Quilter reports profits slump during 'pivotal' year

clock
Quilter reports profits slump during 'pivotal' year

Quilter reported on a 'pivotal' 2019 with its full-year results released today, showing a loss of £53m for 2019.

The company said the fall, from £41m in 2018, was due to "higher policyholder tax."

The company, formerly known as Old Mutual Wealth Management, reported a loss before tax from continuing operations of £21m, down from a profit of £66m in 2018. 

Notwithstanding short term market sentiment, we remain optimistic on the long-term secular opportunity across our markets and Quilter is strategically well positioned to benefit from this."

Quilter said its adjusted profit before tax was up 1% to £235m for the year ended 31 December, of which £53m was from Quilter Life Assurance (QLA).

Assets under management rose 13% from 31 December 2018 to £110.4bn (up from £97.7bn in 2018), while net client cash flow (NCCF) came in at £300m, sharply down from £4.7bn in 2018.

Quilter rebranded from Old Mutual International in February this year, following its separation from Old Mutual in 2018.

Paul Feeney (pictured), Quilter CEO, said, "2019 was a pivotal year for Quilter. Not only were we pleased with a 3% increase in adjusted profit to £182 million, excluding QLA, after business investment via acquisitions and new premises expenditure of around £10 million, it was also a great year for delivering on our transformation agenda.

"Our optimisation plans remain on track and our advice acquisitions will contribute to flows in the coming years. Quilter Investors is now a highly scalable business with a broader range of solutions to meet client needs. Quilter International delivered strong performance in 2019 supported by a focus on cost containment to offset revenue pressures.

"2020 began well but the sharp Coronavirus induced market correction beginning in late February has created a level of uncertainty as to the outlook for the remainder of 2020. It is currently too early to ascertain what impact market volatility will have on investor sentiment, NCCF and the consequential impact this may have on revenues and profitability.

"Notwithstanding short term market sentiment, we remain optimistic on the long-term secular opportunity across our markets and Quilter is strategically well positioned to benefit from this. Completing the first migration onto our new UK platform in early February was a major milestone for the Group."

"We are now focused on delivering the second and final migration to a high quality outcome in the summer. Our new platform will strengthen the cohesion between our different business capabilities and be a catalyst for faster growth."

Subscribe to International Investment's free, twice-daily, newsletter

The company suffered a £53m loss  in a year ending 31 December 2019 - compared to £41m of profit made a year before. The company said the loss was due to "higher policyholder tax."

Quilter chief executive Paul Feeney said 2019 was a "pivotal" year for Quilter.

Commenting on the results, Feeney says: "Our optimisation plans remain on track and our advice acquisitions will contribute to flows in the coming years." Last year, Quilter acquired Charles Derby, and Lighthouse.

Feeney also said that completing the first migration the new platform was "a major milestone" for the company.

He says: "We are now focused on delivering the second and final migration to a high quality outcome in the summer."

Quilter platform migration will be ‘military operation'

"Our new platform will strengthen the cohesion between our different business capabilities and be a catalyst for faster growth."

Looking ahead, Feeney noted that the sharp Coronavirus induced market correction beginning in late February has created "a level of uncertainty as to the outlook for the remainder of 2020."

Feeney said it was too early to ascertain what impact market volatility will have on investor sentiment, and therefore on revenues and profitability.

He says: "Notwithstanding short term market sentiment, we remain optimistic on the long-term secular opportunity across our markets and Quilter is strategically well positioned to benefit from this."

COMMENTS

LEAVE A COMMENT

Author spotlight

Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.