Quilter Plc · LSE:QLT
Quilter — FY2024 Earnings Presentation
41 slides from Quilter's earnings presentation, Mar 5, 2025
Slide 1: Full Year Results 2024
Full Year Results 5 March 2025 2024
Slide 2: Disclaimer
Disclaimer This presentation should be read in conjunction with the announcement published by Quilter plc on 5 March 2025. This presentation may contain forward-looking statements with respect to certain Quilter plc’s plans and its current goals and expectations relating to its future financial cond
Slide 3: Business update: our three key areas of focus
Our three key areas of focus Business update Building Distribution Building Distribution Driving efficiency Increase the number of advisers Be more responsive to customers Modernise our process by investing driving flows into our investment and the market, continue to in new technology and removing
Slide 4: Steven Levin, Chief Executive Officer: Introduction
Our three key areas of focus Steven Levin Chief Executive Officer Introduction Building Distribution Building Distribution Driving efficiency Increase the number of advisers Be more responsive to customers Modernise our process by investing driving flows into our investment and the market, continue
Slide 5: Key figures 2024: an excellent year
Key figures 2024: an excellent year Highlights FY 2024: Adjusted Adjusted PBT Operating margin Core net inflows Dividend diluted EPS £196m 29% £5.2bn 10.6p 5.9p +17% y-o-y +2ppts +525% y-o-y +13% +13% 5
Slide 6: Ongoing Advice Review: Update
Ongoing Advice Review: Update February 2024 March 2024 April 2024 May 2024 June 2024 March 2025 Q2 2025 Thereafter FCA data request on Quilter proactively Completed Skilled Further work/analysis and Following discussion Review/tender Skilled Person Provision of £76m delivery of ongoing decides to re
Slide 7: What we have achieved: significant improvement since 2022
What we have achieved: significant improvement since 2022 Adjusted PBT Operating margin Core net inflows £m % £bn +46% Net inflows 2% 1% 5% /opening AuMA 196 +145% 167 +7ppts 5.2 134 29 27 22 2.1 0.8 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 7
Slide 8: Quarterly core flows: step change in 2024 vs 2023
Quarterly core flows: step change in 2024 vs 2023 Core gross inflows1 Core gross outflows1 Core net inflows1 £bn £bn £bn +26% Net inflows/ 5.0 5.0 5.0 3% 3% 5% 7% opening 4.6 AuMA2 4.5 4.5 4.5 4.0 4.0 3.8 4.0 4.0 3.6 3.5 3.5 -7% 3.5 3.0 2.9 3.0 2.8 2.7 3.0 2.8 2.8 3.0 2.6 2.6 2.6 +142% 2.4 2.5 2.5 2
Slide 9: Delivering best in class flows – Platform
Delivering best in class flows – Platform The UK’s largest and fastest growing advised retail platform 1 1 Gross inflows/opening AuMA (%) % Net flows/opening AuMA (%) % 24 24 22 22 20 20 Peer 1 Quilter Platform 18 18 16 16 Peer 2 14 14 Peer 3 Faster growth (% opening AuMA) 12 12 10 10 Peer 4 Quilter
Slide 10: Material increase in IFA Platform net inflows in 2024
Material increase in IFA Platform net inflows in 2024 Initiatives driving year-on-year improvement: • Deepening relationships with existing advisers on Platform. • Taking increased IFA new business market share in a larger market. • Reduced outflow pressure from consolidators. Cumulative monthly Pla
Slide 11: The importance of Platform flows
The importance of Platform flows Gross flows onto Platform and into Quilter managed solutions £bn £12.4bn +52% y-o-y £4.5bn +32% y-o-y Quilter £3.6bn £2.9bn c.80% solutions channel +23% integration IFA £8.8bn channel +66% c.20% solutions £1.6bn integration Platform Solutions 11 Note: Year-on-year gr
Slide 12: Principal Platform solutions: now rebased towards MPS and Blend/Passive
Principal Platform solutions: now rebased towards MPS and Blend/Passive Fund of funds solutions Managed portfolio solutions AuMA £m AuMA £m 20,000 20,000 CAGR 15,000 -4% CAGR 15,000 +24% CAGR CAGR +44% 10,000 10,000 -20% 5,000 5,000 +10% +17% 0 0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2020 FY 20
Slide 13: Delivering best in class flows: High Net Worth
Delivering best in class flows: High Net Worth Gross inflows/opening AuM1 Net flows/opening AuM1 % % 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 0 Quilter Cheviot Peer 1 Peer 2 Peer 3 -2 -4 -6 Quilter Cheviot Peer 1 Peer 2 Peer 3 1. Peers included where data is available. Peers include Evelyn Partners, Rath
Slide 14: Strategic Priorities
Strategic Priorities Build distribution Enhance propositions Drive efficiency 14
