6 August 2025

Quilter plc interim results for the period ended 30 June 2025

Quilter reports adjusted profit of £100 million and H1 2025 core net inflows of £4.5 billion representing 8% of opening AuMA (annualised)

Steven Levin, Chief Executive Officer, said:

"I'm pleased with our start to 2025. Flow momentum remains excellent with our Affluent and High Net Worth segments both outperforming their market peers for level of inflows and growth as a percentage of opening assets. This clearly demonstrates the powerful nature of our dual-distribution model. Our business has built on the momentum of the last two years, is in great shape and is continuing to deliver on the growth opportunities ahead."

Highlights:

·      Total Assets under Management and Administration ("AuMA") increased by 6% since year end to £126.3 billion reflecting net inflows of £4.3 billion coupled with a positive contribution from markets despite US Dollar weakness over the period. Core net inflows of £4.5 billion represented an annualised 8% (H1 2024: 3%) of opening AuMA (7% reported after non-core net outflows).

·      Platform Assets under Administration ("AuA") increased by 8% to £92.0 billion since year-end. First half Platform net inflows of £4.2 billion (H1 2024: £ 2.2 billion) were up 92% on the first half of 2024 and represented 10% (annualised) of opening AuA. Total assets under management by WealthSelect, the UK's largest Managed Portfolio Service ("MPS") reached £21.0 billion, an increase of 14% from December 2024.

·      The High Net Worth segment delivered a strong improvement in net inflows to 3% (annualised) of opening assets (H1 2024: 1%).

·      Adjusted profit before tax increased by 3% to £100 million (H1 2024: £97 million) with a percentage point improvement in the operating margin to 30% (H1 2024: 29%).

·    Revenues grew by 2% to £337 million (H1 2024: £329 million) reflecting higher management fee revenue partially offset by lower investment revenue generated on shareholder funds. Cost control limited cost growth to 2%, taking the expense base to £237 million (H1 2024: £232 million).

·      Our Simplification programme has now achieved £43 million of savings on a run-rate basis, with the remaining £7 million of the £50 million target expected to be delivered, on a run-rate basis, by the end of 2025.

·      Adjusted diluted earnings per share of 5.4p increased by 4% (H1 2024: 5.2p), broadly in line with the increase in adjusted profit.

·      Net increase of 14 Quilter Restricted Financial Planners ("RFP's") to 1,454 and four Investment Managers to 180 since December 2024.

·    Ongoing Advice Review: Skilled Person Review submitted to the FCA with discussions now focused on the implementation of a likely remediation programme. Previously recognised provision remains appropriate.

·      IFRS profit after tax of £46 million (H1 2024: £13 million).

·      Interim Dividend of 2.0 pence per share (H1 2024: 1.7 pence per share), representing an increase of 18%.

·      Solvency II ratio of 214% after payment of Interim Dividend (31 December 2024: 219%).

Key financial highlights

We assess our financial performance using a variety of measures including alternative performance measures ("APMs"), as explained further on pages 15 to 17. In the headings and tables presented, these measures are indicated with an asterisk: *.

Quilter plc results for the period ended 30 June 2025

Steven Levin, CEO, and Mark Satchel, CFO, will give a presentation via webcast at 08:30am (BST) today, 6 August 2025. The presentation will be followed by a Q&A session.

The presentation will be available to view live via the webcast or can be listened to via a conference call facility. Details on how to join online or via conference call can be found on our website: 2025 results and presentations | Quilter plc

Note: Neither the content of the Company's website nor the content of any website accessible from hyperlinks on this announcement (or any other website) is incorporated into, or forms part of, this announcement.

Disclaimer

This announcement may contain forward-looking statements with respect to certain Quilter plc's plans and its current goals and expectations relating to its future financial condition, performance and results.

By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Quilter plc's control including amongst other things, international and global economic and business conditions, the implications and economic impact of global conflicts, economic political uncertainty, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Quilter plc and its affiliates operate. As a result, Quilter plc's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Quilter plc's forward-looking statements.

