Quilter reports 3.4 pence EPS in half-year results

Quilter plc reported strong H1 2025 financial results, with profit after tax surging to £46 million from £13 million year-over-year and basic EPS rising to 3.4 pence. This performance was underpinned by a significant increase in fee income to £311 million and growth in assets under management and administration to £64.18 billion, despite a decline in total income from lower investment returns. The company declared an interim dividend of 2.0 pence, while also addressing ongoing discussions with the FCA concerning potential customer remediation following a finalized review of its advice services.

Analysis

Quilter plc's H1 2025 results present a mixed but fundamentally positive operational picture. The firm reported a significant increase in profitability, with profit after tax surging to £46 million from £13 million year-over-year, driving basic earnings per share up to 3.4 pence from 1.0 pence. This bottom-line strength, however, contrasts with a substantial decrease in total income to £2.56 billion from £3.39 billion, attributed to lower investment returns. More indicative of core business health, fee and other service income grew to £311 million from £286 million, supported by an increase in assets under management and administration to £64.18 billion as of June 30, 2025. The growth was primarily driven by its Affluent segment, which saw adjusted profit rise to £79 million. A key risk factor remains the ongoing discussion with the Financial Conduct Authority (FCA) regarding potential customer remediation following a Skilled Person Review, which introduces an unquantified liability. The board's confidence is signaled by the declaration of a 2.0 pence interim dividend, though the modest rise in adjusted pre-tax profit to £100 million from £97 million suggests underlying growth is more tempered than headline figures indicate.

Key Decisions for Investors

• Investors should weigh the strong growth in core fee-based income and assets under management against the volatility demonstrated by the significant drop in total income from investment returns.
• The ongoing FCA review presents a material, unquantified risk, and any future provisions for customer remediation could negatively impact profitability and capital return capacity.
• The 2.0 pence interim dividend provides a tangible return, but the modest 3% increase in adjusted pre-tax profit should be considered a more conservative indicator of underlying performance than the headline net profit figure.