Quilter plc 2023 Half Year Results - Part 2

About this update from Quilter Plc

[{"type":"text","content":"\n \n Statement of Directors' responsibilities in respect of the interim financial statements \n For the period ended 30 June 2023 \n   \n Each of the Directors of Quilter plc confirms to the best of their knowledge and belief that: \n ·      The condensed consolidated interim financial statements, which comprises the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of financial position, the consolidated statement of cash flows and the related explanatory notes, has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the United Kingdom and gives a true and fair view of the assets, liabilities, financial position and profits of the Group for the period ended 30 June 2023. These interim financials have been prepared and published in compliance with the acceptable accounting frameworks of the London Stock Exchange (\"LSE\"), where the Company has its primary listing. \n ·      The interim management report includes a fair review of the information required by: \n a)     DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of consolidated financial statements, and a description of the principal risks and uncertainties for the remaining six months of the year, and \n b)     DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the Group during that period, and any changes in the related party transactions described in the Group's 2022 Annual Report that could do so. \n Consistent with principle N of the UK Corporate Governance Code, the results for the six months ended 30 June 2023 taken as a whole, present a fair, balanced and understandable assessment of the Company's position and prospects. \n Quilter plc is listed with a primary listing on the LSE and a secondary listing on the Johannesburg Stock Exchange (\"JSE\"). \n A list of the current Directors is maintained on the Group's website: https://plc.quilter.com/about-us/quilter-leadership/. \n Signed on behalf of the Board \n   \n   \n Steven Levin                                                                             Mark Satchel Chief Executive Officer                                                             Chief Financial Officer \n7 August 2023                                                                            7 August 2023 \n Independent review report to Quilter plc \n Report on the condensed consolidated interim financial statements \n Our conclusion \n We have reviewed Quilter plc's condensed consolidated interim financial statements (the \"interim financial statements\") in the interim results of Quilter plc for the 6 month period ended 30 June 2023 (the \"period\"). \n Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK‑adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. \n The interim financial statements comprise: \n ·     the Condensed consolidated statement of financial position as at 30 June 2023; \n ·     the Condensed consolidated income statement and Condensed consolidated statement of comprehensive income for the period then ended; \n ·     the Condensed consolidated statement of cash flows for the period then ended; \n ·     the Condensed consolidated statement of changes in equity for the period then ended; and \n ·     the explanatory notes to the interim financial statements. \n \nThe interim financial statements included in the interim results of Quilter plc have been prepared in accordance with UK‑adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. \n Basis for conclusion \n We conducted our review in accordance with International Standard on Review Engagements (UK ) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom (\"ISRE (UK) 2410\"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. \n A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. \n We have read the other information contained in the interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements. \n Conclusions relating to going concern \n Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the Directors have inappropriately adopted the going concern basis of accounting or that the Directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the Group to cease to continue as a going concern. \n \n \n   \n Responsibilities for the interim financial statements and the review \n Our responsibilities and those of the Directors \n The interim results, including the interim financial statements, are the responsibility of, and have been approved by the Directors. The Directors are responsible for preparing the interim results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the interim results , including the interim financial statements, the Directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. \n Our responsibility is to express a conclusion on the interim financial statements in the interim results based on our review. Our conclusion , including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion section of this report. This report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. \n   \n   \n PricewaterhouseCoopers LLP \n Chartered Accountants \n London \n 7 August 2023 \n   \n   \n   \n \n \n \n Condensed consolidated income statement \n \n \n \n \n For the period ended 30 June 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n £m \n \n \n \n \n   \n \n \n Notes \n \n \n Six months \n  2023 \n \n \n Six months \n             2022 \n \n \n Full year \n             2022 \n \n \n \n \n Income \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fee income and other income from service activities \n \n \n 6(b) \n \n \n 277 \n \n \n 292 \n \n \n 581 \n \n \n \n \n Investment return \n \n \n \n \n \n 1,302 \n \n \n (5,326) \n \n \n (4,649) \n \n \n \n \n Other income \n \n \n \n \n \n 2 \n \n \n 21 \n \n \n 28 \n \n \n \n \n Total income \n \n \n \n \n \n 1,581 \n \n \n (5,013) \n \n \n (4,040) \n \n \n \n \n Expenses \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Change in investment contract liabilities \n \n \n 17 \n \n \n (1,018) \n \n \n 4,825 \n \n \n 4,318 \n \n \n \n \n Fee and commission expenses, and other acquisition costs \n \n \n \n \n \n (25) \n \n \n (26) \n \n \n (54) \n \n \n \n \n Change in third-party interests in consolidated funds \n \n \n \n \n \n (202) \n \n \n 555 \n \n \n 438 \n \n \n \n \n Other operating and administrative expenses \n \n \n \n \n \n (297) \n \n \n (297) \n \n \n (584) \n \n \n \n \n Finance costs \n \n \n \n \n \n (11) \n \n \n (7) \n \n \n (13) \n \n \n \n \n Total expenses \n \n \n \n \n \n (1,553) \n \n \n 5,050 \n \n \n 4,105 \n \n \n \n \n Profit before tax from continuing operations \n \n \n \n \n \n 28 \n \n \n 37 \n \n \n 65 \n \n \n \n \n Tax (expense)/credit attributable to policyholder returns \n \n \n 7 \n \n \n (21) \n \n \n 145 \n \n \n 134 \n \n \n \n \n Profit before tax attributable to equity holders from continuing operations \n \n \n \n \n \n 7 \n \n \n 182 \n \n \n 199 \n \n \n \n \n   Income tax (expense)/credit \n \n \n 7 \n \n \n (23) \n \n \n 114 \n \n \n 110 \n \n \n \n \n   Less: tax expense/(credit) attributable to policyholder returns \n \n \n \n \n \n 21 \n \n \n (145) \n \n \n (134) \n \n \n \n \n Tax expense attributable to equity holders \n \n \n \n \n \n (2) \n \n \n (31) \n \n \n (24) \n \n \n \n \n Profit after tax from continuing operations \n \n \n \n \n \n 5 \n \n \n 151 \n \n \n 175 \n \n \n \n \n Loss after tax from discontinued operations \n \n \n 4(b) \n \n \n - \n \n \n (1) \n \n \n - \n \n \n \n \n Profit after tax \n \n \n \n \n \n 5 \n \n \n 150 \n \n \n 175 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Attributable to: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Equity holders of Quilter plc \n \n \n \n \n \n 5 \n \n \n 150 \n \n \n 175 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Earnings per Ordinary Share on profit attributable to Ordinary Shareholders of Quilter plc 1 \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Basic earnings per Ordinary Share (pence) \n \n \n 8(b) \n \n \n 0.4 \n \n \n 9.8 \n \n \n 12.2 \n \n \n \n \n Diluted earnings per Ordinary Share (pence) \n \n \n 8(b) \n \n \n 0.4 \n \n \n 9.7 \n \n \n 12.0 \n \n \n \n 1 The Financial Reporting Council (\"FRC\") published a thematic review on earnings per share in September 2022. The EPS figures presented above for the six months to 30 June 2022 and the year to 31 December 2022 were calculated using the weighted average number of shares which was determined without making any retrospective adjustment for the impact of the Share Consolidation completed in May 2022 in line with the FRC's guidance and IAS 33 Earnings per Share. In the Group's interim financial statements for the six months to 30 June 2022, the disclosed EPS metrics for June 2022 were calculated using a weighted average number of shares which allowed for a retrospective adjustment for the impact of the May 2022 Share Consolidation. The June 2022 EPS metrics shown above were corrected following the FRC thematic review. \n   \n   \n \n \n \n Condensed consolidated statement of comprehensive income \n \n \n \n \n For the period ended 30 June 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n £m \n \n \n \n \n   \n \n \n Note \n \n \n Six months \n       2023 \n \n \n Six months \n       2022 \n \n \n Full year \n        2022 \n \n \n \n \n Profit after tax \n \n \n \n \n \n 5 \n \n \n 150 \n \n \n 175 \n \n \n \n \n Total comprehensive income \n \n \n \n \n \n 5 \n \n \n 150 \n \n \n 175 \n \n \n \n \n Attributable to: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Continuing operations \n \n \n \n \n \n 5 \n \n \n 151 \n \n \n 175 \n \n \n \n \n Discontinued operations \n \n \n 4(b) \n \n \n - \n \n \n (1) \n \n \n - \n \n \n \n \n Equity holders of Quilter plc \n \n \n \n \n \n 5 \n \n \n 150 \n \n \n 175 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n Condensed consolidated statement of changes in equity \n \n \n \n \n For the period ended 30 June 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n £m \n \n \n \n \n   \n \n \n Notes \n \n \n Ordinary \n Share \n capital \n \n \n Ordinary Share \n premium reserve \n \n \n B shares \n \n \n Capital redemption reserve \n \n \n Merger \n reserve \n \n \n Share-based payments reserve \n \n \n Other reserves \n \n \n Retained earnings \n \n \n Total \n share- \n holders' \n equity \n \n \n \n \n Balance at 1 January 2022 \n \n \n   \n \n \n 116 \n \n \n 58 \n \n \n - \n \n \n 17 \n \n \n 25 \n \n \n 42 \n \n \n (1) \n \n \n 1,482 \n \n \n 1,739 \n \n \n \n \n Profit after tax \n \n \n   \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 150 \n \n \n 150 \n \n \n \n \n Total comprehensive income \n \n \n   \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 150 \n \n \n 150 \n \n \n \n \n Dividends \n \n \n 9 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (62) \n \n \n (62) \n \n \n \n \n Ordinary Shares repurchased in the buyback programme 1 \n \n \n 16 \n \n \n (1) \n \n \n - \n \n \n - \n \n \n 1 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Issue of B shares 2 \n \n \n 16 \n \n \n - \n \n \n - \n \n \n 328 \n \n \n - \n \n \n (25) \n \n \n - \n \n \n - \n \n \n (303) \n \n \n - \n \n \n \n \n Redemption of B shares 2 \n \n \n 16 \n \n \n - \n \n \n - \n \n \n (328) \n \n \n 328 \n \n \n - \n \n \n - \n \n \n - \n \n \n (328) \n \n \n (328) \n \n \n \n \n Exchange rate movement (ZAR/GBP) 3 \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (4) \n \n \n (4) \n \n \n \n \n Movement in own shares \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 19 \n \n \n 19 \n \n \n \n \n Equity share-based payment transactions \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (8) \n \n \n - \n \n \n 19 \n \n \n 11 \n \n \n \n \n Aggregate tax effects of items recognised directly in equity \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (2) \n \n \n - \n \n \n - \n \n \n (2) \n \n \n \n \n Total transactions with the owners of the Company \n \n \n (1) \n \n \n - \n \n \n - \n \n \n 329 \n \n \n (25) \n \n \n (10) \n \n \n - \n \n \n (659) \n \n \n (366) \n \n \n \n \n Balance at 30 June 2022 \n \n \n   \n \n \n 115 \n \n \n 58 \n \n \n - \n \n \n 346 \n \n \n - \n \n \n 32 \n \n \n (1) \n \n \n 973 \n \n \n 1,523 \n \n \n \n \n Profit after tax \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 25 \n \n \n 25 \n \n \n \n \n Total comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 25 \n \n \n 25 \n \n \n \n \n Dividends \n \n \n 9 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (16) \n \n \n (16) \n \n \n \n \n Movement in own shares \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 3 \n \n \n 3 \n \n \n \n \n Equity share-based payment transactions \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 9 \n \n \n - \n \n \n 4 \n \n \n 13 \n \n \n \n \n Total transactions with the owners of the Company \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 9 \n \n \n - \n \n \n (9) \n \n \n - \n \n \n \n \n Balance at 31 December 2022 \n \n \n   \n \n \n 115 \n \n \n 58 \n \n \n - \n \n \n 346 \n \n \n - \n \n \n 41 \n \n \n (1) \n \n \n 989 \n \n \n 1,548 \n \n \n \n \n Profit after tax \n \n \n   \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 5 \n \n \n 5 \n \n \n \n \n Total comprehensive income \n \n \n   \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 5 \n \n \n 5 \n \n \n \n \n Dividends \n \n \n 9 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (45) \n \n \n (45) \n \n \n \n \n Exchange rate movement (ZAR/GBP) 3 \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 2 \n \n \n 2 \n \n \n \n \n Movement in own shares \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (13) \n \n \n (13) \n \n \n \n \n Equity share-based payment transactions \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (9) \n \n \n - \n \n \n 17 \n \n \n 8 \n \n \n \n \n Total transactions with the owners of the Company \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (9) \n \n \n - \n \n \n (39) \n \n \n (48) \n \n \n \n \n Transfer to retained earnings \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1 \n \n \n (1) \n \n \n - \n \n \n \n \n Balance at 30 June 2023 \n \n \n   \n \n \n 115 \n \n \n 58 \n \n \n - \n \n \n 346 \n \n \n - \n \n \n 32 \n \n \n - \n \n \n 954 \n \n \n 1,505 \n \n \n \n 1 On 11 March 2020, the Company announced a share buyback programme to purchase Ordinary Shares up to a maximum value of £375 million, in order to return the net surplus proceeds to shareholders arising from the sale of Quilter Life Assurance which reduced the share capital of the Company. During the year ending 31 December 2022, the Company acquired 17.7 million shares for a total consideration of £26 million and incurred additional costs of £1 million. The Company had committed to the buyback of these shares during the year to 31 December 2021 and had recognised an accrual for £26 million as at 31 December 2021.  This was the final tranche of the share buyback programme and was completed in January 2022. The shares, which have a nominal value of £1 million, were cancelled in the six months ending 30 June 2022, giving rise to a capital redemption reserve of the same value as required by the Companies Act 2006. \n 2 On 9 March 2022, the Company announced a capital return of £328 million from the net surplus proceeds arising from the sale of Quilter International by way of a B Share Scheme accompanied by a Share Consolidation. Refer to note 4 in the Group's 2022 Annual Report for further details of the capital return and Share Consolidation. Following the issue and redemption of the B preference shares as part of the B Share Scheme, the Company transferred £328 million from retained earnings to the capital redemption reserve, as required under the provisions of sections 688 and 733 of the Companies Act 2006, being an amount equal to the nominal value of the B shares redeemed in the year. The increase in the capital redemption reserve results from the UK company law requirement to maintain the Company's capital when shares are redeemed out of the Company's distributable profits. \n 3 The South African Rand value of the proposed capital return for shares registered on the Johannesburg Stock Exchange was set on 9 March 2022. The impact of exchange rate movements between the year-end Market Announcement on 9 March 2022 and the redemption of the B shares on 24 May 2022 on the pound sterling equivalent of payments to JSE shareholders in South African Rand is recognised directly in equity. Additionally, the impact of exchange rate movements between the announcement dates of dividends payable and the payment dates on the pound sterling equivalent of payments to JSE shareholders in South African Rand are recognised directly in equity. The Group held cash in South African Rand equal to the expected cash outflows and therefore was economically hedged for the outflows. \n   \n   \n   \n \n \n \n Condensed consolidated statement of financial position \n \n \n \n \n At 30 June 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n \n \n \n Notes \n \n \n 30 June \n 2023 \n \n \n 30 June \n 2022 \n \n \n 31 December \n 2022 \n \n \n \n \n Assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Goodwill and intangible assets \n \n \n 10 \n \n \n 391 \n \n \n 433 \n \n \n 413 \n \n \n \n \n Property, plant and equipment \n \n \n \n \n \n 97 \n \n \n 117 \n \n \n 112 \n \n \n \n \n Investment property \n \n \n 11 \n \n \n 10 \n \n \n - \n \n \n - \n \n \n \n \n Investments in associated undertakings \n \n \n \n \n \n 2 \n \n \n 1 \n \n \n 1 \n \n \n \n \n Contract costs \n \n \n \n \n \n 10 \n \n \n 10 \n \n \n 10 \n \n \n \n \n Loans and advances \n \n \n \n \n \n 40 \n \n \n 34 \n \n \n 34 \n \n \n \n \n Financial investments \n \n \n 12 \n \n \n 45,506 \n \n \n 42,106 \n \n \n 43,617 \n \n \n \n \n Deferred tax assets \n \n \n \n \n \n 68 \n \n \n 110 \n \n \n 94 \n \n \n \n \n Current tax receivable \n \n \n \n \n \n 18 \n \n \n - \n \n \n 10 \n \n \n \n \n Trade, other receivables and other assets \n \n \n \n \n \n 646 \n \n \n 523 \n \n \n 303 \n \n \n \n \n Derivative assets \n \n \n \n \n \n 26 \n \n \n 8 \n \n \n 40 \n \n \n \n \n Cash and cash equivalents \n \n \n 15 \n \n \n 1,800 \n \n \n 1,793 \n \n \n 1,782 \n \n \n \n \n Assets held for sale \n \n \n 4(e) \n \n \n - \n \n \n - \n \n \n 1 \n \n \n \n \n Total assets \n \n \n   \n \n \n 48,614 \n \n \n 45,135 \n \n \n 46,417 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Equity and liabilities \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Ordinary Share capital \n \n \n 16 \n \n \n 115 \n \n \n 115 \n \n \n 115 \n \n \n \n \n Ordinary Share premium reserve \n \n \n 16 \n \n \n 58 \n \n \n 58 \n \n \n 58 \n \n \n \n \n Capital redemption reserve \n \n \n \n \n \n 346 \n \n \n 346 \n \n \n 346 \n \n \n \n \n Share-based payments reserve \n \n \n \n \n \n 32 \n \n \n 32 \n \n \n 41 \n \n \n \n \n Other reserves \n \n \n   \n \n \n - \n \n \n (1) \n \n \n (1) \n \n \n \n \n Retained earnings \n \n \n   \n \n \n 954 \n \n \n 973 \n \n \n 989 \n \n \n \n \n Total equity \n \n \n   \n \n \n 1,505 \n \n \n 1,523 \n \n \n 1,548 \n \n \n \n \n Liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Investment contract liabilities \n \n \n 17 \n \n \n 40,070 \n \n \n 37,167 \n \n \n 38,186 \n \n \n \n \n Third-party interests in consolidated funds \n \n \n \n \n \n 5,930 \n \n \n 5,404 \n \n \n 5,843 \n \n \n \n \n Provisions \n \n \n 18 \n \n \n 61 \n \n \n 64 \n \n \n 69 \n \n \n \n \n Deferred tax liabilities \n \n \n \n \n \n 21 \n \n \n 29 \n \n \n 24 \n \n \n \n \n Current tax payable \n \n \n \n \n \n 1 \n \n \n 10 \n \n \n 1 \n \n \n \n \n Borrowings and lease liabilities \n \n \n \n \n \n 284 \n \n \n 293 \n \n \n 290 \n \n \n \n \n Trade, other payables and other liabilities \n \n \n \n \n \n 731 \n \n \n 615 \n \n \n 436 \n \n \n \n \n Derivative liabilities \n \n \n \n \n \n 11 \n \n \n 30 \n \n \n 20 \n \n \n \n \n Total liabilities \n \n \n   \n \n \n 47,109 \n \n \n 43,612 \n \n \n 44,869 \n \n \n \n \n Total equity and liabilities \n \n \n   \n \n \n 48,614 \n \n \n 45,135 \n \n \n 46,417 \n \n \n \n Approved by the Board of Directors on 7 August 2023 and signed on its behalf by \n   \n   \n   \n Steven Levin                         Mark Satchel \n Chief Executive Officer         Chief Financial Officer \n   \n   \n Condensed consolidated statement of cash flows \n For the period ended 30 June 2023 \n The cash flows presented in this statement cover all the Group's activities (continuing and discontinued operations) and include flows from both policyholder and shareholder activities. All cash and cash equivalents are available for general use by the Group for the purposes of the disclosures required under IAS 7 Statement of Cash Flows except for cash and cash equivalents in consolidated funds (as shown in note 15). Cash flows for discontinued operations are shown separately in note 4 (c). \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n \n \n \n Notes \n \n \n Six months \n          2023 \n \n \n Six months \n  2022 1 \n \n \n Full year \n           2022 \n \n \n \n \n Cash flows from operating activities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n 941 \n \n \n 1,093 \n \n \n 1,698 \n \n \n \n \n Taxation paid \n \n \n \n \n \n (8) \n \n \n (12) \n \n \n (22) \n \n \n \n \n Total net cash flows from operating activities \n \n \n \n \n \n 933 \n \n \n 1,081 \n \n \n 1,676 \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Net acquisitions of financial investments \n \n \n \n \n \n (837) \n \n \n (913) \n \n \n (1,494) \n \n \n \n \n Acquisition of property, plant and equipment \n \n \n \n \n \n (1) \n \n \n - \n \n \n (3) \n \n \n \n \n Proceeds from sale of property, plant and equipment held for sale \n \n \n \n \n \n 1 \n \n \n - \n \n \n - \n \n \n \n \n Acquisition of interests in subsidiaries 2 \n \n \n 4(d) \n \n \n - \n \n \n (5) \n \n \n (5) \n \n \n \n \n Investment in associate \n \n \n \n \n \n (1) \n \n \n - \n \n \n - \n \n \n \n \n Net payments from the disposal of interests in subsidiaries \n \n \n \n \n \n - \n \n \n (1) \n \n \n - \n \n \n \n \n Total net cash flows from investing activities \n \n \n \n \n \n (838) \n \n \n (919) \n \n \n (1,502) \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Dividends paid to equity holders of the Company \n \n \n 9 \n \n \n (45) \n \n \n (62) \n \n \n (78) \n \n \n \n \n Finance costs on external borrowings \n \n \n \n \n \n (10) \n \n \n (5) \n \n \n (9) \n \n \n \n \n Payment of interest on lease liabilities \n \n \n \n \n \n (1) \n \n \n (1) \n \n \n (3) \n \n \n \n \n Payment of principal of lease liabilities \n \n \n \n \n \n (4) \n \n \n (9) \n \n \n (11) \n \n \n \n \n Quilter plc shares acquired for use within the Group's employee share scheme \n \n \n \n \n \n (15) \n \n \n - \n \n \n - \n \n \n \n \n Redemption of B shares 3 \n \n \n \n \n \n - \n \n \n (328) \n \n \n (328) \n \n \n \n \n Repurchase and cancellation of Ordinary Shares 4 \n \n \n \n \n \n - \n \n \n (28) \n \n \n (28) \n \n \n \n \n Exchange rate movements passed to shareholders 5 \n \n \n \n \n \n 2 \n \n \n (4) \n \n \n (4) \n \n \n \n \n Proceeds from the issue of subordinated debt \n \n \n 3 \n \n \n 199 \n \n \n - \n \n \n - \n \n \n \n \n Subordinated debt repaid \n \n \n 3 \n \n \n (200) \n \n \n - \n \n \n - \n \n \n \n \n Total net cash flows from financing activities \n \n \n \n \n \n (74) \n \n \n (437) \n \n \n (461) \n \n \n \n \n Net increase/(decrease) in cash and cash equivalents \n \n \n \n \n \n 21 \n \n \n (275) \n \n \n (287) \n \n \n \n \n Cash and cash equivalents at the beginning of the year \n \n \n \n \n \n 1,782 \n \n \n 2,064 \n \n \n 2,064 \n \n \n \n \n Effect of exchange rate changes on cash and cash equivalents \n \n \n \n \n \n (3) \n \n \n 4 \n \n \n 5 \n \n \n \n \n Cash and cash equivalents at end of the period \n \n \n 15(a) \n \n \n 1,800 \n \n \n 1,793 \n \n \n 1,782 \n \n \n \n 1 The June 2022 figures have been re-presented to address a minor classification difference between net cash flows from operating activities and net cash flows from financing activities relating to the classification of exchange rate movements passed to shareholders. Net cash flows from financing activities includes a £4 million outflow that was originally presented within net cash flows from operating activities. \n 2 The acquisition of interests in subsidiaries results from contingent consideration payments relating to historical acquisitions. \n 3 In March 2022, the Company announced a capital return of £328 million from the net surplus proceeds arising from the sale of Quilter International by way of a B Share Scheme accompanied by a Share Consolidation. The capital return was completed in May 2022. \n 4 The repurchase and cancellation of Ordinary Shares outflow relates to the cash movements associated with the share buyback programme. Further details are included within the condensed consolidated statement of changes in equity. \n 5 The exchange rate movements passed to shareholders relate to foreign exchange gains or losses that have arisen on the capital return and dividend payments to JSE shareholders. Further details are included within the condensed consolidated statement of changes in equity. \n   \n Notes to the condensed consolidated interim financial statements \n For the period ended 30 June 2023 \n General information \n Quilter plc (the \"Company\"), a public limited company incorporated in England and Wales and domiciled in the United Kingdom (\"UK\"), together with its subsidiaries (collectively, the \"Group\") offers investment and wealth management services, long-term savings and financial advice primarily in the UK. Quilter plc is listed on the London and Johannesburg Stock Exchanges. \n The Parent Company's registration number is 06404270. The address of the registered office is Senator House, 85 Queen Victoria Street, London, EC4V 4AB. \n 1: Basis of preparation \n The results for the six months ended 30 June 2023 have been prepared in accordance with the UK-adopted IAS 34 Interim Financial Reporting and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority , and although unaudited, have been reviewed by the Company's Auditor, PricewaterhouseCoopers LLP, and their report is included earlier in this document. These condensed consolidated interim financial statements (\"interim financial statements\") of Quilter plc for the six months ended 30 June 2023 do not constitute statutory accounts as defined by section 434 of the Companies Act 2006. Comparative financial information for the full year 2022 has been presented from the Group's 2022 Annual Report, which has been filed with the Registrar of Companies and was prepared in accordance with the UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. The auditor's report on those financial statements was not qualified, did not include a reference to any matters to which the auditor drew attention by the way of emphasis without qualifying the report and did not contain statements under section 498(2) or (3) of the Companies Act 2006. Copies of the Group's 2022 Annual Report are available online at plc.quilter.com. \n These interim financial statements do not include all of the information required for a complete set of IFRS compliant financial statements. Selected notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the publication of the Group's 2022 Annual Report. The Board considers that the alternative performance measures provided, such as adjusted profit, are also useful for both management and investors. Any seasonal or cyclical factors, to the extent that they materially impact the Group's results, are described in the Financial review. \n There have been no changes in the Group's material accounting policies during the period. All accounting policies for recognition, measurement, consolidation and presentation are as outlined in the Group's 2022 Annual Report. These interim financial statements have been prepared on a historical cost basis, except for the revaluation of certain financial instruments, and are presented in pounds sterling, which is the currency of the primary economic environment in which the Group operates. \n Going concern \n The Directors have considered the resilience of the Group, its current financial position, the principal risks facing the business and the effectiveness of any mitigating strategies which are or could be applied. This included an assessment of capital and liquidity over a three-year business planning period covering 2023 to 2025. As part of the going concern assessment, the Group took into consideration the current position of the UK economy including the impact of inflation and increases in the cost of living. The Group also took into consideration risks related to climate change. Based on the assessment, the Directors believe that both the Group and Quilter plc as the Parent Company, have sufficient financial resources to continue in business for a period of at least 12 months from the date of approval of these interim financial statements and continue to adopt the going concern basis in preparing the interim financial statements. \n Critical accounting estimates and judgements \n The preparation of financial statements requires management to exercise judgement in applying the Group's material accounting policies and in making estimates and assumptions that affect the reported assets and liabilities at the date of the financial statements. The Board Audit Committee reviews these areas of judgement and estimates and the appropriateness of material accounting policies adopted in the preparation of these financial statements. \n The critical estimates and judgements disclosed in detail in the Group's 2022 Annual Report on pages 126 to 127 continue to be critical to the Group during the six months ended 30 June 2023. The Group's critical accounting estimates and judgements are detailed below: \n Critical accounting judgements \n The Group's critical accounting judgements are those that management makes when applying its material accounting policies and that have the greatest effect on the net profit and net assets recognised in the Group's financial statements. There are no new critical accounting judgements for the Group for the current period. \n Critical accounting estimates \n The Group's critical accounting estimates involve the most complex or subjective assessments and assumptions, which have a significant risk of resulting in material adjustment to the carrying amounts of assets and liabilities within the next financial year. Management uses its knowledge of current facts and circumstances and applies estimation and assumption setting techniques that are aligned with relevant actuarial and accounting standards and guidance to make predictions about future actions and events. Actual results may differ from those estimates. \n Provision for cost of defined benefit pension advice \n An estimate was determined for potential unsuitable advice which may be found via the Group-managed past business review of defined benefit to defined contribution (\"DB to DC\") pension transfer advice using a methodology which takes account of recent experience of redress payments calculated by an independent expert, including the recent skilled person review, and applying a proportion of transfer value to determine redress payable as an indicative provision. The calculations are based upon FCA guidelines and modelling performed, and factors including pension transfer value, date of retirement, discount rate and inflation rate assumptions. \n Measurement of deferred tax \n The estimate of future taxable profits is performed as part of the annual business planning process, and is based on estimated levels of AuMA, which are subject to a large number of factors including global stock market movements, related movements in foreign exchange rates and net client cash flows, together with estimates of expenses and other charges. The Business Plan, adjusted for known and estimated tax sensitivities, is used to determine the extent to which deferred tax assets are recognised. In general, the Group assesses recoverability of shareholder assets based on estimated taxable profits over a three-year planning horizon and assesses policyholder assets based on estimated investment growth over the medium term. Management has reassessed the sensitivity on the recoverability of deferred tax assets based on the latest forecast cash flows. See note 29 of the 2022 Annual Report for further details. \n 2: New standards, amendments to standards, and interpretations adopted by the Group \n The IASB issued IFRS 17 Insurance Contracts in May 2017 and Amendments to IFRS 17 in June 2020. IFRS 17 became effective on 1 January 2023. The Group has assessed all relevant contracts with policyholders. Based on this assessment, it was determined that there are no contracts that will be accounted for under IFRS 17. \n The amendments to accounting standards in the table below became applicable for the current reporting period. The Group has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar 2 income taxes as disclosed in note 7. \n \n \n \n Adopted by the Group from \n \n \n Amendments to standards \n \n \n \n \n 1 January 2023 \n \n \n Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Accounting Estimates \n \n \n \n \n 1 January 2023 \n \n \n Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements - Disclosure of Accounting Policies \n \n \n \n \n 1 January 2023 \n \n \n Amendments to IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction \n \n \n \n \n 1 January 2023 \n \n \n Amendments to IAS 12 Income Taxes - International Tax Reform - Pillar Two Model Rules \n \n \n \n 3: Significant changes in the current reporting period \n Repayment and new issue of Fixed Rate