Quilter plc undertakes no obligation to update the forward-looking statements contained in this presentation or any other forward-looking statements it may make.

Chief Executive Officer's statement

Business performance

I am pleased with our performance during the first half of 2025. While UK and European markets have delivered positive year-to-date returns, US Dollar weakness meant US denominated assets were lower in Sterling terms. Notwithstanding this, we have delivered:

1.     a first half adjusted profit of £100 million (H1 2024: £97 million) representing an increase of 3% on 2024's strong base level;

2.     an operating margin of 30% (H1 2024: 29%), despite lower interest rates reducing investment income on shareholders' funds; and

3.     strong flow momentum across the business with core net inflows up 160% to £4.5 billion. This represented 8% (annualised) of opening assets (H1 2024: £1.7 billion, 3% (annualised) of opening assets).

Our Affluent segment delivered strong core net inflows of 9% (annualised) of opening assets (H1 2024: 5%). Our Platform flows maintained the strong momentum from the second half of 2024 and continues to gain recognition from external market observers, improved net promoter scores as well as winning awards for service. First half Platform net inflows of £4.2 billion were up 92% on the first half of 2024 with this representing 10% (H1 2024: 6%) of opening assets (annualised).

Our High Net Worth segment delivered an improvement in net inflows to 3% (annualised) of opening assets (H1 2024: 1%). New gross flows were broadly stable at £1.5 billion with an easing of outflows leading to much better performance at the net level of £464 million (H1 2024: £107 million).

Adjusted profit before tax of £100 million (H1 2024: £97 million) represents the Group's IFRS profit, adjusted for items that management consider to be outside of normal operations or one-off in nature. The Group's IFRS profit after tax was £46 million compared to £13 million in H1 2024. Principal differences between adjusted profit and IFRS profit in the current period are due to non-cash amortisation of intangible assets and business transformation expenses.

In our preliminary results announcement on 5 March 2025, we recognised a provision of £76 million to cover potential remediation outcomes associated with the Skilled Person Review of ongoing advice by Appointed Representative firms in the Quilter Financial Planning network. The Skilled Person report was submitted to the FCA in the second quarter, and we have had initial conversations with the FCA regarding the implementation of the potential remediation programme. The provision of £76 million has since reduced to £70 million as a result of utilisation and discount unwind. The Group continues to believe this sum remains appropriate.

Group adjusted diluted earnings per share was 5.4 pence, an increase of 4% (H1 2024: 5.2 pence). On an IFRS basis, we delivered basic earnings per share of 3.4 pence per share versus 1.0 pence per share for H1 2024.

The Board declared an Interim Dividend of 2.0 pence per share, representing one third of the total 2024 dividend with this equivalent to a pay-out ratio of 59%. Once we have confirmed the implementation of the Ongoing Advice remediation programme with the FCA, the Group intends to undertake a review of our capital needs, foreseeable requirements and expected future cash and capital generation to consider whether the Group has excess capital and whether the current distribution strategy remains appropriate. We anticipate updating on the outcome of this exercise with our preliminary results announcement in March 2026.

Strategic positioning

Quilter is in great shape today and we believe Quilter is well placed to be a winner from the changes reshaping our industry:

·      First, we believe that the next few decades will witness a significant intergenerational transfer in wealth as the "baby boomer" generation passes assets to younger generations. With the complexity of UK personal tax legislation continuing to increase, appropriate personalised financial advice is needed to ensure this is undertaken as tax-efficiently as possible. The announcement in the last budget that pensions would be brought into inheritance tax from April 2027 has already driven up adviser-client engagement as clients revisit their existing financial plans.

·      Second, policymakers, regulators and individuals all recognise the need for UK households to invest more to meet desired living standards in retirement. While UK households are a nation of savers, bank deposits do not generate real capital appreciation. We believe that appropriately structured, well-diversified investment portfolios are the most appropriate pathway to long-term wealth accumulation for British households. Quilter can provide this at scale.

