St James’s Place has announced that its total profit has increased in the first half of this year from £183.6m to £220.5m, on the back of record sales and new business figures.
In its half year results, published today (26 July) the firm said that new business increased to £353.9m in the first six months of this year compared to £335.6m at the end of December 2011.
However, although its total profit has increased new business profits dropped slightly over the period to £120.6m from £127.7m.
Funds under management rose 8 per cent to £30.9bn since the start of the year, driven in part by continuing strong net inflows of £1.5bn. This figure, though, is down from the £1.65bn of inflows recorded in the previous six months.
Profit before shareholder tax increased to £58.9m compared to £55.3m, meaning that that the net asset value per share has jumped to 141.7p compared to 127.4p at the end of 2011.
In addition to the robust financial performance, the wealth manager also stated that it is well advanced in preparations for the incoming Retail Distribution Review, with 97 per cent of its partners qualified at diploma level or “within one or two exams”.
David Bellamy, chief executive officer, said: “During the first half of the year we attracted £2.76bn of new funds which, together with the continued strong retention of existing client funds, has resulted in our funds under management growing by 8 per cent to £30.9bn.
“As expected the cash emergence from the existing business has grown strongly enabling us to announce a 33 per cent increase in the interim dividend.
“We are also attracting a number of very experienced new advisers and consequently we are extremely well placed for the new regulatory regime that will become effective at the end of the year.
“Despite the continued concerns surrounding Europe, we have a predictability about our new business flows and remain positive about our ability to deliver further growth for the remainder of the year.”