St James’s Place (LSE: STJ) shares jumped 25% on Tuesday, ending at 697.00 pence in London. This big rise came after the wealth management firm reported better-than-expected results for the first half of the year.

The company’s performance was driven by several key factors:

  • Increased inflows: St James’s Place saw gross inflows of £8.53 billion in the six months to June 30, up from £8.04 billion last year. This shows the firm is still attracting new investments.
  • Record funds under management: The company’s total funds reached £181.86 billion, up from £157.52 billion a year ago and £168.2 billion at the end of 2023. This growth indicates both client retention and good investment performance.
  • Profit growth: IFRS pretax profit rose 4.4% to £225.1 million, while earnings per share increased 1.7% to 30.1 pence.
  • Cost-cutting plans: St James’s Place announced a programme to reduce costs by £100 million annually by 2027. This is about 15% of its current cost base.
  • Share buyback: The firm plans to buy back £32.9 million worth of shares, equal to about 6.00 pence per share.

While the company cut its interim dividend to 6.00 pence from 15.83 pence, the share buyback seems to have offset any negative reaction from investors.

CEO Mark FitzPatrick said the company saw “high levels of activity and engagement” between advisers and clients, leading to positive cash flows.

These results appear to have reassured investors about St James’s Place’s financial health and future prospects, despite its recent removal from the FTSE 100 index. The strong performance and plans for cost savings have clearly impressed the market, leading to today’s sharp share price rise.


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