Reset Subordinated Notes \n On 18 January 2023, the Company issued £200,000,000 8.625% Fixed Rate Reset Subordinated Notes (due 18 April 2033) and received net cash proceeds of £199 million. After deducting structuring costs and professional fees, the retained cash proceeds were £197 million. The Notes are now listed and regulated under the terms of the London Stock Exchange. On 28 February 2023, the Company repaid the existing £200,000,000 4.478% Fixed Rate Reset Subordinated Notes (due 28 February 2028). \n 4: Discontinued operations, assets and liabilities held for sale, acquisitions and disposals \n 4 (a): Business disposals \n There have been no material disposals of businesses during the period ended 30 June 2023 or the year ended 31 December 2022. \n 4(b): Discontinued operations - income statement and statement of comprehensive income \n There was a loss on discontinued operations for the six months to 30 June 2022 of £1 million due to an increase in accrued expenses in relation to the Single Strategy business (sold in 2018). The additional accrual was reversed at the end of 2022. The final payment relating to the sale of the Single Strategy business was made during the six months to 30 June 2023. There were no other changes in provisions relating to discontinued operations in any of the periods reported in these condensed consolidated interim financial statements. \n 4(c): Discontinued operations - net cash flows \n The Group made the final payment of £4 million during the six months to 30 June 2023 in respect of the closure of the warranty relating to the sale of the Single Strategy business. There were no inflows or outflows of cash relating to discontinued operations during 2022. \n 4 (d): Business acquisitions \n There have been no material acquisitions of businesses during the period ended 30 June 2023 or during 2022. \n Contingent consideration arising from historical business acquisitions: \n The table below details the movements in the contingent consideration balance during the current and prior periods arising from the business acquisitions in previous periods. \n \n \n \n \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n \n \n \n 30 June \n               2023 \n \n \n 30 June \n               2022 \n \n \n 31 December \n           2022 \n \n \n \n \n Opening balance \n \n \n - \n \n \n 5 \n \n \n 5 \n \n \n \n \n Payments \n \n \n - \n \n \n (5) \n \n \n (5) \n \n \n \n \n Closing balance \n \n \n - \n \n \n - \n \n \n - \n \n \n \n Contingent consideration represents the Group's best estimate of the amount payable in relation to each acquisition discounted to net present value. The basis used for each acquisition varies but includes payments based on a percentage of the level of assets under administration, funds under management and levels of ongoing fee income at future dates. \n 4(e): Assets and liabilities held for sale \n Assets classified as held for sale at 31 December 2022 related to a leasehold interest in an office property which was vacant and was subsequently sold in April 2023. \n 5: Alternative performance measures (\"APMs\") \n 5(a): Adjusted profit before tax and reconciliation to profit after tax                                                                                          \n Basis of preparation of adjusted profit before tax \n Adjusted profit before tax is one of the Group's alternative performance measures and represents the Group's IFRS profit, adjusted for specific items that management considers to be outside of the Group's normal operations or one-off in nature, as detailed in note 5(b). Adjusted profit before tax does not provide a complete picture of the Group's financial performance, which is disclosed in the IFRS income statement, but is instead intended to provide additional comparability and understanding of the financial results. \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n £m \n \n \n \n \n \n \n \n   \n \n \n Six months 2023 \n \n \n Six months 2022 \n \n \n Full year 2022 \n \n \n \n \n \n \n \n Notes \n \n \n Total \n \n \n Continuing operations \n \n \n Discontinued operations 1 \n \n \n Total \n \n \n Total \n \n \n \n \n Affluent \n \n \n \n \n \n 54 \n \n \n 47 \n \n \n - \n \n \n 47 \n \n \n 105 \n \n \n \n \n High Net Worth \n \n \n \n \n \n 23 \n \n \n 23 \n \n \n - \n \n \n 23 \n \n \n 45 \n \n \n \n \n Head Office \n \n \n \n \n \n (1) \n \n \n (9) \n \n \n - \n \n \n (9) \n \n \n (16) \n \n \n \n \n Adjusted profit before tax \n \n \n   \n \n \n 76 \n \n \n 61 \n \n \n - \n \n \n 61 \n \n \n 134 \n \n \n \n \n Adjusting items: \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Impact of acquisition and disposal-related accounting \n \n \n 5(b)(i) \n \n \n (21) \n \n \n (22) \n \n \n - \n \n \n (22) \n \n \n (42) \n \n \n \n \n Business transformation costs \n \n \n 5(b)(ii) \n \n \n (16) \n \n \n (17) \n \n \n - \n \n \n (17) \n \n \n (30) \n \n \n \n \n Finance costs \n \n \n 5(b)(iii) \n \n \n (10) \n \n \n (5) \n \n \n - \n \n \n (5) \n \n \n (10) \n \n \n \n \n Customer remediation \n \n \n 5(b)(iv) \n \n \n (3) \n \n \n 15 \n \n \n - \n \n \n 15 \n \n \n 12 \n \n \n \n \n Voluntary customer repayments \n \n \n 5(b)(v) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (6) \n \n \n \n \n Loss on business disposals \n \n \n 4(b) \n \n \n - \n \n \n - \n \n \n (1) \n \n \n (1) \n \n \n - \n \n \n \n \n Exchange rate movement (ZAR/GBP) \n \n \n 5(b)(vi) \n \n \n (2) \n \n \n 4 \n \n \n - \n \n \n 4 \n \n \n 4 \n \n \n \n \n Policyholder tax adjustments \n \n \n 5(b)(vii) \n \n \n (18) \n \n \n 146 \n \n \n - \n \n \n 146 \n \n \n 138 \n \n \n \n \n Other adjusting items \n \n \n 5(b)(viii) \n \n \n 1 \n \n \n - \n \n \n - \n \n \n - \n \n \n (1) \n \n \n \n \n Total adjusting items before tax \n \n \n \n \n \n (69) \n \n \n 121 \n \n \n (1) \n \n \n 120 \n \n \n 65 \n \n \n \n \n Profit before tax attributable to equity holders \n \n \n   \n \n \n 7 \n \n \n 182 \n \n \n (1) \n \n \n 181 \n \n \n 199 \n \n \n \n \n Tax attributable to policyholder returns \n \n \n 7 \n \n \n 21 \n \n \n (145) \n \n \n - \n \n \n (145) \n \n \n (134) \n \n \n \n \n Income tax (expense)/credit \n \n \n 7 \n \n \n (23) \n \n \n 114 \n \n \n - \n \n \n 114 \n \n \n 110 \n \n \n \n \n Profit after tax 2 \n \n \n   \n \n \n 5 \n \n \n 151 \n \n \n (1) \n \n \n 150 \n \n \n 175 \n \n \n \n 1 Discontinued operations relate to changes in the warranty provision on the sale of the Single Strategy business. \n 2 IFRS profit after tax. \n 5(b): Adjusting items \n In determining adjusted profit before tax, the Group's IFRS profit before tax is adjusted for specific items that management considers to be outside of the Group's normal operations or one-off in nature. These are detailed below. \n 5(b)(i): Impact of acquisition and disposal-related accounting \n The Group excludes any impairment of goodwill from adjusted profit as well as the amortisation and impairment of acquired intangible assets, any acquisition costs, finance costs related to the discounting of contingent consideration and incidental items relating to past disposals. \n The effect of these adjustments to determine adjusted profit are summarised below. All adjustments are in respect of continuing operations. \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n £m \n \n \n \n \n   \n \n \n \n \n \n Six months \n  2023 \n \n \n Six months \n            2022 \n \n \n Full year \n             2022 \n \n \n \n \n Amortisation of acquired intangible assets \n \n \n \n \n \n 20 \n \n \n 22 \n \n \n 42 \n \n \n \n \n Impairment of acquired intangible assets 1 \n \n \n \n \n \n 1 \n \n \n - \n \n \n - \n \n \n \n \n Total impact of acquisition and disposal-related accounting \n \n \n 21 \n \n \n 22 \n \n \n 42 \n \n \n \n 1 The impairment of acquired intangible assets results from the impairment of specific client books held within the Affluent operating segment as the Group can no longer support the carrying value. \n   \n 5(b)(ii): Business transformation costs \n Business transformation costs include three key items: costs associated with the Business Simplification programme, Optimisation programme and investment in business costs. For the six-month period to 30 June 2023, these costs totalled £16 million (30 June 2022: £17 million, 31 December 2022: £30 million) in aggregate, the principal components of which are described below: \n Business Simplification costs - 30 June 2023: £14 million, 30 June 2022: £12 million, 31 December 2022: £17 million \n The Business Simplification programme continues to track towards the £45 million target of annualised run-rate cost savings, announced in November 2021. This target will be largely achieved by the end of 2023, and £50 million of additional costs savings are targeted to be achieved by the end of 2025. The aggregate cost to achieve the combined £95 million savings target is estimated to be £120 million. To date, the programme has delivered £33 million of annualised run-rate cost savings with an implementation cost of £31 million. \n Optimisation programme costs - 30 June 2023: £nil, 30 June 2022: £3 million, 31 December 2022: £6 million \n The Optimisation programme commenced in 2018 to provide closer business integration, create central support, rationalise technology and reduce third-party spend. The programme has now achieved its target of delivering annualised run-rate cost savings of £65 million with total implementation costs since inception of £88 million. This programme concluded in 2022 and no costs were incurred in the six-month period to 30 June 2023. \n Investment in business costs - 30 June 2023: £1 million, 30 June 2022: £nil, 31 December 2022: £4 million \n Investment in business costs of £1 million were incurred in the period to June 2023 as the Group continues to enable and support advisers and clients and improve productivity through better utilisation of technology. \n Business separation costs following the disposal of Quilter International - 30 June 2023: £1 million, 30 June 2022: £nil, 31 December 2022: £nil \n The Group sold Quilter International to Utmost Group on 30 November 2021 and entered into a Transitional Service Agreement with the acquirer. The cost to the Group of running the Transitional Service Agreement was £1 million for the six-month period to 30 June 2023. \n Restructuring costs following the disposal of Quilter Life Assurance - 30 June 2023: £nil, 30 June 2022: £2 million, 31 December 2022: £3 million \n The Transitional Service Agreement following the sale of Quilter Life Assurance in 2019 has now concluded. No restructuring costs following this disposal were incurred in the six-month period to 30 June 2023. \n 5(b)(iii): Finance costs \n The nature of much of the Group's operations means that, for management's decision-making and internal performance management, the effects of interest costs on external borrowings are removed when calculating adjusted profit. For the period ended 30 June 2023, finance costs were £10 million (30 June 2022: £5 million, 31 December 2022: £10 million). \n 5(b)(iv): Customer remediation \n Lighthouse pension transfer advice provision - 30 June 2023: £3 million, 30 June 2022: £15 million net income, 31 December 2022: £12 million net income \n The provision for the redress of