St. James's Place Reports Strong Financial Performance for 2024
Why we think this is good
St. James's Place has delivered a robust financial performance in 2024, demonstrating resilience and growth in a challenging economic environment. The company's IFRS profit after tax significantly improved from a loss in 2023 to a substantial profit of £398.4 million in 2024. The Underlying cash result also saw a healthy increase to £447.2 million. With gross inflows up by 20% and total funds under management growing by 13% to £190.2 billion, the company has shown strong momentum in attracting and retaining client assets. The client base has now surpassed 1 million, reflecting the company's expanding market presence. While there are some areas of caution, such as the slight decrease in client retention rates and the ongoing implementation of a new charging structure, the overall financial health of the company appears strong. The increased EEV and IFRS net asset values per share further underscore the company's growing intrinsic value. However, investors should be mindful of the execution risks associated with the ongoing changes in the business model and the broader economic uncertainties mentioned in the outlook.
Key Points
- IFRS profit after tax increased to £398.4 million from a loss in 2023
- Underlying cash result grew to £447.2 million
- Total funds under management rose by 13% to £190.2 billion
- Gross inflows increased by 20% to £18.4 billion
- Client base surpassed 1 million with a retention rate of 94.5%
- New charging structure to be implemented by second half of 2025
- Cost efficiency program aims to save £100 million per annum by 2027
- Strong capital position with surplus assets of £892.2 million over management solvency buffer
- EEV net asset value per share increased to £16.25
- Final dividend of 12.00 pence per share declared
Summary
St. James's Place has reported strong financial results for 2024, with IFRS profit after tax increasing to £398.4 million from a loss in the previous year. The company's Underlying cash result grew to £447.2 million, and total funds under management rose by 13% to £190.2 billion. Gross inflows saw a substantial increase of 20% to £18.4 billion, although net inflows decreased slightly. The company has now surpassed 1 million clients, maintaining a strong retention rate of 94.5%. St. James's Place is progressing with the implementation of a new charging structure and a cost efficiency program, aiming to deliver savings of £100 million per annum by 2027. The company's financial position remains robust, with a strong capital position and improved Solvency II net assets. While the outlook is generally positive, with the company seeing compelling opportunities in UK wealth management, there are some execution risks and economic uncertainties to consider.