UK Platform Transformation Programme
Updated financial guidance
Optimisation &
operating margin
target (pre-tax)
Tax rate
Share count
London relocation
UK Platform
Transformation
Programme
Previous guidance
Optimisation: £75m one-off costs to deliver optimisation
phase 1 initiatives, with c.50% incurred by end of 2019
Target: Targeting c.2 percentage point improvement in
operating margin by 2020 (27%) and a further 2 percentage
points by 2021 (29%), assuming broadly normal market
performance from around current levels, together with steady
net flows
Coronavirus-induced correction makes this a challenge if
market levels remain depressed
Corporate tax rate to remain below UK marginal rate, due to
profit mix and lower tax rate in International
Shares in respect of staff share schemes expected to vest over
the next two years. OLO shares housed in Treasury to fund
future staff share schemes. Future share awards then satisfied
through on-market purchases
Buyback shares to be cancelled at purchase
Relocation anticipated to increase property costs by £10m in
2020 while we incur some dual-running costs, and c.£5m of
ongoing additional costs thereafter
Costs incurred to be approximately £185m in total over the
programme
Updates to guidance
Moved away from 2020 guidance in March due to significant
COVID-19 driven market decline
Optimisation initiatives to support two percentage point
operating margin improvement in 2021 versus 2020 outturn
No change
No change
No change
Total project costs expected to be c.£200 million based on
current migration timetables
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