St. James's Place Half Year Results 2021

STRONG NEW BUSINESS AND FINANCIAL PERFORMANCE

St. James’s Place plc (“SJP”), the wealth management group, today issues its results for the six months ended 30 June 2021:

New investment and funds under management

• Gross inflows of £9.2 billion (2020: £7.3 billion)
• Continued strong retention of client funds – 96%
• Net inflows of £5.5 billion (2020: £4.5 billion), representing 8.6% of opening FUM (annualised)
• Group funds under management of £143.8 billion (31 December 2020: £129.3 billion)

Financial Highlights

• Underlying cash result £189.3 million (2020: £114.4 million)
• EEV operating profit £844.8 million (2020: £418.7 million)
• IFRS profit after tax £120.9 million (2020: £178.1 million)
• Interim dividend of 11.55 pence per share, representing 30% of prior full year dividend

Other highlights:

• We are now represented by 4,477 qualified advisers across the Partnership, an increase of 139 year to-date
• 71 advisers graduated from our Academy programmes; 277 ‘students’ now enrolled
• EEV net asset value per share £15.31 (2020: £12.78)

Andrew Croft, Chief Executive, commented:

“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 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 annualised basis. These net inflows, together with the positive impact from investment markets, has resulted in funds under management closing the half at a record £143.8 billion, up 11% year to-date.

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 first half we added a net 139 advisers through resuming activity in both experienced adviser recruitment and Academy graduation. 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.

Although there remains inherent uncertainty in the operating environment as the UK and the world at large continues to navigate the pandemic, the results we have announced today show we have made an encouraging start against our 2025 ambitions.”

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