This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

SJP sees distribution profits rise 5 per cent

  • Print
  • Comment

St. James’s Place has announced an increase in pre-tax profits for its distribution arm by 5 per cent to £6.1m in 2011, compared to £5.8m in 2010.

The firm’s overall pre-tax profits fell 86 per cent on an IFRS basis from £161.9m in 2010 to £21.3m in 2011 while pre-tax profits on an EEV basis for the business fell 58 per cent from £455m to £190.8m.

The IFRS profit before shareholder tax for 2011 was £109.7m, an increase of 30 per cent compared to £84.2m in 2010, when accounting for an £88.4m tax credit in 2011.

SJP chief executive David Bellamy says the drop in pre-tax profits is a result of investment return variance which rose 53 per cent from £117.6m in 2010 to £180.4m in 2011.

He says: “It is a consequence of the calculation of embedded value it is not a consequence of the performance of the business. If stock markets rise through the year then you will see that investment return variance come shooting back in.”

Bellamy added that although a small number of advisers will exit the business by the end of 2012, it expects to see its overall adviser numbers increase over the year.

He says: “Recently we have seen a year-on-year increase of between 5 and 6 per cent and we would expect to see that again in 2012.”

The firm saw an increase of 6 per cent in its adviser numbers in 2011, taking the total to 1,649.

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick


How do you plan to vote at the general election?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments