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.”