·      Third, the Advice Guidance Boundary Review ("AGBR") which introduces "Targeted Support" represents the most significant change to UK retail financial services regulation since the Retail Distribution Review over ten years ago. Over time, we expect that Targeted Support will allow a much broader range of options to UK households who need help with financial planning and will allow this to be provided in a manner that best suits their requirements. 

·    Finally, we are encouraged by the sentiments expressed by the UK Chancellor at her recent Mansion House speech. Clearly, the recognition from policy-makers and regulators of the need to deliver more proportionate, pro-growth regulation in the UK is positive both for investors in UK financial services companies and for those of us across the industry who fundamentally want to deliver good outcomes for our clients.

Reflecting these industry trends, Fundscape, an independent platform analysis company, expects UK advised platform assets of c.£680 billion at end December 2024 to increase by around 70% by end 2029 in their base case. Convenience of use and easy access to flexible transparent solutions will ensure that the platform industry continues to be the natural custodian of wealth investments accumulated by UK households. Moreover, platforms help advisers meet the demands of Consumer Duty by allowing them to focus on the advice relationship, while outsourcing investment management to managed portfolio solutions.

Quilter combines the UK's largest and fastest growing advised platform of scale, with our well-performing and market-leading WealthSelect managed portfolio proposition, which now has over £21 billion of Assets under Management. This makes Quilter particularly capable to capitalise on these trends. Our dual-distribution strategy ensures Quilter is well-placed to deliver wealth solutions to UK households at an industrial scale, with this built on the personal nature of individual adviser-client relationships that are core to the industry's success.

We also see significant growth potential in our High Net Worth business. Oliver Wyman, a leading consultancy, estimates that the High Net Worth market in the UK will grow by around 50% by 2029. We believe delivering on that potential will need an evolution of traditional DFM models towards more differentiated propositions in order to allow them to serve a broader range of wealthy clients.

My priorities

Looking ahead, our focus is on the following initiatives:

1.     Building the advice business of tomorrow

We have around 1,450 Quilter RFP's across our network who wrote around £2.5 billion of new business in the first half of 2025, a broadly similar level to 2024. The investment we are making in our Advice Transformation Programme ("ATP") aims to materially improve their productivity through enhanced Client Relationship Management systems with integrated support tools. ATP will allow advisers to service a larger number of clients under a range of service and charging models and will be implemented over the next couple of years.

Our Adviser Academy continues to deliver increasing numbers of advisers, with 63 graduating in the first half of 2025. These graduates, together with new firm joiners have contributed to a net increase of 14 advisers within our network since year-end. Our medium-term goal remains for academy graduates to broadly offset natural attrition from retirements with growth coming from new advisers and firms joining the network. Our Quilter Partners proposition is also expected to be a source of adviser growth and now covers ten hub firms which combine investment and Platform alignment with the entrepreneurial drive and focus of owner-operated businesses.

2.     Broadening distribution channels

As a result of the conclusions of the AGBR, we expect the financial support options for UK consumers to increase significantly. The FCA indicated that they are likely to be comfortable with Targeted Support being provided at no charge to ensure maximum take-up, with the costs of providing this met through product cross subsidisation (subject to this being undertaken in a Customer Duty compliant manner). Such an approach would favour integrated firms, like Quilter, who can use scale efficiencies in platform and investment solutions to deliver a compelling targeted support proposition for clients. The acquisition of NuWealth last year allows us to accelerate development of a targeted support proposition for self-directed investors who would like a little help to build their financial wealth. 

3.     High Net Worth evolution

In June we announced Andy McGlone had decided he would step down as CEO of our High Net Worth business later this year. I would like to thank Andy for all his efforts building this business over the last few years. I am particularly pleased by the successful integration of our investment and advice businesses into a single legal entity which allows us to service clients more effectively. Moving forward, I expect Andy's successor, John Goddard, to continue to oversee the evolution of the business from being largely investment proposition led towards being recognised as a leading integrated wealth management business.

