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SJP sees adviser numbers soar but distribution business makes £2m loss

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SJP chief executive David Bellamy

St James’s Place has seen a 6.5 per cent increase in partner numbers but costs associated with this rise contributed to a loss for its distribution business of £2.1m for the first half of the year.

SJP’s half-year results to 30 June, published today, show partner numbers have risen 12 per cent to 1,905 from 1,702 this time last year, and are up 6.5 per cent since the beginning of the year.

The company targets growth in partner numbers of 5 to 7 per cent a year. It says over the first half of the year it has attracted a higher number of advisers than usual, due to the RDR.

SJP says the extra adviser numbers resulted in a loss for the distribution business of £2.1m over the first six months of the year, compared to a £2m profit for the same period last year.

The company says: “SJP is a vertically integrated firm, allowing it to benefit from the synergies of combined management of funds with distribution. Therefore, as well as the income generated on the funds under management, there is a further margin from the distribution activity.

“In the first six months there was a small negative contribution of £2.1m. The result reflects higher expenses in 2013 associated with the strong increase in partner numbers, up 6.5 per cent, in the period. The benefit from this investment in recruitment will be seen in future periods.”

Overall SJP has posted a profit before shareholder tax of £90.1m, up 53 per cent from £58.9m for the first half of 2012.

Profits have been boosted by a one-off amount of £8.9m, which relates to a new reinsurance agreement on its closed book of protection business.

Funds under management rose 29 per cent from £30.9bn to £30.9bn, while net inflow of funds under management grew 32 per cent from £1.5bn to £1.99bn.

SJP has boosted its interim dividend by 50 per cent to 6.38p, and plans to increase the full year dividend by a similar amount.

SJP chief executive David Bellamy says: “The scale and strength of the company’s advice led approach to wealth management, twinned with a proven investment management proposition, positions SJP uniquely to benefit from the long term demographic and market opportunities in wealth management and reinforces our confidence in our ability to continue our growth in line with our medium term objectives.”

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Comments

There are 13 comments at the moment, we would love to hear your opinion too.

  1. Incompetent regulators 31st July 2013 at 9:13 am

    Just the very company that have not embraced the rdr in the true spirit of what was intended. E g exit penalties on clients contracts in the initial years and higher amcs. And yet the industry advisers who have taken this on board continue to be victimised by more unecessary changes by the regulators.

    Just another fine mess the FCA have made. It just keeps happening. Now just waiting for the next disaster!

  2. Did anyone else read the last paragraph in the voice of 1980’s botanist and environmental campaigner David Bellamy?

  3. Incompetent regulators 31st July 2013 at 9:13 am

    Just the very company that have not embraced the rdr in the true spirit of what was intended. E g exit penalties on clients contracts in the initial years and higher amcs. And yet the industry advisers who have taken this on board continue to be victimised by more unecessary changes by the regulators.

    Just another fine mess the FCA have made. It just keeps happening. Now just waiting for the next disaster!

  4. “In the first six months there was a small negative contribution of £2.1m.”

    Top marks for spin!!!

  5. So much about this company can be deduced by the following quotes:

    “Partners” – as a former partner of an accountancy practice, I do take issue with their perverse use of the word partner when referring to their self-employed salesman. Clearly the intention is to convey the impression that their salespeople are owners of the business and professional integrity.

    “a negative contribution of £2.1m”. A straight forward individual, not skilled in the arts of sophistry, would simply say, “a loss of £2.1m”.

    If this company was any slicker – it would slide off its legs. The tragedy is that clients, journalists and the regulator believe the hype. It is time to investigate behind the smoke and mirrors.

  6. “Negative contribution”

    Ha Ha Ha!

    The guy at least gets top marks for creativity.

    I really hope that someone at the interview scored highly in a bullshit bingo game.

  7. Why headline the distribution loss when the company made £90million profit? As a shareholder I’m quite pleased with the results. As a client with money invested, I’m extremely pleased! As a Chartered Accountant, I have no problem with the title partner. In my experience (FCA since 1976), you make your own mind up about the person doing any job, irrespective of their title, based on attitude and results. There are so many bad accountants and solicitors out there, as there will be IFAs. Why a successful company with so many satisfied customers attracts such bitter comments is beyond me – too much envy maybe?

  8. As the original David Bellamy might have said: An absolutely ENORMOUS penis with a RAMPANT growth of resplendent pubic hair around the base and testicles.

  9. RegulatorSaurusRex 1st August 2013 at 2:38 pm

    If I was a regulator I would be making a “negative contribution” of my own.

    How do they get away with it? Has their supervisor gone native?

  10. I, too, am a recent shareholder, having witnessed the resurrection of a cradle-to-grave financial services industry (at least for the well-off) under SJP. Yes, the partners earn well but clients in my experience love the professional attention they receive and the added value they get from really good investment management even after charges.

  11. RegulatorSaurusRex 2nd August 2013 at 5:28 pm

    “even after charges”

    Are you suggesting that the charges are high?

  12. They are not partners is any sense of the word, it is misleading consumers and it should stop, are there any regulators who are still breathing and paying attention?

  13. But many of their advisers have an equity stake in the firm so are ‘partners’, albeit junior partners.

    If you want a comprehensive face-to-face service and also attractive returns on your funds, you will often be prepared to pay above average charges.

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