Quilter to press on with divi, share buyback

Quilter said on Monday its £750m in cash left it in a "strong financial position", allowing it to make the 3.5p a share payout.

The FTSE 250-listed firm posted a 13.7% decline in assets under management and administration to £95.3bn as of 31 March and said its average AUMA for the quarter came in at £105.2bn - broadly flat when compared to the £105.7bn average from a year earlier.

Due to the drop in AUMA, Quilter warned that it would no longer be able to hit its 27% operating margins target for the year and would now look to cut costs by as much as £30m through variable compensation, reduced marketing spends and other short-term initiatives.

Chief executive Paul Feeney said: "After a good start to the quarter in terms of flows, revenues and profitability, the global health crisis caused by Covid-19 has significantly altered economic and market expectations for the foreseeable future.

"The path and timing of the reversion to a more normal environment remain unclear and we expect this to be reflected in further market volatility."

As of 0840 BST, Quilter shares were down 3.16% at 111.75p.