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Financial Services

Quilter shares rise 11% after its resilience is rewarded

Shares in Quilter PLC (LSE:QLT) soared by 11% after it weighed in with a solid if unspectacular set of interims which showed it has been resilient to the tough market conditions in the long-term savings industry.

The wealth management firm, formerly known as Old Mutual, reported a modest 2% rise in assets under management and administration (AuMA), reaching £101.7 billion.

This growth was supported by core net inflows of £700 million in the first half, particularly from its high net worth and affluent channels.

While direct channels showed subdued performance, the second quarter witnessed a 5% increase in flows across all channels, even as the broader market declined by 9%. The company's revenue climbed to £312 million, a jump from last year's £303 million.

Thanks to this modest boost to income, stringent cost management and interest income from cash reserves, Quilter's adjusted pretax profit surged by 25% to £76 million.

The firm is on track to achieve its £45 million cost savings target by year-end, a year ahead of schedule, and aims for an additional £50 million in savings by 2025.

In a sign of confidence in the future, Quilter raised its dividend from 1.2p to 1.5p per share.

The shares were changing hands for 79.3p, up 8p on Monday's close.