British Steel Pension Scheme cases and other DB to DC pension transfer advice cases, excluding the impact of payments made, has increased by £2 million in the period, which has been recognised in the income statement as an increase in expenses (30 June 2022: £5 million credit, 31 December 2022: £4 million credit). This increase reflects the impact of the initial review for suitability of additional cases by an independent expert as part of the Group-led past business review of DB to DC pension transfer advice. During the period, £1 million of additional legal, consulting, and other costs were incurred (30 June 2022: £nil, 31 December 2022: £4 million). These items have been excluded from adjusted profit on the basis that the advice activities, to which the charge and benefit relate, took place prior to the Group's acquisition of the business. In the six months to 30 June 2022, insurance proceeds in relation to claims in respect of legal liabilities arising in connection with Lighthouse's DB to DC pension transfer advice cases were received, contributing £10 million (31 December 2022: £12 million) to the Group's profit before tax. Further details of the provision are provided in note 18 . \n 5(b)(v): Voluntary customer repayments \n For the period ended 30 June 2023, these costs were £nil (30 June 2022: £nil, 31 December 2022: £6 million) and relate to a change in business policy during H2 2022. The voluntary repayments represent amounts to be paid to customers relating to revenue previously recognised in respect of Final Plan Closure receipts. \n 5(b)(vi): Exchange rate movements (ZAR/GBP) \n For the period ended 30 June 2023, an expense of £2 million was incurred (30 June 2022: £4 million income, 31 December 2022: £4 million income) and related to a foreign exchange loss on cash held in South African Rand in preparation for payments to shareholders. In the year to 31 December 2022, these payments related to the capital return and final dividend paid in May 2022. In the period to 30 June 2023, these payments related to the final dividend paid in May 2023. Cash was converted to South African Rand upon announcement of the details of the capital return and dividend payments to provide an economic hedge for the Group. The foreign exchange movements are fully offset by an equal amount taken directly to retained earnings. \n 5(b)(vii): Policyholder tax adjustments \n For the period ended 30 June 2023, the total amount of policyholder tax adjustments to adjusted profit is £18 million credit (30 June 2022: £146 million charge, 31 December 2022: £138 million charge). Adjustments to policyholder tax are made to remove distortions arising from market volatility that can, in turn, lead to volatility in the policyholder tax adjustments between periods. The recognition of the income received from policyholders (which is included within the Group's income) to fund the policyholder tax liability can vary in timing to the recognition of the corresponding tax expense, creating volatility in the Group's IFRS profit or loss before tax attributable to equity holders. Note 7 provides further information on the impact of markets on the policyholder tax adjustment. Adjustments are also made to remove policyholder tax distortions from other non-operating adjusting items. \n 5(b)(viii): Other adjusting items \n For the period ended 30 June 2023, income of £1 million was received (30 June 2022: £nil, 31 December 2022: £1 million cost) in relation to the settlement offer received for the indemnification asset that was impaired in H2 2022. \n 5(c): Reconciliation of IFRS income and expenses to \"Total net fee revenue\" and \"Operating expenses\" within adjusted profit \n This reconciliation shows how each line of the Group's condensed consolidated IFRS income statement is allocated to the Group's APMs: Net management fees, Other revenue, Investment revenue, Total net revenue and Operating expenses, and form the Group's adjusted profit before tax for continuing operations. The IFRS income statement column in the table below, down to \"Profit before tax attributable to equity holders from continuing operations\", reconciles to each line of the Group's condensed consolidated income statement. Allocations are determined by management and aim to show the Group's sources of profit (net of relevant directly attributable expenses). These allocations remain consistent from period to period to ensure comparability, unless otherwise stated. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n Six months 2023 \n \n \n Net mgmt. fees 1 \n \n \n Other revenue 1 \n \n \n Investment revenue 1 \n \n \n Total net revenue 1 \n \n \n Operating expenses 1 \n \n \n Adjusted profit before tax \n \n \n Consol. of funds 2 \n \n \n Condensed consolidated income statement \n \n \n \n \n Income \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fee income and other income from service activities \n \n \n 268 \n \n \n 41 \n \n \n - \n \n \n 309 \n \n \n - \n \n \n 309 \n \n \n (32) \n \n \n 277 \n \n \n \n \n Investment return 3 \n \n \n 19 \n \n \n 1,007 \n \n \n 28 \n \n \n 1,054 \n \n \n - \n \n \n 1,054 \n \n \n 248 \n \n \n 1,302 \n \n \n \n \n Other income \n \n \n - \n \n \n (2) \n \n \n - \n \n \n (2) \n \n \n 4 \n \n \n 2 \n \n \n - \n \n \n 2 \n \n \n \n \n Total income \n \n \n 287 \n \n \n 1,046 \n \n \n 28 \n \n \n 1,361 \n \n \n 4 \n \n \n 1,365 \n \n \n 216 \n \n \n 1,581 \n \n \n \n \n Expenses \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Change in investment contract liabilities 3 \n \n \n (12) \n \n \n (1,006) \n \n \n - \n \n \n (1,018) \n \n \n - \n \n \n (1,018) \n \n \n - \n \n \n (1,018) \n \n \n \n \n Fee and commission expenses, and other acquisition costs \n \n \n (23) \n \n \n - \n \n \n - \n \n \n (23) \n \n \n - \n \n \n (23) \n \n \n (2) \n \n \n (25) \n \n \n \n \n Change in third-party interests in consolidated funds \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (202) \n \n \n (202) \n \n \n \n \n Other operating and administrative expenses \n \n \n (7) \n \n \n - \n \n \n - \n \n \n (7) \n \n \n (278) \n \n \n (285) \n \n \n (12) \n \n \n (297) \n \n \n \n \n Finance costs \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (11) \n \n \n (11) \n \n \n - \n \n \n (11) \n \n \n \n \n Total expenses \n \n \n (42) \n \n \n (1,006) \n \n \n - \n \n \n (1,048) \n \n \n (289) \n \n \n (1,337) \n \n \n (216) \n \n \n (1,553) \n \n \n \n \n Tax expense attributable to policyholder returns \n \n \n (21) \n \n \n - \n \n \n - \n \n \n (21) \n \n \n - \n \n \n (21) \n \n \n - \n \n \n (21) \n \n \n \n \n Profit before tax attributable to equity holders from continuing operations \n \n \n 224 \n \n \n 40 \n \n \n 28 \n \n \n 292 \n \n \n (285) \n \n \n 7 \n \n \n - \n \n \n 7 \n \n \n \n \n Adjusting items: \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Impact of acquisition and disposal-related accounting \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 21 \n \n \n 21 \n \n \n   \n \n \n   \n \n \n \n \n Business transformation costs \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 16 \n \n \n 16 \n \n \n   \n \n \n   \n \n \n \n \n Finance costs \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 10 \n \n \n 10 \n \n \n   \n \n \n   \n \n \n \n \n Customer remediation \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 3 \n \n \n 3 \n \n \n   \n \n \n   \n \n \n \n \n Exchange rate movement (ZAR/GBP) \n \n \n - \n \n \n 2 \n \n \n - \n \n \n 2 \n \n \n - \n \n \n 2 \n \n \n   \n \n \n   \n \n \n \n \n Policyholder tax adjustments \n \n \n 18 \n \n \n - \n \n \n - \n \n \n 18 \n \n \n - \n \n \n 18 \n \n \n   \n \n \n   \n \n \n \n \n Other adjusting items \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1) \n \n \n (1) \n \n \n   \n \n \n   \n \n \n \n \n Adjusting items \n \n \n 18 \n \n \n 2 \n \n \n - \n \n \n 20 \n \n \n 49 \n \n \n 69 \n \n \n   \n \n \n   \n \n \n \n \n Adjusted profit before tax - continuing operations \n \n \n 242 \n \n \n 42 \n \n \n 28 \n \n \n 312 \n \n \n (236) \n \n \n 76 \n \n \n   \n \n \n   \n \n \n \n 1 The APMs \"Net management fees\", \"Other revenue\", \"Investment revenue\", \"Total net revenue\" and \"Operating expenses\" are commented on within the Financial review. In the financial statements for the year to 31 December 2022 and in the June 2022 interim financial statements, interest income on shareholder cash and cash equivalents and interest income on customer cash and cash equivalents was previously presented within \"Other revenue\". For the six months to 30 June 2023, to provide additional information to the users of the Group's financial reporting, interest income on shareholder cash and cash equivalents has been presented separately as Investment revenue and interest income on customer cash and cash equivalents has been presented within Net management fees. Disclosures for prior periods have been re-presented to ensure comparability. \n 2 Consolidation of funds shows the grossing up impact to the Group's condensed consolidated income statement as a result of the consolidation of funds requirements, as described within note 5(a) of the Group's 2022 Annual Report. This grossing up is excluded from the Group's adjusted profit. \n 3 Investment return of £19 million less £12 million change in investment contract liabilities, as reported within net management fees, represents £7 million interest income on customer cash and cash equivalents which was retained by the Group for the six-month period to 30 June 2023. The £28 million investment return, as reported within investment revenue, relates to interest income on shareholder cash and cash equivalents. \n   \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n Six months 2022 \n \n \n Net mgmt. fees 1 \n \n \n Other revenue 1 \n \n \n Investment revenue 1 \n \n \n Total net revenue 1 \n \n \n Operating expenses 1 \n \n \n Adjusted profit before tax \n \n \n Consol. of funds 2 \n \n \n Condensed consolidated income statement \n \n \n \n \n Income \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fee income and other income from service activities \n \n \n 277 \n \n \n 50 \n \n \n - \n \n \n 327 \n \n \n - \n \n \n 327 \n \n \n (35) \n \n \n 292 \n \n \n \n \n Investment return 3 \n \n \n 2 \n \n \n (4,824) \n \n \n 3 \n \n \n (4,819) \n \n \n - \n \n \n (4,819) \n \n \n (507) \n \n \n (5,326) \n \n \n \n \n Other income \n \n \n - \n \n \n 16 \n \n \n - \n \n \n 16 \n \n \n 4 \n \n \n 20 \n \n \n 1 \n \n \n 21 \n \n \n \n \n Total income \n \n \n 279 \n \n \n (4,758) \n \n \n 3 \n \n \n (4,476) \n \n \n 4 \n \n \n (4,472) \n \n \n (541) \n \n \n (5,013) \n \n \n \n \n Expenses \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Change in investment contract liabilities \n \n \n - \n \n \n 4,825 \n \n \n - \n \n \n 4,825 \n \n \n - \n \n \n 4,825 \n \n \n - \n \n \n 4,825 \n \n \n \n \n Fee and commission expenses, and other acquisition costs \n \n \n (23) \n \n \n - \n \n \n - \n \n \n (23) \n \n \n - \n \n \n (23) \n \n \n (3) \n \n \n (26) \n \n \n \n \n Change in third-party interests in consolidated funds \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 555 \n \n \n 555 \n \n \n \n \n Other operating and administrative expenses \n \n \n (8) \n \n \n - \n \n \n - \n \n \n (8) \n \n \n (278) \n \n \n (286) \n \n \n (11) \n \n \n (297) \n \n \n \n \n Finance costs \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (7) \n \n \n (7) \n \n \n - \n \n \n (7) \n \n \n \n \n Total expenses \n \n \n (31) \n \n \n 4,825 \n \n \n - \n \n \n 4,794 \n \n \n (285) \n \n \n 4,509 \n \n \n 541 \n \n \n 5,050 \n \n \n \n \n Tax credit attributable to policyholder returns \n \n \n 145 \n \n \n - \n \n \n - \n \n \n 145 \n \n \n - \n \n \n 145 \n \n \n - \n \n \n 145 \n \n \n \n \n Profit before tax attributable to equity holders from continuing operations \n \n \n 393 \n \n \n 67 \n \n \n 3 \n \n \n 463 \n \n \n (281) \n \n \n 182 \n \n \n - \n \n \n 182 \n \n \n \n \n Adjusting items: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Impact of acquisition and disposal-related accounting \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 22 \n \n \n 22 \n \n \n \n \n \n \n \n \n \n \n Business transformation costs \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 17 \n \n \n 17 \n \n \n \n \n \n \n \n \n \n \n Finance costs \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 5 \n \n \n 5 \n \n \n \n \n \n \n \n \n \n \n Customer remediation \n \n \n - \n \n \n (10) \n \n \n - \n \n \n (10) \n \n \n (5) \n \n \n (15) \n \n \n \n \n \n \n \n \n \n \n Exchange rate movement (ZAR/GBP) \n \n \n - \n \n \n (4) \n \n \n - \n \n \n (4) \n \n \n - \n \n \n (4) \n \n \n \n \n \n \n \n \n \n \n Policyholder tax adjustments \n \n \n (146) \n \n \n - \n \n \n - \n \n \n (146) \n \n \n - \n \n \n (146) \n \n \n \n \n \n \n \n \n \n \n Adjusting items \n \n \n (146) \n \n \n (14) \n \n \n - \n \n \n (160) \n \n \n 39 \n \n \n (121) \n \n \n \n \n \n \n \n \n \n \n Adjusted profit before tax - continuing operations \n \n \n 247 \n \n \n 53 \n \n \n 3 \n \n \n 303 \n \n \n (242) \n \n \n 61 \n \n \n \n \n \n \n \n \n \n 1 The APMs \"Net management fees\", \"Other revenue\", \"Investment revenue\", \"Total net revenue\" and \"Operating expenses\" are commented on within the Financial review. In the financial statements for the year to 31 December 2022 and in the June 2022 interim financial statements, interest income on shareholder cash and cash equivalents and interest income on customer cash and cash equivalents was previously presented within \"Other revenue\". For the six months to 30 June 2023, to provide additional information to the users of the Group's financial reporting, interest income on shareholder cash and cash equivalents has been presented separately as Investment revenue and interest income on customer cash and cash equivalents has been presented within Net management fees. Disclosures for prior periods have been re-presented to ensure comparability. \n 2 Consolidation of funds shows the grossing up impact to the Group's condensed consolidated income statement as a result of the consolidation of funds requirements, as described within note 5(a) of the Group's 2022 Annual Report. This grossing up is excluded from the Group's adjusted profit. \n 3 Investment return of £2 million, as reported within net management fees, represents the interest income on customer cash and cash equivalents which was retained by the Group for the six-month period to 30 June 2022. The £3 million investment return, as reported within investment revenue, relates to interest income on shareholder cash and cash equivalents. \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n Year ended 31 December 2022 \n \n \n Net mgmt. fees 1 \n \n \n Other revenue 1 \n \n \n Investment revenue 1 \n \n \n Total net revenue 1 \n \n \n Operating expenses 1 \n \n \n Adjusted profit before tax \n \n \n Consol. of funds 2 \n \n \n Condensed consolidated income statement \n \n \n \n \n Income \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Fee income and other income from service activities \n \n \n 548 \n \n \n 95 \n \n \n - \n \n \n 643 \n \n \n - \n \n \n 643 \n \n \n (62) \n \n \n 581 \n \n \n \n \n Investment return 3 \n \n \n 12 \n \n \n (4,320) \n \n \n 16 \n \n \n (4,292) \n \n \n - \n \n \n (4,292) \n \n \n (357) \n \n \n (4,649) \n \n \n \n \n Other income \n \n \n - \n \n \n 5 \n \n \n - \n \n \n 5 \n \n \n 21 \n \n \n 26 \n \n \n 2 \n \n \n 28 \n \n \n \n \n Total income \n \n \n 560 \n \n \n (4,220) \n \n \n 16 \n \n \n (3,644) \n \n \n 21 \n \n \n (3,623) \n \n \n (417) \n \n \n (4,040) \n \n \n \n \n Expenses \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Change in investment contract liabilities 3 \n \n \n (5) \n \n \n 4,323 \n \n \n - \n \n \n 4,318 \n \n \n - \n \n \n 4,318 \n \n \n - \n \n \n 4,318 \n \n \n \n \n Fee and commission expenses, and other acquisition costs \n \n \n (46) \n \n \n 1 \n \n \n - \n \n \n (45) \n \n \n - \n \n \n (45) \n \n \n (9) \n \n \n (54) \n \n \n \n \n Change in third-party interests in consolidated funds \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 438 \n \n \n 438 \n \n \n \n \n Other operating and administrative expenses \n \n \n (15) \n \n \n - \n \n \n - \n \n \n (15) \n \n \n (557) \n \n \n (572) \n \n \n (12) \n \n \n (584) \n \n \n \n \n Finance costs \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (13) \n \n \n (13) \n \n \n - \n \n \n (13) \n \n \n \n \n Total expenses \n \n \n (66) \n \n \n 4,324 \n \n \n - \n \n \n 4,258 \n \n \n (570) \n \n \n 3,688 \n \n \n 417 \n \n \n 4,105 \n \n \n \n \n Tax credit attributable to policyholder returns \n \n \n 134 \n \n \n - \n \n \n - \n \n \n 134 \n \n \n - \n \n \n 134 \n \n \n - \n \n \n 134 \n \n \n \n \n Profit before tax attributable to equity holders from continuing operations \n \n \n 628 \n \n \n 104 \n \n \n 16 \n \n \n 748 \n \n \n (549) \n \n \n 199 \n \n \n - \n \n \n 199 \n \n \n \n \n Adjusting items: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Impact of acquisition and disposal-related accounting \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 42 \n \n \n 42 \n \n \n \n \n \n \n \n \n \n \n Business transformation costs \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 30 \n \n \n 30 \n \n \n \n \n \n \n \n \n \n \n Finance costs \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 10 \n \n \n 10 \n \n \n \n \n \n \n \n \n \n \n Customer remediation \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (12) \n \n \n (12) \n \n \n \n \n \n \n \n \n \n \n Voluntary customer repayments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 6 \n \n \n 6 \n \n \n \n \n \n \n \n \n \n \n Exchange rate movement (ZAR/GBP) \n \n \n - \n \n \n (4) \n \n \n - \n \n \n (4) \n \n \n - \n \n \n (4) \n \n \n \n \n \n \n \n \n \n \n Policyholder tax adjustments \n \n \n (138) \n \n \n - \n \n \n - \n \n \n (138) \n \n \n - \n \n \n (138) \n \n \n \n \n \n \n \n \n \n \n Other adjusting items \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1 \n \n \n 1 \n \n \n \n \n \n \n \n \n \n \n Adjusting items \n \n \n (138) \n \n \n (4) \n \n \n - \n \n \n (142) \n \n \n 77 \n \n \n (65) \n \n \n \n \n \n \n \n \n \n \n Adjusted profit before tax - continuing operations \n \n \n 490 \n \n \n 100 \n \n \n 16 \n \n \n 606 \n \n \n (472) \n \n \n 134 \n \n \n \n \n \n \n \n \n \n 1 The APMs \"Net management fees\", \"Other revenue\", \"Investment revenue\", \"Total net revenue\" and \"Operating expenses\" are commented on within the Financial review. In the financial statements for the year to 31 December 2022 and in the June 2022 interim financial statements, interest income on shareholder cash and cash equivalents and interest income on customer cash and cash equivalents was previously presented within \"Other revenue\". For the six months to 30 June 2023, to provide additional information to the users of the Group's financial reporting, interest income on shareholder cash and cash equivalents has been presented separately as Investment revenue and interest income on customer cash and cash equivalents has been presented within Net management fees. Disclosures for prior periods have been re-presented to ensure comparability. \n 2 Consolidation of funds shows the grossing up impact to the Group's condensed consolidated income statement as a result of the consolidation of funds requirements, as described within note 5(a) of the Group's Annual Report. This grossing up is excluded from the Group's adjusted profit. \n 3 Investment return of £12 million less £5 million change in investment contract liabilities, as reported within net management fees, represents the £7 million interest income on customer cash and cash equivalents which was retained by the Group for the year ended 31 December 2022. The £16 million investment return, as reported within investment revenue, relates to interest income on shareholder cash and cash equivalents. \n 6: Segmental information \n 6(a): Segmental presentation \n The Group's operating segments comprise High Net Worth and Affluent, which is consistent with the manner in which the Group is structured and managed. For all reporting periods, these segments have been classified as continuing operations in the condensed consolidated income statement. Head Office includes certain revenues and central costs that are not allocated to the segments. There have been no changes to the basis of segmentation for the periods presented within these condensed consolidated interim financial statements. \n Adjusted profit before tax is an APM reported to the Group's management and Board. Management and the Board use additional performance indicators to assess the performance of each of the segments, including net client cash flows, assets under management and administration, total net revenue and operating margin. \n Consistent with internal reporting, income and expenses that are not directly attributable to a particular segment are allocated between segments where appropriate. The Group accounts for inter-segment income and transfers as if the transactions were with third parties at current market prices. Intra-group recharges in respect of operating and administration expenses within businesses disclosed as discontinued operations are not adjusted for potential future changes to the level of remaining costs following the disposal of those businesses. \n The segmental information in this note reflects the adjusted and IFRS profit measures for each operating segment as provided to management and the Board. Income is analysed in further detail for each operating segment in note 6(b) . \n Continuing operations: \n High Net Worth \n This segment comprises Quilter Cheviot and Quilter Private Client Advisers. \n Quilter Cheviot provides discretionary investment management predominantly in the United Kingdom with bespoke investment portfolios tailored to the individual needs of High Net Worth clients, charities, companies and institutions through a network of branches in London and the regions. Investment management services are also provided by operations in the Channel Islands and Ireland. \n Quilter Private Client Advisers provide financial advice for protection, mortgages, savings, investments and pensions predominantly to High Net Worth clients. \n Affluent \n This segment is comprised of Quilter Investment Platform, Quilter Investors and Quilter Financial Planning. \n Quilter Investment Platform is a leading investment platform provider of advice-based wealth management products and services in