St James's Place outlines new growth targets, cost-cutting measures

30th Jul 2024 08:06

(Sharecast News) - Wealth management firm St James's Place outlined new growth targets and cost-cutting measures on Tuesday, sending the shares higher on early trading.

St James's Place said it was aiming to cut roughly £100.0m per year by 2027 in order to generate cumulative savings of approximately £500.0m until 2030, half of which will be reinvested in the business.

The FTSE 250-listed firm said the plan would boost the amount of money it manages by "mid-to-high single digits".

In terms of earnings, St James's Place said H1 net inflows had shrunk from £3.4bn to £1.9bn, while total assets under management rose to a record £181.9bn, up from £157.5bn at the same time a year earlier.

SJP also said it had set aside £426.0m for potential client refunds in FY24 as it received a number of complaints from clients who claimed they did not receive an appropriate level of financial advice.

Chief executive Mark FitzPatrick said: " We are positioning for further success, and I am confident that our refreshed strategic focus leaves us well placed for a very bright future ahead."

As of 0925 BST, St James's Place shares had shot up 20.86% to 675.0p.

Reporting by Iain Gilbert at Sharecast.com