St. James's Place reports 'robust' business performance
By David Wood | 27th July 2023
Cirencester-based wealth management company St. James's Place plc today issues its half-year results.
For the six months ended 30 June 2023, the firm had gross inflows of £8.0 billion (2022: £9.1 billion) and net inflows of £3.4 billion (2022: £5.5 billion).
Group funds under management were a record £157.5 billion (31 December 2022: £148.4 billion) with a continued strong retention of client funds at 95.6%.
International Financial Reporting Standards (IFRS) profit after tax was £161.7 million (2022: £208.2 million) and the firm had an underlying cash result of £207.1 million (2022: £198.8 million).
St. James's Place is now represented by 4,766 qualified advisers across the partnership, an increase of 73 year-to-date.
Andrew Croft, chief executive officer, said: "I am pleased to report a robust business performance in the first half of 2023, highlighting once more the fundamental resilience of our business model and the strength of relationships our advisers enjoy with their clients.
"This has been a challenging period for many UK savers and investors who have had to contend with high and persistent inflation, rising borrowing costs, a mini banking crisis in the US and attendant stock market volatility, and continued macro-economic and geo-political uncertainty. Despite this, we attracted £8.0 billion of new client investments during the first half of 2023."
Mr Croft added: "We are also pleased at the continued strong retention of client funds under management, with annualised retention of 95.6% in the first half of the year. Given the scale of inflationary pressures facing consumers in the UK it is, however, little surprise that we have seen a return to more normal investment withdrawal rates across our pensions and bonds business, together with an increase in surrender rates across smaller unit trusts and ISA portfolios.
"As a result, we achieved net inflows of £3.4 billion. A strong outcome given the market environment and one that supported funds under management increasing 6% over the six months to a record £157.5 billion.
"This operating performance has been mirrored by a strong financial outturn for the period. Despite the headwinds of a challenging new business environment, the impact of inflationary pressures on our cost base, and a marked increase in the rate of UK corporation tax, we have delivered an underlying post-tax cash result of £207.1 million, up 4% versus the prior year.
"As we look ahead, there continue to be challenges for UK consumers, but as a long-term business our focus remains on ensuring we are well positioned to support our advisers, build great relationships and deliver trusted and valued face-to-face advice over time. This commitment underpins our 2025 plan and will enable SJP to capitalise on the scale of long-term market opportunity ahead."
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