Wealth manager St James's Place (STJ) posted very encouraging full-year results, including a 29 per cent rise in operating profit (on an embedded value basis) to £596m. The uplift was achieved despite a £10.9m loss from the group's distribution business, partly attributable to a £5.9m Financial Services Compensation Scheme levy. The figures were crowned by a near-50 per cent hike in the annual dividend, which brings the payout ratio within sight of management's new 75 per cent target.
Funds under management rose to £52bn, from £44bn at the end of 2013, while St James's also posted a 14 per cent increase in European embedded-value net asset value to 658p. St James's added around 50,000 new clients to its books in 2014, but the success of the group's hands-on approach can best be gauged by its 96 per cent underlying retention rate.
This year promises to be a landmark year for the group, with the launch of a major new banking service, the St James's Place Money Management Account, in April. In another departure from the traditional high street offering, the venture in partnership with Metro Bank will provide eligible St James's clients with a standard banking service, including an overdraft worth up to 40 per cent of their investments.
Broker Panmure Gordon anticipates 2015 EPS of 32.9p.
| ST JAMES'S PLACE (STJ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 928p | MARKET VALUE: | £4.8bn | |
| TOUCH: | 927-929p | 12-MONTH HIGH: | 928p | LOW: 637p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 194p | EMBEDDED VALUE: | 658p | |
| Year to 31 Dec | Gross life premiums (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 78.5 | 84 | 11.4 | 6 |
| 2011 | 73.4 | 110 | 21.9 | 8 |
| 2012 | 66.1 | 135 | 21.5 | 10.64 |
| 2013 | 61.2 | 191 | 37.4 | 15.96 |
| 2014 | 57.4 | 183 | 36.6 | 23.3 |
| % change | -6 | -4 | -2 | +46 |
Ex-div: 9 Apr Payment: 15 May *Includes intangible assets of £868m, or 167p a share | ||||
