Quilter (LON:QLT) management said it made strong strategic and financial progress in 2025, pointing to record net inflows, continued operating margin expansion to its medium-term target and an updated capital return framework including a planned share buyback.
In opening remarks, CEO Steven Levin highlighted the “very uncertain global political environment” and said the group’s thoughts were with colleagues and clients in the Middle East.
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Levin said core net flows rose to a record £9 billion, up 75% from 2024, with a boost in corporate and independent financial advisor (IFA) channels. It described the current level of net inflows (around £2bn per quarter) as “broadly sustainable”, despite a temporary pick-up in outflows linked to “prolonged speculation and uncertainty” around the UK budget in November.
Quilter highlighted distribution and proposition initiatives as key drivers. In its corporate channel, the company increased the number of advisors and firms while boosting productivity, with more than 100 advisors graduating from its Academy and beginning to build its client portfolio. At high net worth, Quilter brought in investment managers and announced the acquisition of GillenMarkets in Ireland.
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As for products, Levin cited the continued growth of its WealthSelect MPS, which he says is the largest on the market and is now available on six third-party platforms. Quilter also launched “Smooth Funds” with Standard Life earlier this year, aimed at clients nearing retirement. The company is also developing a “specific support” proposal and in high-net-worth sectors has added offers for the private market and a new decumulation solution for retirees.
Levin said Quilter completed its simplification program, invested in its brand, advanced its advisory transformation program and began implementing AI productivity tools for advisors.
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Quilter also highlighted the platform’s performance, describing itself as the UK’s largest individual advice platform and “the fastest growing of the large platforms”. It reported that corporate channel platform inflows increased 12% year-on-year, with net flows around 18% of opening balances. In the IFA channel, net inflows increased 92% year-on-year, reaching 9% of opening balances.
Management said the industry continues to move away from active management towards passive and blended solutions, and from funds of funds towards model portfolios (MPS). Quilter said its growth is “skewed” towards WealthSelect MPS and passive/blended solutions, while Cirilium Active saw exits.
According to Levin, assets under management increased from £26 billion in 2023 to £37 billion by the end of 2025, and WealthSelect MPS surpassed £25 billion. He said the product’s performance and price have supported adoption, and availability on third-party platforms allows advisors to use it as a core solution regardless of platform.
In response to a question about competition, Quilter said WealthSelect has “12 years of first-quartile investment performance,” a wide range of portfolio options (56 portfolios across all risk profiles and styles), and “market-leading” reports and tools.
Quilter said high net worth net flow growth improved year over year and continued to outperform listed peers, although he characterized flows as mixed by channel. The company cited “good net flows” from its own advisors, but a more challenging outlook in IFA and direct channels due to a more mature client base and higher natural reimbursement rates. Levin also said pre-budget uncertainty contributed to “above-average capital outflows in the fourth quarter” among high-net-worth clients.
Over the past 12 months, the company combined investment management and advisory fees into a single entity, digitized several core processes, launched a mobile app, expanded plan solutions, and reported continued strong investment performance. Levin said more work is needed and that after John Goddard took over leadership in September, Quilter refocused the distribution strategy and reviewed the adequacy of its own RFPs. The company is “realigning and rationalizing” parts of the team, and affected advisors can move into its affluent segment or exit.
Quilter also said it is moving small-scale, high-net-worth clients from discretionary portfolio services (DPS) to MPS to better meet needs and reduce costs, freeing up capacity for investment managers to focus on higher-value discretionary clients. Levin said the high-net-worth business is working toward “mid-single digit” net flows as a percentage of assets and an operating margin in the “mid-twenties.”
CFO Mark explained that 2025 revenue increased 5% to £701 million, including a 7% growth in net management fees, partly offset by lower interest income on shareholders’ equity, which reduced revenue growth by approximately one percentage point. Average assets under management and administration (AUMA) increased 14% thanks to strong flows and positive markets.
Costs rose 4% to £494m, below Quilter’s £500m guidance, reflecting inflation, higher national insurance, business investment and regulatory taxes, partly offset by simplification savings. Adjusted profit rose 6% to £207 million and operating margin reached 30%, which management said is in line with its medium-term target. Adjusted diluted EPS rose 4% to 11p, with the difference to profit growth attributed to a slightly higher effective tax rate.
By segment, Quilter reported:
Tributary: Revenue rose 7% and profits rose 14% to £169 million, with operating margin improving by 2 percentage points.
High net worth: Total revenue was up 3% and a profit of £47m, “broadly in line” with the previous year, with operating margin declining marginally.
Regarding costs and expectations for 2026, Mark said the company plans to invest more in areas including acquisitions (including GillenMarkets), targeted support and proposal development from Culture Invest, advisor engagement through the Academy, technology including artificial intelligence capabilities and brand building campaigns. It suggested a modeling base for 2026 costs of around £530m to £540m, derived from doubling the second half 2025 cost run rate and adding around 4% inflation, while noting that results would be managed with sensitivity to market-driven revenues. He reiterated the longer-term inflation guidance plus a few percentage points.
Quilter also discussed remediation for ongoing advice. Mark said the company had raised a provision of £76m last year and had begun its remediation programme. Based on current expectations, Quilter anticipates that remediation and administration costs will be around £20 million less than originally expected, resulting in a reduction in provision. The balance of the provision at the end of 2025 was £42 million.
The board declared a total dividend for the year of 6.3 pence per share, an increase of 7%, including a final dividend of 4.3 pence. Quilter also outlined a shift toward a distribution policy that aims for 70% of adjusted earnings after taxes and interest to be returned to shareholders, with 30% retained to support growth and M&A. Following a capital review, the company said it has around £100 million of excess capital and intends to repay it through a share buyback that is expected to be completed before the end of the year. Management indicated that from 2026 onwards it expects the interim dividend to be one-third of the previous year’s total cash dividend per share, and said investors should expect an interim dividend of 2.1 pence by 2026.
Levin framed Quilter’s growth opportunity around the growing demand for advice amid tax complexity, retirement savings needs and intergenerational wealth transfer. Citing research from Boring Money, it described an advised market of around £1 trillion among around 4 million people, along with an “advice gap” of around 12 million unadvised people with more than £800 billion of assets and low investment confidence.
Quilter said his goal is to serve clients on a spectrum from direction and guidance to targeted support, streamlined advice and fully regulated advice. Levin emphasized that AI will not eliminate the need for advisors, particularly for the complex planning and “empathy and empowerment” that clients desire.
Management said it is investing in technology and artificial intelligence to boost advisor productivity and improve operations. Levin said Quilter has implemented artificial intelligence tools that record, transcribe and summarize meetings, reducing work that “took hours” to “10 to 15 minutes.” Quilter is also developing an end-to-end advisor support system with FNZ, with full implementation planned for early 2027, while implementing some components upfront.
As for specific support, management said the business will likely take time to build and is not expected to “move the dial” on profitability in the next one to three years, but should have a “good operating margin” as it leverages platform margin and Quilter’s core investment solutions. The company said it has submitted an application to the FCA to provide targeted support through Quilter Invest, with the regulatory process “opening this week” and outlined an adviser “incubation” model where advisers can refer clients to Quilter Invest and then reconnect them with the referring adviser.
Quilter is a leading UK and cross-border full-service wealth management firm whose purpose is to help create prosperity for today’s and tomorrow’s generations. It has leading positions in one of the world’s largest wealth markets, and its multi-channel proposition and investment performance are generating attractive growth.
The article “Quilter H2 Earnings Call Highlights” was originally published by MarketBeat.
