View more on these topics

SJP sees distribution profits rise 5 per cent

St. James’s Place has announced an increase in pre-tax profits for its distribution arm by 5 per cent to £6.1m in 2011, compared to £5.8m in 2010.

The firm’s overall pre-tax profits fell 86 per cent on an IFRS basis from £161.9m in 2010 to £21.3m in 2011 while pre-tax profits on an EEV basis for the business fell 58 per cent from £455m to £190.8m.

The IFRS profit before shareholder tax for 2011 was £109.7m, an increase of 30 per cent compared to £84.2m in 2010, when accounting for an £88.4m tax credit in 2011.

SJP chief executive David Bellamy says the drop in pre-tax profits is a result of investment return variance which rose 53 per cent from £117.6m in 2010 to £180.4m in 2011.

He says: “It is a consequence of the calculation of embedded value it is not a consequence of the performance of the business. If stock markets rise through the year then you will see that investment return variance come shooting back in.”

Bellamy added that although a small number of advisers will exit the business by the end of 2012, it expects to see its overall adviser numbers increase over the year.

He says: “Recently we have seen a year-on-year increase of between 5 and 6 per cent and we would expect to see that again in 2012.”

The firm saw an increase of 6 per cent in its adviser numbers in 2011, taking the total to 1,649.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm