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SJP says distribution arm will return to profit this year

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SJP chief executive David Bellamy

St James’s Place chief executive David Bellamy says its distri-bution arm will move back into profit in the second half of 2013 despite increasing partner numbers contributing to a £2.1m loss for the first half.

SJP’s half-year results to 30 June, published last week, show that partner numbers have risen by 12 per cent to 1,905 from 1,702 this time last year, and are up by 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 it has attracted a higher number of advisers than usual over the first half of the year because of 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 with a £2m profit for the same period last year.

Speaking to Money Marketing following the results, Bellamy says: “We have seen a high level of activity in terms of people coming in and that has a cost of induction. That activity has returned to normal levels and that should hopefully see us back into profit in the second half of the year.”

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 figure of £8.9m, which relates to a new reinsurance agreement on its closed book of protection business.

Funds under management rose by 29 per cent from £30.9bn to £39.9bn.

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