LONDON (ShareCast) - (Sharecast News) - Financial services company Quilter posted a drop in interim pre-tax profits on Tuesday as assets under management growth stalled in the six months ended June but swung to a profit after tax and declared an interim dividend.
Quilter saw pre-tax profits slide 25% to £71.0m, while AUM growth for the period came in at just 3% to £107.4bn.

Although AUM was below the level reported at the time of Quilter's full-year results, they were up 12% on the £95.3bn recorded at the end of the first quarter.

After tax, however, Quilter actually swung from a loss of £17.0m to a profit of £43.0m in the half, supported by higher policyholder tax benefits due to market movements in the period. Both basic and diluted earnings per share came to 2.4p each.

As a result, the FTSE 250-listed company vowed to shell out an interim dividend of 1.0p per share - right at the lower end of its target pay-out range.

Integrated net flows were unchanged at £1.4bn, net client cash flows nearly quadrupled to £1.1bn on the back of lower outflows and steady gross sales of £6.0bn.

Operating margins contracted to 21% from 26%, reflecting the "challenging revenue environment".

Chief executive Paul Feeney said: "The first half of 2020 was a uniquely challenging environment which has forced us all to reconsider the way we socially interact and undertake business activities. In terms of our financial performance, strategic progress and focus on operational improvement, I am pleased Quilter has come through this period extremely well and delivered.

"Notwithstanding short-term uncertainties, Quilter remains well-positioned in an industry with secular long-term growth prospects. The business is in good shape and we look forward to the future with confidence ."

As of 0840 BST, Quilter shares were down 0.13% at 150.05p.

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