All-time share high for Gloucestershire's St James's Place
By Richard Wright | 28th July 2021
Shares in Gloucestershire-based wealth management firm St James's Place have reached an all-time high after it revealed a sharp increase in business.
The Cirencester-based firm posted its first six-month results which showed new investment of £9.2 billion, up from £7.3 billion in 2020.
A share price of £15.92 meant the company's shares were the top riser on the FTSE 100 today, up 5.7%.
Andrew Croft, chief executive officer, said: "I am very pleased to report a strong set of new business and financial results for the first six months of the year.
"During the first half, the Partnership attracted £9.2 billion of new client investments, with strong flows reflecting a combination of factors including improving client sentiment, a sharp increase in household savings rates, and high levels of client engagement."
Retention of clients has remained strong through the period, resulting in net inflows of £5.5 billion in the first half, equivalent to 8.6% of opening funds under management on an annual basis.
These net inflows, together with the positive impact from investment markets, has resulted in funds under management closing the first half of the year at a record £143.8 billion, up 11% year to-date.
Andrew Croft added: "Growth in new business and funds under management has resulted in strong growth in income whilst 'controllable' expenses for the six months are modestly lower than in the first half of 2020 reflecting the phasing of our planned cost growth towards the second half of the year.
"The combination of the income and expense outcomes has resulted in a strong financial result, with the underlying cash result of £189.3 million, up strongly on the prior period."
During the same period the firm added an extra 139 advisers with both experienced adviser recruitment and Academy graduation. St James's Place now has 4,477 qualified advisers across the Partnership.
He said: "Having grown the Partnership by 3.2% during the first half, we are well positioned to support even more clients with their long-term financial planning goals going forward.
"The impact of the pandemic on the timing and value of flows in 2020 and 2021 will naturally result in a variable pattern of year-on-year growth and normal phasing of business.
"Taking this into account together with a strong start to July, we anticipate a rate of gross inflow growth for the second half of around 20% despite strengthening comparatives in the latter part of the year."
He added that there remained uncertainty in the operating environment as the UK and the world at large 'continues to navigate the pandemic', but concluded that today's results showed an 'encouraging start' towards its 2025 goals.
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