4.     Enhancing the Quilter brand

We believe there is a significant opportunity to develop Quilter as a leading UK retail financial services brand recognised as a trusted destination for advice and investment services. Our sponsorship of the Quilter Nations Rugby Series later this year is the first step in establishing that connection which we look forward to building upon in the years ahead.

Outlook

Our results in the first half of 2025 have built upon the strong progress of the last two years. Looking forward, we expect a broadly stable UK macroeconomic environment, gradually reducing interest rates and a pick-up in real wages supporting increased saving and investment by UK households. We are approaching the end of our second Simplification programme. By end-June, this had delivered £43 million of cost savings on a run-rate basis. The remainder of the targeted £50 million will be delivered by end 2025. However, the brand spend and business investment plans we announced alongside our preliminary results earlier this year will lead to a step-up in second half costs, and we expect that this will largely offset the higher revenue contribution from our net flow momentum and positive markets. As a result, we currently anticipate that second half adjusted profit will be broadly equivalent to the first half level.

Longer-term, increased demand for financial advice and support will be driven by three structural factors:

·      increasing inter-generational transfer of wealth where personalised financial advice can ensure this happens in a tax-efficient manner;

·      individuals needing to take personal responsibility for their long-term financial security; and

·     regulatory changes reshaping the advice landscape, with policy makers recognising individuals need help to meet their financial goals.

This provides a significant opportunity, which we will meet through:

·      supporting advisers with improved technology to enhance their productivity; and

·      building new advice and guidance propositions for clients who are receptive to Targeted Support.

The fundamental growth characteristic that supports our business - the need to save for retirement - has never been more important to both individuals and to society than it is today. The strength of our dual-distribution model coupled with the operating leverage in our Platform and Solutions business allows us to provide personal wealth management services at scale, while our business focus, investment solutions and client philosophy all support delivering good client outcomes through long-term wealth accumulation. We look forward to the future with confidence and remain focused on supporting advisers and our clients to meet their needs while delivering strong outcomes for all our stakeholders in the years ahead.

Steven Levin

Chief Executive Officer

Financial review

Review of financial performance

Overview

The Group delivered solid growth in the first half of 2025, with adjusted profit before tax of £100 million, an increase of 3% on the prior period (H1 2024: £97 million). This was supported by higher net management fees driven by increased average AuMA due to strong net inflows and positive markets, and continued delivery of our Simplification programme. The Group's reported closing AuMA was £126.3 billion, a 6% increase on the opening position (FY 2024: £119.4 billion). The AuMA increase of £6.9 billion is driven by net inflows of £4.3 billion and supported by market movements, including currency movements, of £2.6 billion.

Alternative Performance Measures ("APMs")

We assess our financial performance using a variety of measures including APMs, as explained further on pages 15 to 17. In the headings and tables presented, these measures are indicated with an asterisk: *.

Key financial highlights

In the core business, net inflows of £4.5 billion increased by 160% against the prior period (H1 2024: £1.7 billion). This improvement reflected the overall favourable macro environment, stronger investor confidence, and enhanced effectiveness in our distribution and proposition strategies. Core gross flows increased 27% to £9.4 billion, (H1 2024: £7.4 billion), driven by higher activity of IFA channel flows onto the Platform. The increase reflects growth in both the total advised platform market and our market share among IFA firms. Productivity, representing Quilter channel annualised gross sales per Quilter Adviser, increased by 3% to £3.3 million (H1 2024: £3.2 million).

Within the Affluent segment:

·      Quilter channel: Gross flows of £2.1 billion were in line with the prior period, whilst net inflows of £1.3 billion increased 25% (H1 2024: £1.1 billion), demonstrating our continued strategic commitment to grow our Advice business. Annualised net inflows as a percentage of opening AuMA for the Quilter channel were 14% (H1 2024: 12%).

