Quilter says its pre-tax profit tanked 25% in the fiscal first half

Quilter says its pre-tax profit tanked 25% in the fiscal first half
Written by:
Wajeeh Khan
11th August, 11:11
  • Quilter says its pre-tax profit tanked 25% in the fiscal first half.
  • The financial services firm values its AUM at £107 billion in H1.
  • The British company announces 1 penny of interim dividend per share.

Quilter plc (LON: QLT) said on Tuesday that its adjusted pre-tax profit in the first half (H1) of the current fiscal year came in 25% lower. The company attributed the decline to the Coronavirus pandemic that has so far infected more than 300,000 people in the United Kingdom and caused over 46,500 deaths.

Shares of the company opened about 2.5% up on Tuesday. But the stock tanked more than 4% in the next hour. Quilter plc is currently exchanging hands at 150 pence per share. In comparison, it had dropped to as low as 98 pence per share in March due to the impact from the Coronavirus pandemic. Here’s how you can invest online and start trading on the stock market in 2020.

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Quilter values its AUM at £107 billion in H1

As of the end of the first six months of the financial year, Quilter had £107 billion in assets under management (AUM) that represents a 3% decline versus the start of the year. The wealth management group badly advised British Steel workers to switch out of their company pension schemes. Quilter announced to have more than doubled the money set aside for compensation to £29 million on Tuesday.

The financial services company registered £71 million of adjusted pre-tax profit in H1. In the same period last year, its profit was registered at a much higher £89 million. Its peer, Hargreaves Lansdown, said last week that its full-year pre-tax profit tanked 24% due to the health crisis.

Quilter reports a 12% growth in AUM in the second quarter

Quilter’s assets under management may have been lower than what it noted in its annual report for last year, but it posted a 12% growth in AUM in the past three months. As of the end of the fiscal first quarter, the British fund firm had £95.3 billion of assets under management.

The company’s board decided in favour of paying 1 penny of interim dividend per share on Tuesday. The announced dividend hits the lower end of the range it had targeted for pay-out earlier this year.

Quilter said that its decision about annual dividend will be announced when it publishes the full-year financial report in March for fiscal 2020.

Quilter performed fairly upbeat in the stock market last year with an annual gain of about 35%. At the time of writing, the FTSE 250 listed company has a market capitalisation of £2.76 billion.  

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