Group Adjusted Operating Profit Growth
Adjusted operating profit increased 4% year-on-year to GBP 264 million, reflecting strong contributions from interactive investor and investment cost discipline.
IFRS Profit Before Tax Boosted by Strategic Investment
IFRS profit before tax rose 76% to GBP 442 million, largely driven by a GBP 236 million fair value increase in the group's strategic investment in Standard Life (Phoenix).
Interactive Investor (ii) Exceptional Performance
ii delivered strong growth: customer numbers +14% to 0.5 million, SIPPs +30%, net inflows +28% to GBP 7.3 billion, AUMA +26%, revenue +19% to GBP 330 million, trading revenue +44% to GBP 101 million, DARTs +32% to over 26,000, and adjusted operating profit +34% to GBP 155 million. Cost-to-AUMA improved from 19 to 18 basis points.
Transformation Programme Exceeded Savings Target
The transformation programme delivered GBP 180 million of annualized run-rate savings (vs. original GBP 150 million target), enabled a 5% reduction in group adjusted operating expenses and created capacity to invest in growth initiatives.
Investments Showing Positive Momentum
Investments adjusted operating profit rose 5% to GBP 64 million. Gross flows in I&RW (excluding liquidity) strengthened by over 50%, 3-year outperformance reached 80% (above target), and 42% of AUM now has 4- or 5-star Morningstar ratings.
Stronger Capital Position and Dividend Maintainance
Regulatory capital requirement reduced 17% to GBP 879 million after moving to an internal capital assessment; CET coverage ratio improved to 163% (from 139%) and total coverage to 218% (from 198%). Dividend maintained at 14.6p per share.
AUMA and Employee Engagement Gains
Group AUMA increased 9% to GBP 556 billion. Colleague engagement improved by 10 points to 67%, supporting execution and cultural momentum.
Strategic Stagecoach Win
Agreement to manage GBP 1.2 billion of Stagecoach pension assets, expected to add circa GBP 3–4 million of annual investment management fees and a present value of expected future cash flows ~GBP 63 million, with around GBP 3 million annual benefit to adjusted operating profit from 2026.