Slide 15: Grow distribution: Quilter channel
Grow distribution: Quilter channel RFP numbers1 £2.8m Adviser £3.2m productivity2 1,392 1,373 Building a next generation advice business (23) 4 1 Building the network of tomorrow Advice Transformation Programme on track. Adviser productivity improved by 14% to £3.2m (2023: £2.8m) 2 Recruiting th
Slide 16: Grow distribution: IFA channel
Grow distribution: IFA channel Platform net flow transfers Why IFAs choose the Quilter Platform: Competitively priced, with excellent functionality. Market leading IT infrastructure and digital capabilities. Quilter solutions and c.3,000 third-party funds. Five-star service. Strong operati
Slide 17: Enhancing proposition
Enhancing proposition High Net Worth Affluent Professional services: targeting CashHub: an award-winning cash savings partners of the large accountancy solution. firms. WealthSelect Managed Portfolio Service Specialist recruitment to target added to four third-party platforms, entrepreneurs
Slide 18: Proposition: adding NuWealth
Proposition: adding NuWealth Acquisition of NuWealth adds digital proposition and distribution capabilities. Digital-first customer proposition. Distribution Supports AGBR by delivering advice-based investment solutions to underserved segments. Proposition Builds future client pipeline for Qui
Slide 19: External recognition
External recognition Multiple awards for best Platform Strong Trustpilot rating x Awards in other propositions High Net Worth awards 19
Slide 20: Transformation: building a scalable and efficient operating model
Transformation: building a scalable and efficient operating model Advice Transformation Programme High Net Worth evolution Organisational simplification Transforming our advice technology to improve client Moving to a single UK regulated entity. Introduce clearer Continue to improve operating margin
Slide 21: Key objectives: strategic evolution
Key objectives: strategic evolution Future: Distribution Grow distribution Grow our adviser and financial Increase market share and improve productivity. planner numbers. Serve a broader range of clients. Capture greater flows when markets improve. Invest in Adviser Academy. Achieve net
Slide 22: Mark Satchel, Chief Financial Officer: Introduction
Our three key areas of focus Mark Satchel Chief Financial Officer Introduction Building Distribution Building Distribution Driving efficiency Increase the number of advisers Be more responsive to customers Modernise our process by investing driving flows into our investment and the market, continue
Slide 23: FY 2024 results: Continued strong delivery
FY 2024 results: Continued strong delivery Continued cost Adjusted profit Operating margin Remain well Revenue growth discipline before tax progress capitalised 219%² £670m¹ £474m £196m 29% Solvency II +7% y-o-y +3% y-o-y +17% y-o-y +2ppts (52ppts) 1. 44bps revenue margin, (3bps) y-o-y. 2. After pay
Slide 24: Operating leverage drives strong growth in adjusted profit and EPS
Operating leverage drives strong growth in adjusted profit and EPS Net inflows Average AuMA Revenue¹ £bn £bn – Reported basis £m 47 44 Revenue margin 5.2 (bps) +11% +7% 113.2 670 102.1 625 71 Investment revenue 62 86 97 Other revenue 4.8 477 502 Core 0.8 Net management fee Reported 0.1 FY 2023 FY 20
Slide 25: Revenue margins tracking in line with expectations
Revenue margins tracking in line with expectations High Net Worth Affluent Managed Managed Administered Revenue margin progression Revenue margin progression Revenue margin progression bps bps bps 71 70 FY revenue margin 70 71 69 FY revenue 41 36 margin FY revenue 41 27 25 margin 37 36 26 25 25 H2 2
Slide 26: Segment revenues: good revenue momentum from all income sources
Segment revenues: good revenue momentum from all income sources High Net Worth Affluent FY 2024 FY 2024 revenues1 revenues2 £226m +7% £424m +8% Y-o-Y Y-o-Y 70bps DFM fee 25bps Platform fee £196m £198m £28bn £80bn 36bps management fee £108m Share of fees3,4 c.65bps advice fee £30bn £30bn £74m £3bn £1
Slide 27: Simplification: efficiency supporting capacity to invest and grow
Simplification: efficiency supporting capacity to invest and grow As a Cost analysis (£m) percentage of FY 2024 expense progression revenues £m FY FY FY FY 15 11 8 2023 2024 2023 2024 18 474 458 (36) Head Support staff costs 115 110 20 Office 19 Operations 21 20 High Net Worth Technology 32 31 170 1
Slide 28: Segment financials: strong year-on-year growth