·      IFA channel: Gross flows of £5.7 billion onto the Quilter Platform increased by 49% (H1 2024: £3.8 billion). Net inflows of £2.9 billion were significantly higher than the prior period (H1 2024: £1.0 billion) reflecting both the breadth and strength of our proposition and distribution, and an increased market share of new business as we continued to win flows from competitors. Based on the latest Fundscape data (Q1 2025), the Platform continues to maintain the leading share of gross and net flows against our retail advised platform peers. Annualised net inflows as a percentage of opening AuMA for the IFA channel onto the Platform were 9% (H1 2024: 3%).

·      Funds via third-party platforms reported net outflows of £88 million, compared to £241 million of net outflows in the previous period.

Asset retention of 91% for the Affluent segment improved by 2 percentage points from the prior period (H1 2024: 89%).

Within the High Net Worth segment, gross flows of £1.5 billion were in line with the first half of 2024. Net inflows of £0.5 billion were meaningfully ahead of the prior period (H1 2024: £0.1 billion), predominately driven by net inflows in the IFA and direct channel during the first half of 2025 and the loss of a large value low margin account in the prior period. Asset retention of 93% for the High Net Worth segment was 4 percentage points ahead of the previous period (H1 2024: 89%).

The Group's core business AuMA of £123.4 billion is 6% ahead of the opening position (FY 2024: £116.3 billion) reflecting positive market movements of £2.6 billion and net inflows of £4.5 billion. The Affluent core segment AuMA increased by 7% to £95.0 billion (FY 2024: £88.5 billion), of which £32.0 billion is managed by Quilter, versus the opening position of £29.5 billion. The High Net Worth segment AuM was £30.0 billion, up 2% from the opening position of £29.5 billion, with all assets managed by Quilter.

In total, £61.7 billion, representing 50% of core business AuMA, is managed by Quilter across the Group (FY 2024: £58.5 billion, 50%).

The Group's revenue margin of 42 bps was 3 bps lower than the prior period (H1 2024: 45 bps).

In the Affluent segment, the administered revenue margin was 23 bps, 2 bps lower than the prior period (H1 2024: 25 bps). This is primarily the result of the impact from our tiered pricing structure and is consistent with our expectations. The managed revenue margin decreased by 2 bps to 35 bps (H1 2024: 37 bps). As anticipated, within our Managed Solutions the proportion of total client assets invested in the Cirilium Active range, our highest revenue bps contributor, remained in net outflow as advisers continued to favour Managed Portfolio Services ("MPS") for their clients. Reflecting this ongoing shift towards managed solutions on platforms, WealthSelect remains the largest MPS offering in the industry and continues to grow with AuMA of £21.0 billion as at 30 June 2025 (FY 2024: £18.4 billion).

The revenue margin in the High Net Worth segment decreased by 4 bps to 67 bps (H1 2024: 71 bps), primarily due to a shift to MPS solutions and change in asset mix.

Adjusted profit before tax increased by 3% to £100 million (H1 2024: £97 million). Net management fees of £257 million increased 5% (H1 2024: £245 million) primarily due to an increase in reported average AuMA compared to the prior period of 11% to £122.1 billion (H1 2024: £110.0 billion), partially offset by the reductions in net management fee margins largely reflecting the changes in the High Net Worth and Affluent Solutions asset mix and lower Platform margins in line with our guidance.

Interest revenue generated from client funds included within net management fees were £14 million (H1 2024: £16 million) reflecting the reduction in interest rates compared to the prior period. Other revenue of £48 million, which mainly comprise our share of income from providing advice, was broadly in line with the prior period (H1 2024: £47 million). Investment revenue, predominantly interest income generated on shareholder cash and capital resources of £32 million, decreased by £5 million (H1 2024: £37 million) due to lower average interest rates in the first half of 2025 compared to the prior period.

Operating expenses of £237 million increased by 2% on the prior period (H1 2024: £232 million) as a result of inflationary and National Insurance increases, higher FSCS levies and planned business investment, partially offset by Simplification cost savings. The Group operating margin improved by 1 percentage point to 30% (H1 2024: 29%).

The Group's IFRS profit after tax was £46 million compared to £13 million in H1 2024. This primarily reflects variances in policyholder tax outcomes in the prior period.

