St. James's Place Half Year Results 2022

Strong new business and financial performance

St. James’s Place plc (“SJP”) today issues its interim results for the six months ended 30 June 2022:

New investment and funds under management

• Gross inflows of £9.1 billion (2021: £9.2 billion)
• Continued strong retention of client funds at 96.5%
• Net inflows of £5.5 billion (2021: £5.5 billion), representing 7.1% of opening FUM (annualised)
• Group funds under management of £142.3 billion (31 December 2021: £154.0 billion)

Financial highlights and dividend

• Underlying cash result £198.8 million (2021: £189.3 million)
• EEV operating profit £914.2 million (2021: £844.8 million)
• IFRS profit after tax £205.6 million (2021: £120.9 million)
• Interim dividend of 15.59 pence per share (2021: 11.55 pence per share), representing 30% of prior full year dividend

Other Highlights

• We are now represented by 4,626 qualified advisers across the Partnership, an increase of 70 year to-date
• EEV net asset value per share £15.74 (31 December 2021: £16.57)

Andrew Croft, Chief Executive Officer, commented:

“After a year that saw global economies and investment markets rebound across the world, the first half of 2022 has presented fresh challenges for individuals looking to save and invest for the future. Sharply rising inflation, geo-political tensions, domestic political uncertainty and a more uncertain economic outlook, all present risks for those seeking confidence in their future. This is an environment in which our advisers can add real value for their clients, helping them to stay on track.

I am therefore very encouraged, but not at all surprised, by the strength of our business performance during the period, which is a testament to the qualities of our business model and the hard work of our entire SJP community.

During the first half we attracted £9.1 billion of new client investments as advisers continued to support clients in achieving their long-term ambitions despite a more challenging external environment. The importance of retaining a long-term mindset is also a key factor behind the continued strength of retention rates, which has underpinned net inflows of £5.5 billion, in line with the first half of 2021 and equivalent to 7.1% of opening funds under management on an annualised basis.

While our new business performance has been strong, significant reversals in global investment markets have impacted our funds under management (FUM), which closed the half at £142.3 billion.

Although FUM has fallen since the start of the year, our income has been supported by the maturing of funds in gestation during the first half. This, together with continued discipline around how we manage our resources, has supported a strong financial result for the period with an Underlying cash result of £198.8 million, up 5% period-on-period.

We enter the second half of the year with a growing Partnership ideally placed to continue helping clients in these uncertain times. Financial advice is needed now more than ever given the challenges facing individuals, both in the short- and long-term. Given current market conditions, we now expect full year gross and net flows of around £18 billion and £11 billion respectively, which would make 2022 our second highest ever year for flows and put the business even further ahead against our 2025 business plan objectives.” 

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