St James Place set to buy Asian firm as profits rise 42 per cent

25th Feb 2014 08:48

Wealth management group St James's Place said it was close to finalising the purchase of an Asian financial advisor business as it reported a 42 per cent increase in profits before shareholder tax of 190.7m pounds for 2013. Operating profits on an European Embedded Value (EEV) basis were £462.7m, an increase of 26% in St James's first year as an independent FTSE company after Lloyds Banking Group sold its 57% holding.Shareholders will receive a 50% increase in the full-year dividend to 15.96p reflecting the higher underlying cash result of £139.9m, up 67%. The company also forecast a 30-40% dividend rise in 2014.New single investments of £7.2bn were 22% higher than 2012, with St James's clients investing across life, pension and unit trust / ISA investment tax wrappers. Funds under management increased 27% to £44.3bn.St James's said it expected to seal its purchase of the "well-respected" Asian business, which provides financial advice to British expatriates in Singapore, Hong Kong and Shanghai, in the first few months of this year. Looking forward, Chief Executive David Bellamy said UK economic policy, along with long-term low interest rates "appears to be finally bearing fruit, with signs that the economy is improving"."The key indicators on growth and employment are looking more positive now than at any time in the last five years," he said."Over the last 12 months, the slowly improving economic backdrop and the continued low interest rates have been key to the growth in investment markets in the UK, US and Europe, albeit at the expense of savers in traditional bank and building society accounts.""Leading on from these profit results, we continue to see a growing cash result, a trend that is expected to continue with the increasing maturity of funds under management," Bellamy said.St James's Place shares were up 29p, or 3.65%, at 823.5p at 08.46 Tuesday.FP