St James’s Place has announced a 13 per cent decline in pre-tax profits for its distribution arm, down from £6.1m in 2011 to £5.3m in 2012.
The firm’s end of year results, published last week, show an overall profit before shareholder tax increase of 22.7 per cent for the combined life, unit trust and distribution business from £109.7m to £134.6m.
The number of SJP advisers increased 8 per cent to 1,788 over the year.
The firm reports total FSA and FSCS costs of £9m for 2012, a 50 per cent increase on the £6m for 2011.
Chief executive David Bellamy says: “Increasing the number of partners and providing them with the tools and support to deliver high quality outcomes for clients are key drivers to achieving our long term business growth objectives. Our increasing FSCS costs are an inevitability which all firms have to face.”
The firm increased its full year dividend by 33 per cent, up from 8p to 10.64p.
Total single investments rose 13 per cent to £5.88bn and total funds under management increased 22 per cent by the end of the year to reach £34.8bn.
PMI Independent Financial Advisers director John Stewart says: “Because SJP has the product manufacture capability within the business it can post the profits it does. Although the business is not popular with many IFAs it is taking on new advisers which should be viewed as positive.”