Adjusted Pre-Tax Profit Slips At St James's Place In H1 2026

Tom Burroughes

30 July 2026

Yesterday, reported a fall in its half-year adjusted profits for the six months to end-June 2026, even as funds under management rose to a record level and gross inflows held steady.

Adjusted profit before tax fell to £278.4 million ($371.7 million) from £307.0 million a year earlier. After tax, adjusted profit slipped by 5 per cent to £224.4 million, according to a statement this week.

On a statutory basis, the company reported IFRS profit after tax of £310.8 million for the period.

The firm’s chief financial officer, Caroline Waddington, said it aims to take out £100 million of cost per annum from its addressable costs base. It expects to reinvest about half of the cost savings over the period to 2030, resulting in a significant reinvestment envelope of around £260 million. “That level of reinvestment is an important enabler for the next phase of our strategy,” she said.

The UK-listed group declared an interim dividend of 6.00 pence per share and reiterated a capital return approach combining dividends with buybacks.

Assets under management rose to £240.8 billion at end-June 2026, up from £220.0 billion at end-2025, supported by positive market performance and ongoing net inflows. SJP noted an annualised investment return of 16.4 per cent, explaining why AuM growth outpaced net new money.

Net inflows were £2.7 billion, down from £3.8 billion in H1 2025. Advisor numbers at SJP rose to 4,951, with client numbers reaching more than one million. SJP grew its client base by a net 27,000 clients, an increase of nearly 3 per cent in six months.

So far this year, SJP’s shares have been in decline, falling more than 25 per cent since 1 January.

Charging controversy
St James’s Place has been hit by controversy over the charging policy of some of its advisors. The group has been reportedly made to refund hundreds of clients who were charged twice. In some cases, clients incurred double fees on their wealth and investments. The issue is understood to have been centred on international bonds (source: Financial News, 24 July). The Daily Telegraph reported yesterday that most of the affected clients have already been reimbursed, with the remainder set to receive refunds within the next few months.

The Financial Conduct Authority’s Consumer Duty regime – designed to improve how firms prove they deliver fair value and outcomes that match what is promised – has pushed advice businesses to document and, in some cases, change their charging structure. St James’s Place has reshaped its charging approach, incurring costs and more client engagement which can increase client attrition in the short run.

In its results statement, SJP set out its business model and charging structure.

“When clients choose to invest with us, our funds under management (FUM) grows. Our income is based on the value of FUM, and so attracting new clients to invest with us, retaining the investments made by existing clients, and positive investment performance are key to future growth in income and hence returns.

“Under our new charging structure, we benefit from all charges applying from the day that a new investment is made, and we earn a margin on each aspect of the holistic service we provide to clients: financial advice, product and fund management. This differs from our previous charging structure, where our primary profit driver was ongoing product charges.

“Most of our investment bond and pension business did not incur these charges for the first six years after an investment was made. We refer to FUM in this period as being in ‘gestation’. FUM rolls out of gestation into ‘mature’ FUM six years after initial investment, at which point it becomes subject to ongoing product charges for the first time,” SJP said.