FTSE 250 wealth manager Quilter has reported a record adjusted profit amid a recovery in net inflows and improvements in global equity markets.
The firm said on Wednesday that it saw an adjusted pretax profit of £97m during the first half of 2024, up 28 per cent from the same period last year. Its operating margin rose five percentage points to 29 per cent.
Quilter posted net inflows of £1.5bn for the six months, up from £0.2bn a year before, and positive market movements of £5.6bn.
Net inflows into its core businesses totalled £1.7bn, up £1bn year on year, which the firm said reflected “continued good performance” from its high net worth and affluent segments, as well as a 50 per cent jump in gross inflows onto its platform via its independent financial adviser channel.
The company’s assets under management and administration stood at £113.8bn at the end of June, seven per cent higher than six months prior.
The rebound in flows suggests investor nerves may be easing after a troubling two years for London’s money managers. Higher interest rates and volatility on equity markets have pushed investors toward safer cash holdings.
“With UK inflation easing, consumers’ disposable income has improved, leading to early signs of incremental discretionary saving,” Quilter’s chief executive Steven Levin said on Wednesday.
“We expect new business levels across the industry in 2024 to be higher than in 2023.”
Quilter has managed to shrug off the worst of the industry downturn amid a major cost-cutting programme, with the first half of 2024 marking its third straight decline in first-half costs. Shares in the firm have traded up 79 per cent over the past 12 months.
In June, Quilter appointed a “skilled person” to conduct a review of its ongoing advice service after it was one of 20 large firms the Financial Conduct Authority had written to after concerns over ongoing charges for customers.
Quilter said on Wednesday that it expected to provide an update on this review by early 2025.