Quilter targets doubling in profit by 2025, $500 million return to shareholders

1 min read

LONDON – Fund manager Quilter set out targets on Wednesday of more than doubling operating profit by 2025 and returning around 350 million pounds ($477.02 million) from the sale of Quilter International to shareholders alongside 2021 results.

Quilter set a new dividend policy with a target pay-out range of 50% to 70% of post-tax, post-interest adjusted profits, up from a previous 40% to 60% of post-tax adjusted profits, it said in a statement.

The fund manager, which became a standalone company after the break-up of Anglo-South African financial services firm Old Mutual in 2018, expects the previously announced 480 million pound sale of Quilter International to Utmost to complete by the end of the year.

This would leave the firm with around 440 million pounds after costs, it said ahead of an investor day.

In addition to the shareholder payout, Quilter plans to spend 90 million pounds on a simplification programme to cut costs and invest in growth areas such as a “hybrid” advice offering and more digitalisation.

“We now look forward to executing the next stage of Quilter’s strategic journey, which will be characterised by a focus on growth and efficiency,” CEO Paul Feeney said.

Quilter said it would reaffirm its 6%-plus annual net flow target from 2022 onwards and operating margin targets of at least 25% by 2023 and 30%-plus by 2025.

Assets under management and administration from continuing business totalled 108.5 billion pounds at end-September 2021, it said in a separate statement, with year-to-date net inflows of 3.0 billion pounds, compared with 1.1 billion a year ago.

($1 = 0.7337 pounds)

(Reporting by Carolyn Cohn; Editing by Rachel Armstrong and Louise Heavens)