Adjusted diluted earnings per share increased 4% to 5.4 pence (H1 2024: 5.2 pence).

Total net revenue*

Total net revenue for the Affluent segment was £218 million, an increase of 6% from the prior period (H1 2024: £206 million). Net management fees were £158 million, £11 million ahead of the prior period (H1 2024: £147 million). This reflects a 13% increase in average Affluent AuMA with revenue margins reducing due to changes in the asset mix and the tiering impact on Platform pricing. Within net management fees, £9 million (H1 2024: £10 million) relates to interest sharing arrangements on cash balances held on the Platform.

Other revenue within the Affluent segment was £38 million (H1 2024: £37 million). This largely comprises our share of income from providing advice within Quilter Financial Planning. Investment revenue of £22 million (H1 2024: £22 million) represents interest earned on shareholder capital held to meet the regulatory capital requirements of the business.

Total net revenue of £113 million in the High Net Worth segment was £1 million higher than the prior period (H1 2024: £112 million). Net management fees were £1 million ahead of the prior period at £99 million (H1 2024: £98 million) with higher average AuM, partially offset by changes to some of our fee structures and the mix of assets. Net management fees include interest margin earned on client cash balances of £5 million (H1 2024: £6 million). Other revenue of £10 million, predominantly reflected revenue generated in Quilter Cheviot Financial Planning, and was in line with the prior period (H1 2024: £10 million). Investment revenue, representing revenue earned on regulatory capital to support the business, of £4 million was in line with the prior period (H1 2024: £4 million).

Operating expenses*

Operating expenses increased by 2% to £237 million (H1 2024: £232 million). This increase largely reflects the combination of planned business investment, inflationary impacts including higher National Insurance costs and higher FSCS levies, partially offset by continued sustainable cost savings through the Simplification programme.

We announced at our 2023 half-year results a target to deliver £50 million of annualised run rate savings from Phase II of the Simplification programme with this anticipated to be delivered on a run-rate basis by the end of 2025. At 30 June 2025, the programme had delivered £43 million of these savings, on a run-rate basis, largely through the continued rationalisation of the Group's technology and property estate, IT and operations efficiencies from our investment in Advice technology, and a reduction in support costs as we continue to simplify our governance and internal administration processes. These benefits were partially offset by the impact of inflation on our cost base during the year. As a result, base costs have continued to reduce in absolute terms. As a percentage of revenues, base costs reduced by 1 percentage point to 29% (H1 2024: 30%).

Revenue-generating staff base costs increased by 4% to £56 million (H1 2024: £54 million) and remains at a broadly similar proportion of revenues as we continue to invest in our client-facing people and proposition across our business segments to drive growth.

Variable staff compensation of £39 million (H1 2024: £38 million) increased by 3% due to National Insurance changes and improved business performance. Other variable costs of £31 million (H1 2024: £30 million) reflects an increase in Platform fees owing to the significant growth in Platform average AuMA experienced over the past year.

Regulatory and insurance costs increased by 25% to £15 million (H1 2024: £12 million) largely reflecting the increases to the FSCS levy during the first half of the year.

Taxation

The effective tax rate ("ETR") on adjusted profit before tax was 25.2% (H1 2024: 25.4%). The Group's ETR is broadly in line with the UK headline corporation tax rate of 25% and there are no material movements for the year. The Group's ETR is dependent on a number of factors, including tax rates on profits in jurisdiction outside the UK and the value of non-deductible expenses or non-taxable income. The Group's IFRS income tax expense was a charge of £54 million for the period ended 30 June 2025, compared to a charge of £64 million for the prior period. The income tax expense or credit can vary significantly period-on-period as a result of market volatility and the impact that market movements have on policyholder tax. The recognition of the income received from policyholders to fund the policyholder tax liability (which is included within the Group's IFRS revenue) has historically been volatile due to timing differences between the recognition of policy deductions and credits and the corresponding policyholder tax expense, resulting in the need for significant adjustments to the adjusted profit to remove these distortions. The Group made refinements to its unit pricing policy during 2024 which, as expected, has reduced the volatility in these timing differences. See note 5(b) to the condensed consolidated interim financial statements.