Segment financials: strong year-on-year growth High Net Worth Affluent Group Adjusted profit Total net revenues before tax¹ Total net revenues £226m £424m +17% £48m Y-o-Y Operating expenses Operating expenses £196m £178m £276m +19% Y-o-Y £148m Adjusted profit before tax Adjusted profit before tax Op
Slide 29: Strong solvency ratio and robust cash position
Strong solvency ratio and robust cash position Solvency II ratio (13)% (28)% (11)% Strong Solvency II ratio. 271% IFRS loss due to Ongoing 219% Advice remediation provision and policyholder tax adjustments. Regulatory solvency Acquisition, transformation, IFRS loss, Ongoing Advice Dividends Regu
Slide 30: Dividend growth in line with EPS growth
Dividend growth in line with EPS growth Dividend Board recommends a 2024 dividend of 5.9p, an increase of 13% (2023: 5.2p). Dividend pay-out ratio of 59% (2023: 61%). Adjusted diluted Earnings Per Share (‘EPS’) of 10.6p, an increase of 13% (2023: 9.4p). Adjusted diluted Earnings Per Share Reco
Slide 31: 2025 operating environment: maintaining our focus on delivery
2025 operating environment: maintaining our focus on delivery Flows and market levels underpinned by lower interest rates supporting higher average AuMA. Management expectations Interest rates gradually to decline over next 12-18 months. Higher costs from business investment, and FSCS/NI incre
Slide 32: Updated guidance
Updated guidance The Quilter financial medium-term model in ‘normal’ Updated guidance markets Net flows of 4-5% of opening AuMA on average, through the Net flows cycle. Net flows/opening AuMA c.+5% Market movements c.+5% Revenue Mix shift reducing High Net Worth margin by c.1bp per annum. margin
Slide 33: Conclusion
Our three key areas of focus Conclusion Building Distribution Building Distribution Driving efficiency Increase the number of advisers Be more responsive to customers Modernise our process by investing driving flows into our investment and the market, continue to in new technology and removing solut
Slide 34: What Quilter will deliver
What Quilter will deliver Structural growth as a large, scale player in an attractive, fragmented UK Wealth Market. 4-5% net flow delivery on average through the cycle, from our strong dual distribution approach. Operating margin improving from a c.30% base, over time. A business fit to deli
Slide 35: Q&A
Our three key areas of focus Q&A Building Distribution Building Distribution Driving efficiency Increase the number of advisers Be more responsive to customers Modernise our process by investing driving flows into our investment and the market, continue to in new technology and removing solutions an
Slide 36: Appendix
Appendix Quilter
Slide 37: Affluent: Step change in IFA Platform net flows
Affluent: Step change in IFA Platform net flows Initiatives driving year-on-year improvement: • Deepening relationships with existing advisers on Platform. • Taking increased IFA new business market share in a larger market. • Reduced outflow pressure from consolidators. Cumulative Platform weekly n
Slide 38: Quilter Investors: investment performance
Quilter Investors: investment performance As at 31 December 2024 Since Fund range 1 Fund vs IA Sector comparator 1Y 3Y 5Y 10Y inception WealthSelect Managed Active 3 1 1 1 1 1 WealthSelect Managed Active 4 2 1 1 2 1 Investment performance WealthSelect Managed Active 5 2 1 1 1 1 WealthSelect Managed
Slide 39: High Net Worth: investment performance
High Net Worth: investment performance Investment Performance Highlights 31 December 2024 Cumulative Return 1 Year 3 Year 5 Year ARC PCI High Net Worth investment performance has been strong. Steady Quilter Cheviot PCI 8.54% 3.94% 20.28% Discretionary client portfolios have outperformed the ARC
Slide 40: Efficient capital and balance sheet management
Efficient capital and balance sheet management 1 Group capital requirements (regulatory capital and stress buffers) On-going Current year dividend cash needs Working capital and interest Solvency II Ratio 2 219% Investing Growth investment organically Simplification programme Capital inves
Slide 41: Client pricing: open, unbundled, with choice at the heart
Client pricing: open, unbundled, with choice at the heart Average fees example, reflecting current predominant choice by clients & their advisers % of investment Total Upfront Ongoing p.a. Equivalent p.a. Total Financial p.a/ Wrapper / Investment Total Advice Total Advice A+B Advice 10 Years Admin M