SJP hikes dividend by 15% despite £17m FSCS hit


St James’s Place has decided to increase its interim dividend payout by 15 per cent despite a Financial Services Compensation Scheme levy of £17m.

The interim dividend for 2016 will be 12.33p, paid on 30 September.

SJP says its FSCS levy has hit “all profit measures”, but expects the levy to “return to a more normalised level” in future.

The company has made a pre-tax profit on an IFRS basis of £60.5m for the first half of the year, down around 10 per cent from £67m at the same time last year.

Funds under management have gone from £55.5bn to £65.6bn, while net inflows went from £2.7bn to £3.1bn over the same period.

SJP says it plans to roll out a long-term care service later this year, as well as probate support services, an “intergenerational gifting service” and family protection products.

It follows the launch of its family mortgage range with Metro Bank, where SJP clients can use their investments to help relatives access lower mortgage rates.

SJP is also planning to launch a Worldwide Income fund managed by Investec’s Clyde Rossouw.

SJP chief executive David Bellamy says: “Whilst the UK’s decision to leave the EU has created a period of economic uncertainty, the challenges and responsibilities that many people face when considering how to manage their wealth and the ever changing tax considerations, remain. We believe we are extremely well placed to meet this increasing need for advice.

“Consequently, without being complacent about the possible consequences of Brexit, the proven strength in our business model and ongoing momentum gives us confidence in our ability to deliver continued growth in line with our objectives.

“Indeed, I can report that new fund flows since the referendum remain in line with those medium term objectives.”