Reconciliation of adjusted profit before tax* to IFRS result

Adjusted profit before tax represents the Group's IFRS result, 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(a) in the condensed consolidated interim financial statements. The exclusion of certain adjusting items may result in adjusted profit before tax being materially higher or lower than the IFRS profit or loss after tax.

Adjusted profit before tax does not provide a complete picture of the Group's financial performance, which is disclosed in the IFRS consolidated statement of comprehensive income but is instead intended to provide additional comparability and understanding of the financial results.

The impact of acquisition and disposal-related accounting costs of £11 million (H1 2024: £19 million) includes amortisation of acquired intangible assets and acquired adviser schemes. During the first half of the year the intangible asset related to the Group's original acquisition of Quilter Cheviot became fully amortised, which has reduced the overall amortisation charge.

Business transformation costs of £17 million were incurred in H1 2025 (H1 2024: £12 million), which predominately reflects the delivery of Simplification initiatives. The implementation costs to deliver the remaining £7 million of annualised run-rate savings for the programme are estimated to be £24 million.

There were no further costs related to the Skilled Person Review in H1 2025. The prior period costs included the estimated external cost and direct cost of internal resources to support and perform the Skilled Person Review of historical data and practices across the Quilter Financial Planning network of Appointed Representative firms. This cost was excluded from adjusted profit as management considered it to be outside of the Group's normal operations and one-off in nature.

Customer remediation exercise costs of £1 million (H1 2024: £nil) represent the unwind of the discount rate when calculating the present value of future costs associated with the Customer remediation exercise provision. During H1 2025, £7 million of the provision has been utilised in relation to administrative costs. As at 30 June 2025, the Customer remediation exercise provision stood at £70 million (31 December 2024: £76 million). Further details of the provision are provided in note 16 of the condensed consolidated interim financial statements. The costs related to this exercise are excluded from adjusted profit as management considers it to be outside of the Group's normal operations and one-off in nature.

For H1 2025 foreign exchange movements on cash held in South African Rand in preparation for payments of dividends to shareholders were £nil (H1 2024: £1 million income). Cash is converted to South African Rand upon announcement of the 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.

For H1 2025, the total amount of policyholder tax adjustments to adjusted profit was £nil (H1 2024: £38 million credit). Historically, adjustments to policyholder tax have been made to remove distortions due to the recognition of the income received from policyholders to fund the policyholder tax liability (which is included within the Group's income) varying in timing to the recognition of the corresponding tax expense, creating volatility in the Group's IFRS profit or loss before tax. During 2024, the Group made changes to the unit pricing policy relating to policyholder tax charges which has reduced the volatility in these accounting timing differences, and in turn, the value of the policyholder tax adjustments in 2025.

Review of financial position

Capital and liquidity

Solvency II

The Group's solvency surplus is £873 million at 30 June 2025 (31 December 2024: £851 million), representing a solvency ratio of 214% (31 December 2024: 219%). The solvency information for the six months to 30 June 2025 contained in this results disclosure has been prepared based on a pro forma basis and has not been audited.

The Group's solvency capital position is stated after allowing for the impact of the foreseeable dividend payment of £27 million (31 December 2024: £57 million). 

The Group solvency ratio remains broadly in line with the position as at 31 December 2024.

The Group's own funds include the Quilter plc issued subordinated debt security which qualifies as capital under the UK Solvency II rules. The composition of own funds by tier is presented in the table below.

The Group SCR is covered by Tier 1 capital, which represents 187% of the Group SCR of £767 million. Tier 2 capital represents 23% of the Group solvency surplus.

Interim Dividend

The Quilter Board declared an Interim Dividend for 2025 of 2.0 pence per share at a total cost of £27 million. The Interim Dividend will be paid on 22 September 2025 to shareholders on the UK and South African share registers on 29 August 2025. For shareholders on our South African share register an Interim Dividend of 47.71146 South African cents per share will be paid on 22 September 2025, using an exchange rate of 23.85573.

