Strong client retention meant St James’s Place’s (STJ) net inflows were higher during the first half, which offset a downturn in new funds entering its investment management arm. The slowdown in gross inflows also resulted in thinner margins on new business. Based on its experience in July, management expects the value of third quarter new business flows to be similar or slightly lower than the second quarter as the economy struggles to recover from lockdown.
Negative net investment returns of £5.8bn also meant funds under management closed June down marginally on the end of the prior year at £116bn, although that was still ahead of consensus expectations of a fall to £115bn. However, it was a rise in the Financial Services Compensation Scheme levy of more than half that truly eroded the underlying cash result, which declined by almost a tenth. Adviser numbers were 1 per cent higher at 4,324, but a pause in recruitment to its academy could mean the growth rate slows over the coming months.
Panmure Gordon forecasts underlying EPS of 34.7p for 2020, rising to 40.9p the following year.
| ST JAMES'S PLACE (STJ) | ||||
| ORD PRICE: | 970p | MARKET VALUE: | £ 5.21bn | |
| TOUCH: | 969.6-970.4p | 12-MONTH HIGH: | 1,206p | LOW: 614p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 190p | |||
| Half-year to 30 Jun | Fee income (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 1.25 | 457 | 8.7 | 18.49 |
| 2020 | 0.79 | -71.9 | 33.4 | 0.0 |
| % change | -37 | - | +284 | - |
| Ex-div: | na | |||
| Payment: | na |
