St. James's Place PLC has released its financial results for the year ended 31 December 2023. The company reported a robust underlying financial performance, with a pre-tax underlying cash result of £483.0 million, in line with the prior year. However, the post-tax cash result was significantly impacted by a one-off provision of £426.0 million pre-tax (£323.7 million post-tax) established for potential client refunds linked to the historic evidencing and delivery of ongoing servicing.
The company also reported an IFRS loss after tax of £(9.9) million, a change from the £407.2 million profit in 2022. The EEV net asset value per share was £14.11, down from £16.66 in 2022.
In terms of shareholder distributions, St. James's Place PLC announced a final dividend of 8.00 pence per share, resulting in a full-year dividend of 23.83 pence per share. The company also revised its future dividend guidance, with total annual shareholder distributions set at 50% of the full-year underlying cash result. This will comprise a fixed full-year dividend of 18.00 pence per share for each of FY2024, FY2025, and FY2026, with the balance of distributions delivered through share repurchases.
Mark FitzPatrick, Chief Executive Officer, acknowledged the challenging backdrop for UK savers and investors but highlighted the company's resilient business performance, driven by strong net inflows, high client retention, and record funds under management. He also addressed the impact of the provision on the company's financial results, stating that the Board recognizes the importance of returns to shareholders and is confident that sufficient capital and liquidity are available to deal with the financial impact of the provision.
Looking ahead, the company expects the industry outlook to remain challenging in the near term but is confident in its ability to navigate the challenges it faces. St. James's Place PLC has raised its standards around the delivery and evidencing of ongoing client servicing and announced changes across its business, including its charges structure, to ensure it is well-positioned for the future.