St. James's Place plc (SJP) has reported robust business performance for the first half of 2024, demonstrating resilience and achieving record funds under management. The company's CEO, Mark FitzPatrick, highlighted the high levels of activity and engagement between advisers and clients, contributing to positive flows. SJP has made progress in simplifying its charging structure and reviewing historic client servicing records, with plans to deliver the new charging structure in the second half of 2025.
The company has conducted a thorough review of its business and the markets in which it operates, reinforcing the conviction that SJP remains a strong business with significant opportunities ahead. The strategic focus will be built around four pillars: simplifying and standardizing operations, enhancing the client proposition, maintaining a leading adviser offering, and fostering a performance-focused organization.
SJP plans to increase strategic investment over time, funded through optimizing its existing addressable cost base. The company aims to deliver an addressable cost base reduction program, reaching full run-rate savings of £100 million by 2027. It anticipates cumulative net savings of approaching £500 million through to 2030, after costs to achieve. Approximately half of these savings will be reinvested back into the business between 2025 and 2030, supporting strategic initiatives and underpinning long-term growth ambitions.
The half-year report also includes operating and financial highlights, such as gross inflows of £8.5 billion, net inflows of £1.9 billion, record funds under management of £181.9 billion, and a net 3% increase in the client base to 988,000. The underlying post-tax cash result was £205.2 million, and the IFRS profit after tax was £165.1 million. The interim dividend was 6.00 pence per share, and an interim share buyback of £32.9 million was announced.
Overall, the report indicates that SJP is positioning for further success, with a clear direction of travel towards achieving sustained success. The company is confident that its refreshed strategic focus leaves it well-placed for a bright future ahead.