Holding company cash

The holding company cash statement includes cash flows generated by the three main holding companies within the business: Quilter plc, Quilter Holdings Limited and Quilter UK Holding Limited. The flows associated with these companies will differ markedly from those disclosed in the statutory statement of cash flows, which comprises flows from the entire Quilter plc Group including policyholder movements.

^[1]The total holding company cash figure excludes certain amounts earmarked to cover cash efficiency loans due to other Group companies on demand including amounts relating to customer remediation.

Net capital movements

Net capital movements in the period totalled an outflow of £57 million, which relates exclusively to dividend payments made to shareholders.

Net operational movements

Net operational movements were an outflow of £21 million for the period, which includes £16 million of corporate and transformation costs, finance costs of £9 million relating to coupon payments on the Tier 2 bonds and non-utilisation fees for the revolving credit facility, and £4 million of net interest income received on money market funds, Group loans and cash holdings.

Internal capital and strategic investments

The net outflow of £3 million is principally due to £124 million of cash remittances from subsidiaries, offset by £127 million of capital contributions to cover the potential customer remediation exercise across the Quilter Financial Planning network of Appointed Representative firms, support business operational activities and further investment in the underlying business through acquisitions made. Capital contributions also include obligations to the Employee Benefit Trust of £19 million (FY 2024: £12 million) to fund current and anticipated share based payment awards.

Shareholder information - Interim Dividend

The Quilter Board has declared an Interim Dividend of 2.0 pence per share. The 2025 Interim Dividend will be paid on Monday 22 September 2025 to shareholders on the UK and South African share registers on Friday 29 August 2025 (the "Record Date").

Dividend Timetable

From the opening of trading on Wednesday 6 August 2025 until the close of business on Friday 29 August 2025, no transfers between the London and Johannesburg registers will be permitted. Share certificates for shareholders on the South African register may not be dematerialised or rematerialised between Wednesday 27 August 2025 and Friday 29 August 2025, both dates inclusive.

Additional information

For shareholders on our South African share register, an Interim Dividend of 47.71146 South African cents per share will be paid on Monday 22 September 2025, based on an exchange rate of 23.85573. Dividend Tax will be withheld at the rate of 20% from the amount of the gross dividend of 47.71146 South African cents per share paid to South African shareholders unless a shareholder qualifies for exemption. After the Dividend Tax has been withheld, the net Interim Dividend will be 38.16917 South African cents per share. The Company had a total of 1,404,105,498 shares in issue at today's date.

If you are uncertain as to the tax treatment of any dividends, you should consult your own tax adviser.

Supplementary information

Alternative Performance Measures ("APMs")

We assess our financial performance using a variety of measures including APMs, as explained further on pages 15 to 17. These measures are indicated with an asterisk: *.

For the period ended 30 June 2025

1.     Key financial data

1. Affluent

The following table presents certain key financial metrics utilised by management with respect to the business units of the Affluent segment, for the periods indicated.

2. High Net Worth

The following table presents certain key financial metrics utilised by management with respect to the business units of the High Net Worth segment, for the periods indicated.

Financial performance by segment

The following table presents a breakdown of financial performance by segment and Quilter plc for the periods indicated.

¹Net management fee includes the interest earned on client holdings in Quilter Cheviot and Quilter Investment Platform.

²Interest income and expense on intercompany loans has been reclassified from Other revenue to Investment revenue, better reflecting the nature of the revenue.

 Alternative Performance Measures

We assess our financial performance using a variety of alternative performance measures ("APMs"). APMs are not defined under IFRS, but we use them to provide further insight into the financial performance, financial position and cash flows of the Group and the way it is managed.

APMs should be read together with the Group's condensed consolidated interim financial statements, which include the Group's statement of comprehensive income, statement of financial position and statement of cash flows, which are presented on pages 21 to 24.

Further details of APMs used by the Group in its Financial review are provided below.