the UK, which serves a largely Affluent client base through advised multi-channel distribution. \n Quilter Investors is a leading provider of investment solutions in the UK multi-asset market. It develops and manages investment solutions in the form of funds for the Group and third-party clients. It has several fund ranges which vary in breadth of underlying asset class. \n Quilter Financial Planning is a restricted and independent financial adviser network including Quilter Financial Advisers and Lighthouse, providing mortgage and financial planning advice and financial solutions for both individuals and businesses through a network of intermediaries. It operates across all markets, from wealth management and retirement planning advice through to dealing with property wealth and personal and business protection needs. \n Head Office \n In addition to the Group's two operating segments, Head Office comprises the investment return on centrally held assets, central support function expenses, central core structural borrowings and certain tax balances. \n 6(b)(i): Adjusted profit statement - segmental information for the period ended 30 June 2023 \n The table below presents the Group's continuing operations split by operating segment, reconciling the segmented IFRS income statement (to \"Profit/(loss) before tax attributable to equity holders from continuing operations\") to adjusted profit before tax. \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n   \n \n \n   \n \n \n Operating segments \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n Notes \n \n \n Affluent \n \n \n High \n Net Worth \n \n \n Head Office \n \n \n Consolidation adjustments 1 \n \n \n Condensed consolidated income statement \n \n \n \n \n Income \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Premium-based fees \n \n \n \n \n \n 32 \n \n \n 10 \n \n \n - \n \n \n - \n \n \n 42 \n \n \n \n \n Fund-based fees \n \n \n \n \n \n 172 \n \n \n 89 \n \n \n - \n \n \n (32) \n \n \n 229 \n \n \n \n \n Fixed fees \n \n \n \n \n \n 1 \n \n \n - \n \n \n - \n \n \n - \n \n \n 1 \n \n \n \n \n Other fee and commission income \n \n \n \n \n \n 5 \n \n \n - \n \n \n - \n \n \n - \n \n \n 5 \n \n \n \n \n Fee income and other income from service activities \n \n \n \n \n \n 210 \n \n \n 99 \n \n \n - \n \n \n (32) \n \n \n 277 \n \n \n \n \n Investment return 2 \n \n \n \n \n \n 1,036 \n \n \n 9 \n \n \n 12 \n \n \n 245 \n \n \n 1,302 \n \n \n \n \n Other income \n \n \n \n \n \n 49 \n \n \n - \n \n \n (2) \n \n \n (45) \n \n \n 2 \n \n \n \n \n Segment income \n \n \n   \n \n \n 1,295 \n \n \n 108 \n \n \n 10 \n \n \n 168 \n \n \n 1,581 \n \n \n \n \n Expenses \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Change in investment contract liabilities 2 \n \n \n \n \n \n (1,018) \n \n \n - \n \n \n - \n \n \n - \n \n \n (1,018) \n \n \n \n \n Fee and commission expenses, and other acquisition costs \n \n \n \n \n \n (24) \n \n \n - \n \n \n - \n \n \n (1) \n \n \n (25) \n \n \n \n \n Change in third-party interests in consolidated funds \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n (202) \n \n \n (202) \n \n \n \n \n Other operating and administrative expenses \n \n \n \n \n \n (202) \n \n \n (102) \n \n \n (25) \n \n \n 32 \n \n \n (297) \n \n \n \n \n Finance costs \n \n \n \n \n \n (1) \n \n \n - \n \n \n (13) \n \n \n 3 \n \n \n (11) \n \n \n \n \n Segment expenses \n \n \n   \n \n \n (1,245) \n \n \n (102) \n \n \n (38) \n \n \n (168) \n \n \n (1,553) \n \n \n \n \n Profit/(loss) before tax from continuing operations \n \n \n   \n \n \n 50 \n \n \n 6 \n \n \n (28) \n \n \n - \n \n \n 28 \n \n \n \n \n Tax expense attributable to policyholder returns \n \n \n \n \n \n (21) \n \n \n - \n \n \n - \n \n \n - \n \n \n (21) \n \n \n \n \n Profit/(loss) before tax attributable to equity holders from continuing operations \n \n \n \n \n \n 29 \n \n \n 6 \n \n \n (28) \n \n \n - \n \n \n 7 \n \n \n \n \n Adjusted for non-operating items: \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Impact of acquisition and disposal-related accounting \n \n \n 5(b)(i) \n \n \n 4 \n \n \n 17 \n \n \n - \n \n \n - \n \n \n 21 \n \n \n \n \n Business transformation costs \n \n \n 5(b)(ii) \n \n \n - \n \n \n 1 \n \n \n 15 \n \n \n - \n \n \n 16 \n \n \n \n \n Finance costs \n \n \n 5(b)(iii) \n \n \n - \n \n \n - \n \n \n 10 \n \n \n - \n \n \n 10 \n \n \n \n \n Customer remediation \n \n \n 5(b)(iv) \n \n \n 3 \n \n \n - \n \n \n - \n \n \n - \n \n \n 3 \n \n \n \n \n Exchange rate movement (ZAR/GBP) \n \n \n 5(b)(vi) \n \n \n - \n \n \n - \n \n \n 2 \n \n \n - \n \n \n 2 \n \n \n \n \n Policyholder tax adjustments \n \n \n 5(b)(vii) \n \n \n 18 \n \n \n - \n \n \n - \n \n \n - \n \n \n 18 \n \n \n \n \n Other adjusting items \n \n \n 5(b)(viii) \n \n \n - \n \n \n (1) \n \n \n - \n \n \n - \n \n \n (1) \n \n \n \n \n Adjusting items before tax \n \n \n \n \n \n 25 \n \n \n 17 \n \n \n 27 \n \n \n - \n \n \n 69 \n \n \n \n \n Adjusted profit before tax - continuing operations \n \n \n   \n \n \n 54 \n \n \n 23 \n \n \n (1) \n \n \n - \n \n \n 76 \n \n \n \n 1 Consolidation adjustments comprise the elimination of inter-segment transactions and the consolidation of investment funds. \n 2 Investment return and change in investment contract liabilities includes net £7 million interest income on customer cash and cash equivalents retained by the Group. I nvestment return total also includes £28 million interest income on shareholder cash and cash equivalents. \n 6(b)(ii): Adjusted profit statement - segmental information for the six months ended 30 June 2022 \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n   \n \n \n   \n \n \n Operating segments \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n Notes \n \n \n Affluent \n \n \n High Net Worth \n \n \n Head Office \n \n \n Consolidation adjustments 1 \n \n \n Condensed consolidated income statement \n \n \n \n \n Income \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Premium-based fees \n \n \n \n \n \n 38 \n \n \n 12 \n \n \n - \n \n \n - \n \n \n 50 \n \n \n \n \n Fund-based fees \n \n \n \n \n \n 180 \n \n \n 93 \n \n \n - \n \n \n (35) \n \n \n 238 \n \n \n \n \n Fixed fees \n \n \n \n \n \n 1 \n \n \n - \n \n \n - \n \n \n - \n \n \n 1 \n \n \n \n \n Other fee and commission income \n \n \n \n \n \n 3 \n \n \n - \n \n \n - \n \n \n - \n \n \n 3 \n \n \n \n \n Fee income and other income from service activities \n \n \n \n \n \n 222 \n \n \n 105 \n \n \n - \n \n \n (35) \n \n \n 292 \n \n \n \n \n Investment return 2 \n \n \n \n \n \n (4,822) \n \n \n 3 \n \n \n 1 \n \n \n (508) \n \n \n (5,326) \n \n \n \n \n Other income \n \n \n \n \n \n 52 \n \n \n 1 \n \n \n 5 \n \n \n (37) \n \n \n 21 \n \n \n \n \n Segment income \n \n \n   \n \n \n (4,548) \n \n \n 109 \n \n \n 6 \n \n \n (580) \n \n \n (5,013) \n \n \n \n \n Expenses \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Change in investment contract liabilities \n \n \n \n \n \n 4,825 \n \n \n - \n \n \n - \n \n \n - \n \n \n 4,825 \n \n \n \n \n Fee and commission expenses, and other acquisition costs \n \n \n \n \n \n (23) \n \n \n - \n \n \n - \n \n \n (3) \n \n \n (26) \n \n \n \n \n Change in third-party interests in consolidated funds \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n 555 \n \n \n 555 \n \n \n \n \n Other operating and administrative expenses \n \n \n \n \n \n (203) \n \n \n (103) \n \n \n (19) \n \n \n 28 \n \n \n (297) \n \n \n \n \n Finance costs \n \n \n \n \n \n (2) \n \n \n - \n \n \n (5) \n \n \n - \n \n \n (7) \n \n \n \n \n Segment expenses \n \n \n   \n \n \n 4,597 \n \n \n (103) \n \n \n (24) \n \n \n 580 \n \n \n 5,050 \n \n \n \n \n Profit/(loss) before tax from continuing operations \n \n \n \n \n \n 49 \n \n \n 6 \n \n \n (18) \n \n \n - \n \n \n 37 \n \n \n \n \n Tax credit attributable to policyholder returns \n \n \n \n \n \n 145 \n \n \n - \n \n \n - \n \n \n - \n \n \n 145 \n \n \n \n \n Profit/(loss) before tax attributable to equity holders from continuing operations \n \n \n \n \n \n 194 \n \n \n 6 \n \n \n (18) \n \n \n - \n \n \n 182 \n \n \n \n \n Adjusted for non-operating items: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Impact of acquisition and disposal-related accounting \n \n \n 5(b)(i) \n \n \n 5 \n \n \n 17 \n \n \n - \n \n \n - \n \n \n 22 \n \n \n \n \n Business transformation costs \n \n \n 5(b)(ii) \n \n \n 9 \n \n \n - \n \n \n 8 \n \n \n - \n \n \n 17 \n \n \n \n \n Finance costs \n \n \n 5(b)(iii) \n \n \n - \n \n \n - \n \n \n 5 \n \n \n - \n \n \n 5 \n \n \n \n \n Customer remediation \n \n \n 5(b)(iv) \n \n \n (15) \n \n \n - \n \n \n - \n \n \n - \n \n \n (15) \n \n \n \n \n Exchange rate movement (ZAR/GBP) \n \n \n 5(b)(vi) \n \n \n - \n \n \n - \n \n \n (4) \n \n \n \n \n \n (4) \n \n \n \n \n Policyholder tax adjustments \n \n \n 5(b)(vii) \n \n \n (146) \n \n \n - \n \n \n - \n \n \n - \n \n \n (146) \n \n \n \n \n Adjusting items before tax \n \n \n \n \n \n (147) \n \n \n 17 \n \n \n 9 \n \n \n - \n \n \n (121) \n \n \n \n \n Adjusted profit before tax - continuing operations \n \n \n   \n \n \n 47 \n \n \n 23 \n \n \n (9) \n \n \n - \n \n \n 61 \n \n \n \n 1 C onsolidation adjustments comprise the elimination of inter-segment transactions and the consolidation of investment funds. \n 2 Investment return includes net £2 million interest income on customer cash and cash equivalents retained by the Group. I nvestment return total also includes £3 million interest income on shareholder cash and cash equivalents. \n   \n 6(b)(iii): Adjusted profit statement - segmental information for the year ended 31 December 2022 \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n £m \n \n \n \n \n   \n \n \n   \n \n \n Operating segments \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n Notes \n \n \n Affluent \n \n \n High \n          Net Worth \n \n \n Head Office \n \n \n Consolidation adjustments 1 \n \n \n Condensed consolidated income statement \n \n \n \n \n Income \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Premium-based fees \n \n \n \n \n \n 75 \n \n \n 21 \n \n \n - \n \n \n - \n \n \n 96 \n \n \n \n \n Fund-based fees \n \n \n \n \n \n 356 \n \n \n 181 \n \n \n - \n \n \n (62) \n \n \n 475 \n \n \n \n \n Fixed fees \n \n \n \n \n \n 2 \n \n \n - \n \n \n - \n \n \n - \n \n \n 2 \n \n \n \n \n Other fee and commission income \n \n \n \n \n \n 8 \n \n \n - \n \n \n - \n \n \n - \n \n \n 8 \n \n \n \n \n Fee income and other income from service activities \n \n \n \n \n \n 441 \n \n \n 202 \n \n \n - \n \n \n (62) \n \n \n 581 \n \n \n \n \n Investment return 2 \n \n \n \n \n \n (4,307) \n \n \n 9 \n \n \n 8 \n \n \n (359) \n \n \n (4,649) \n \n \n \n \n Other income \n \n \n \n \n \n 112 \n \n \n 3 \n \n \n 5 \n \n \n (92) \n \n \n 28 \n \n \n \n \n Segment income \n \n \n   \n \n \n (3,754) \n \n \n 214 \n \n \n 13 \n \n \n (513) \n \n \n (4,040) \n \n \n \n \n Expenses \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Change in investment contract liabilities 2 \n \n \n \n \n \n 4,318 \n \n \n - \n \n \n - \n \n \n - \n \n \n 4,318 \n \n \n \n \n Fee and commission expenses, and other acquisition costs \n \n \n \n \n \n (46) \n \n \n - \n \n \n - \n \n \n (8) \n \n \n (54) \n \n \n \n \n Change in third-party interests