St. James's Place's profit drops despite positive results

25th Feb 2016 08:25

(ShareCast News) - Despite a mostly positive set of results, St. James's Place's profit before tax has dropped 17.3%.The FTSE 100 wealth management company said that for the year to 31 December 2015, operating profit on a European embedded value basis was up from £596.4m to £660.2m.The company's net asset value per share had also risen from 657.9p to 737.3p under the same reporting basis, with funds under management up from £52.0bn to £58.6bn.It also posted record gross inflows of £9.24bn, up from £7.88bn in 2014.However on an International Financial Reporting Standards basis, profit before tax fell from £182.9m to £151.3m.The results were hit by a significant £14.2m increase in the group's levy to the Financial Services Compensation Scheme, as well as a negative £21.7m change in the movement of certain accounting intangible assets and liabilities.St. James's Place chief executive David Bellamy said despite the continued uncertainty in world stock markets, strong growth across all key areas demonstrated the resilience of the business."The continuing growth and maturity in funds under management has, as expected, translated into continued growth in the underlying cash result," he said."Our success has been, and continues to be, built on our fundamental belief that for most people their finances and wealth are personal and they want to be treated in a highly personalised way and by someone they trust."We see a growing demand for sound, personal, financial planning advice as individuals recognise the financial implications of increased life expectancy, whilst being faced with increasingly complex options in respect of their investments."Bellamy said the group remained well placed to continue its growth in 2016 and beyond in line with medium term objectives.Shares in St. James's Place were down 8p (0.93%) to 848.5p at 0858 GMT.