Half Year 2026 Quilter PLC Earnings Call Transcript
Key Points
- Record core net flows of GBP6 billion in H1 2026, up over 30% year-on-year, demonstrating strong business momentum.
- Peer-leading net inflows of 9% of opening assets, with market share of new business rising to 18% from 12% since 2023.
- Adjusted profit increased 12% to GBP112 million, with earnings per share up 13% to 6.1p.
- Strong balance sheet with a stable solvency ratio and GBP360 million in cash, supporting ongoing share buybacks and dividend growth.
- Market leadership in MPS with 13% market share and Quilter Cheviot's strong net flows, supported by strategic investments in technology and AI to drive future productivity.
- Operating margin remained flat at 30% despite revenue growth, due to elevated business investment and lower interest income on shareholder capital.
- Revenue margin attrition in the Affluent segment continues due to mix shifts to lower-margin products and tiered client charges, with potential further pressure if markets rise.
- Costs increased 13% year-on-year, driven by inflation and investment, with full-year costs expected at the higher end of guidance.
- Quilter Cheviot's RFP numbers fell from 64 to 47 due to a restructuring that led to 12 advisers leaving, though this is expected to improve productivity.
- Uncertainty from UK political changes and potential budget speculation could impact client flows, though the advised model provides some resilience.
Good morning, everyone, and welcome to our 2026 interim results. And if you haven't already seen it in the wild, I hope you enjoyed the intro with our new TV ad for Money Needs a Plan.
Right on to business. I'll start with a review of the first half highlights and our flow performance, then Mark will take us through the financials. I'll conclude with the growth outlook for our business and why we are very well placed. Then I'll take questions.
I'm very pleased with our performance in the first half of 2026. Core net flows were up to a record GBP6 billion. That's up over 30% on last year and 2025 was a record too. So, we've accelerated further from a strong base. Net flows were 9% of opening assets, up a percentage point on last year despite the sharp increase in assets from market growth.
Our operating margin was stable at 30% despite elevated business investment and lower interest rates reducing the income we generated on shareholder capital. Adjusted profit increased 12% to GBP112 million, good momentum
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