in consolidated funds \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n 438 \n \n \n 438 \n \n \n \n \n Other operating and administrative expenses \n \n \n \n \n \n (410) \n \n \n (202) \n \n \n (53) \n \n \n 81 \n \n \n (584) \n \n \n \n \n Finance costs \n \n \n \n \n \n (3) \n \n \n - \n \n \n (12) \n \n \n 2 \n \n \n (13) \n \n \n \n \n Segment expenses \n \n \n   \n \n \n 3,859 \n \n \n (202) \n \n \n (65) \n \n \n 513 \n \n \n 4,105 \n \n \n \n \n Profit/(loss) before tax from continuing operations \n \n \n \n \n \n 105 \n \n \n 12 \n \n \n (52) \n \n \n - \n \n \n 65 \n \n \n \n \n Tax credit attributable to policyholder returns \n \n \n \n \n \n 134 \n \n \n - \n \n \n - \n \n \n - \n \n \n 134 \n \n \n \n \n Profit/(loss) before tax attributable to equity holders from continuing operations \n \n \n \n \n \n 239 \n \n \n 12 \n \n \n (52) \n \n \n - \n \n \n 199 \n \n \n \n \n Adjusted for non-operating items: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Impact of acquisition and disposal-related accounting \n \n \n 5(b)(i) \n \n \n 10 \n \n \n 32 \n \n \n - \n \n \n - \n \n \n 42 \n \n \n \n \n Business transformation costs \n \n \n 5(b)(ii) \n \n \n - \n \n \n - \n \n \n 30 \n \n \n - \n \n \n 30 \n \n \n \n \n Finance costs \n \n \n 5(b)(iii) \n \n \n - \n \n \n - \n \n \n 10 \n \n \n - \n \n \n 10 \n \n \n \n \n Customer remediation \n \n \n 5(b)(iv) \n \n \n (12) \n \n \n - \n \n \n - \n \n \n - \n \n \n (12) \n \n \n \n \n Voluntary customer repayments \n \n \n 5(b)(v) \n \n \n 6 \n \n \n - \n \n \n - \n \n \n - \n \n \n 6 \n \n \n \n \n Exchange rate movement (ZAR/GBP) \n \n \n 5(b)(vi) \n \n \n - \n \n \n - \n \n \n (4) \n \n \n - \n \n \n (4) \n \n \n \n \n Policyholder tax adjustments \n \n \n 5(b)(vii) \n \n \n (138) \n \n \n - \n \n \n - \n \n \n - \n \n \n (138) \n \n \n \n \n Other adjusting items \n \n \n 5(b)(viii) \n \n \n - \n \n \n 1 \n \n \n - \n \n \n - \n \n \n 1 \n \n \n \n \n Adjusting items before tax \n \n \n \n \n \n (134) \n \n \n 33 \n \n \n 36 \n \n \n - \n \n \n (65) \n \n \n \n \n Adjusted profit before tax - continuing operations \n \n \n   \n \n \n 105 \n \n \n 45 \n \n \n (16) \n \n \n - \n \n \n 134 \n \n \n \n 1 Consolidation adjustments comprise the elimination of inter-segment transactions and the consolidation of investment funds. \n 2 Investment return and change in investment contract liabilities includes net £7 million interest income on customer cash and cash equivalents retained by the Group . I nvestment return total also includes £16 million interest income on shareholder cash and cash equivalents. \n   \n 7: Tax \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n £m \n \n \n \n \n   \n \n \n \n \n \n Six months \n  2023 \n \n \n Six months \n      2022 \n \n \n Full year \n        2022 \n \n \n \n \n Current tax \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n United Kingdom \n \n \n \n \n \n - \n \n \n 20 \n \n \n 12 \n \n \n \n \n Overseas tax \n \n \n \n \n \n - \n \n \n - \n \n \n 1 \n \n \n \n \n Total current tax charge \n \n \n   \n \n \n - \n \n \n 20 \n \n \n 13 \n \n \n \n \n Deferred tax \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Origination and reversal of temporary differences \n \n \n \n \n \n 23 \n \n \n (133) \n \n \n (120) \n \n \n \n \n Effect on deferred tax of changes in tax rates \n \n \n \n \n \n 1 \n \n \n (1) \n \n \n (1) \n \n \n \n \n Adjustments to deferred tax in respect of prior periods \n \n \n \n \n \n (1) \n \n \n - \n \n \n (2) \n \n \n \n \n Total deferred tax charge/(credit) \n \n \n   \n \n \n 23 \n \n \n (134) \n \n \n (123) \n \n \n \n \n Total tax charged/(credited) to income statement - continuing operations \n \n \n   \n \n \n 23 \n \n \n (114) \n \n \n (110) \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Attributable to policyholder returns - continuing operations \n \n \n \n \n \n 21 \n \n \n (145) \n \n \n (134) \n \n \n \n \n Attributable to equity holders - continuing operations \n \n \n \n \n \n 2 \n \n \n 31 \n \n \n 24 \n \n \n \n \n Total tax charged/(credited) to income statement \n \n \n \n \n \n 23 \n \n \n (114) \n \n \n (110) \n \n \n \n Policyholder tax \n Certain products are subject to tax on policyholders' investment returns. This \"policyholder tax\" is an element of total tax expense. To make the tax expense more meaningful, tax attributable to policyholder returns and tax attributable to equity holders' profits are shown separately in the condensed consolidated income statement. \n The tax attributable to policyholder returns is the amount payable in the period plus the movement of amounts expected to be payable in future periods. The remainder of the tax expense is attributed to shareholders as tax attributable to equity holders. \n The Group's income tax charge on continuing operations was £23 million for the period ended 30 June 2023, compared to a credit of £114 million for the six-month period to 30 June 2022. This income tax charge can vary significantly period-on-period as a result of market volatility and the impact this has on policyholder tax. The recognition of the income received from policyholders to fund the policyholder tax liability (which is included within the Group's income) can vary in timing to the recognition of the corresponding policyholder tax expense, creating volatility in the Group's IFRS profit before tax attributable to equity holders. An adjustment is made to adjusted profit to remove these distortions, as explained further in note 5(b)(vii). \n Market movements during the period ended 30 June 2023 resulted in investment gains of £80 million on products subject to policyholder tax. The gain is a component of the total \"investment return\" gain of £1,302 million shown in the condensed consolidated income statement. The impact of the £80 million investment return gain is the primary reason for the £21 million tax charge attributable to policyholder returns in respect of the continuing operations for the period ended 30 June 2023 (30 June 2022: £145 million credit). \n UK Corporation Tax rate \n The main rate of Corporation Tax increased from 1 April 2023 from 19% to 25%. The blended rate of 23.5% has been used in calculating current tax for 2023 and any deferred tax assets and liabilities have been recognised at the new rate of 25%. \n Top-up tax \n On 20 June 2023, The Finance (No.2) Act 2023 was substantively enacted in the UK, introducing a global minimum effective tax rate of 15%. The legislation implements a domestic top-up tax and a multinational top-up tax, effective for accounting periods starting on or after 31 December 2023. The Group has applied the exception under the IAS 12 amendment to recognising and disclosing information about deferred tax assets and liabilities related to top-up income taxes. \n 8: Earnings per share \n The Group calculates earnings per share (\"EPS\") on a number of different bases. IFRS requires the calculation of basic and diluted EPS. Adjusted EPS reflects earnings that are consistent with the Group's adjusted profit measure and Headline earnings per share (\"HEPS\") is a requirement of the Johannesburg Stock Exchange. \n The bases for the calculation of the Group's EPS are disclosed in note 5(t) of the Group's 2022 Annual Report. \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n Pence \n \n \n \n \n   \n \n \n Framework \n \n \n Notes \n \n \n Six months \n      2023 \n \n \n Six months \n      2022 1 \n \n \n Full year \n       2022 \n \n \n \n \n Basic earnings per share \n \n \n IFRS \n \n \n 8(b) \n \n \n 0.4 \n \n \n 9.8 \n \n \n 12.2 \n \n \n \n \n Diluted basic earnings per share \n \n \n IFRS \n \n \n 8(b) \n \n \n 0.4 \n \n \n 9.7 \n \n \n 12.0 \n \n \n \n \n Adjusted basic earnings per share \n \n \n Group policy \n \n \n 8(b) \n \n \n 4.3 \n \n \n 3.3 \n \n \n 8.0 \n \n \n \n \n Adjusted diluted earnings per share \n \n \n Group policy \n \n \n 8(b) \n \n \n 4.3 \n \n \n 3.2 \n \n \n 7.9 \n \n \n \n \n Headline basic earnings per share (net of tax) 2 \n \n \n JSE Listing Requirements \n \n \n 8(c) \n \n \n 0.4 \n \n \n 10.2 \n \n \n 12.6 \n \n \n \n \n Headline diluted earnings per share (net of tax) 2 \n \n \n JSE Listing Requirements \n \n \n 8(c) \n \n \n 0.4 \n \n \n 10.1 \n \n \n 12.4 \n \n \n \n 1 The Financial Reporting Council published a thematic review on earnings per share in September 2022. The EPS figures presented above for the six months to 30 June 2022 and the year to 31 December 2022 were calculated using the weighted average number of shares which was determined without making any retrospective adjustment for the impact of the Share Consolidation completed in May 2022 in line with the FRC's guidance and IAS 33 Earnings per Share. In the Group's interim financial statements for the six months to 30 June 2022, the disclosed EPS metrics for June 2022 were calculated using a weighted average number of shares which allowed for a retrospective adjustment for the impact of the May 2022 Share Consolidation. The June 2022 EPS metrics shown above were corrected following the FRC thematic review. \n 2 The basic and diluted headline earnings per share figures for the prior periods have been re-presented as disclosed in note 8(c). \n 8(a): Weighted average number of Ordinary Shares \n The table below summarises the calculation of the weighted average number of Ordinary Shares for the purposes of calculating basic and diluted earnings per share for each profit measure (IFRS, adjusted and headline profit). Details of the impact on the number of shares from the Quilter share buyback scheme are detailed in note 16. \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n Million \n \n \n \n \n   \n \n \n \n \n \n Six months \n       2023 \n \n \n Six months \n       2022 1 \n \n \n Full year \n       2022 \n \n \n \n \n Weighted average number of Ordinary Shares \n \n \n   \n \n \n 1,404 \n \n \n 1,589 \n \n \n 1,496 \n \n \n \n \n Own shares including those held in consolidated funds and employee benefit trusts \n \n \n   \n \n \n (51) \n \n \n (63) \n \n \n (58) \n \n \n \n \n Basic weighted average number of Ordinary Shares \n \n \n \n \n \n 1,353 \n \n \n 1,526 \n \n \n 1,438 \n \n \n \n \n Adjustment for dilutive share awards and options \n \n \n   \n \n \n 5 \n \n \n 11 \n \n \n 20 \n \n \n \n \n Diluted weighted average number of Ordinary Shares \n \n \n   \n \n \n 1,358 \n \n \n 1,537 \n \n \n 1,458 \n \n \n \n 1 The Financial Reporting Council published a thematic review on earnings per share in September 2022. The EPS figures presented above for the six months to 30 June 2022 and the year to 31 December 2022 were calculated using the weighted average number of shares which was determined without making any retrospective adjustment for the impact of the Share Consolidation completed in May 2022 in line with the FRC's guidance and IAS 33 Earnings per Share. In the Group's interim financial statements for the six months to 30 June 2022, the disclosed EPS metrics for June 2022 were calculated using a weighted average number of shares which allowed for a retrospective adjustment for the impact of the May 2022 Share Consolidation. The June 2022 EPS metrics shown above were corrected following the FRC thematic r...

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