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(Sharecast News) - St James's Place reported higher profits and record funds under management for 2025 on Wednesday, as the UK wealth manager accelerated shareholder return plans following what it described as a year of "strong delivery and execution".
The FTSE 100 company posted a post-tax underlying cash result of 462.3m for the year ended 31 December, up 3% from 447.2m in 2024.
Post-tax underlying cash basic earnings per share rose 6% to 87p, while IFRS profit after tax increased 33% to 531.4m from 398.4m a year earlier.
"I am pleased to report a year of significant progress for St James's Place," said Mark FitzPatrick, chief executive.
"We delivered growth in new business, growth in funds under management, and growth in the underlying cash result, while at the same time delivering strong returns for our growing number of clients.
"We have also executed against our key priorities as we position for the future."
He added that 2025 achievements "underscore the enduring need and demand for trusted financial advice" and "demonstrate the strength of our unique partnership model".
FitzPatrick said the group was investing further in its capabilities, including enhancing technology and tools for advisers, with the goal "to free our advisers to focus on what they do best - building trusted relationships and delivering truly invaluable advice."
Operationally, the group reported strong growth in both gross and net inflows, with funds under management reaching a record 220bn at year-end.
The firm said it had successfully implemented its new simple, comparable charging structure and that its cost and efficiency programme remained on track with guidance.
St James's Place also continued to progress its historic ongoing service evidence review, recording a 18.7m post-tax additional release from the associated provision at year end, bringing total releases during 2025 to 82.1m.
The programme was expected to complete during 2026.
During the year, the firm also launched its new Polaris Multi-Index range of funds, broadening the investment options available to its 1,037,000 clients.
Total ordinary shareholder returns for 2025 amounted to 231.2m, representing 50% of the underlying cash result.
That comprised a proposed final dividend of 12p per share, unchanged from 2024, taking the total dividend for the year to 18p per share, also flat year-on-year, and 136m of share buy-backs in respect of 2025, up from 125.5m in 2024.
In addition, 63.4m was returned through share buy-backs following a release from the ongoing service evidence provision announced at the half-year stage, and a further 18.7m would be returned via buy-backs reflecting the additional year-end release.
Total shareholder returns for the 2025 financial year were 313.31m, compared with 222.7m in 2024.
Reflecting what the board described as continued strong financial, operational and strategic progress, St James's Place said it would accelerate its future approach to capital returns.
From the 2026 financial year onwards, total annual shareholder returns would be set at 70% of the underlying cash result, up from 50% currently, delivered through a combination of ordinary dividends and share buy-backs.
Ordinary dividends were expected to account for at least 40% of total shareholder returns, equivalent to at least 28% of the underlying cash result.
The board said it intended to pay an interim dividend of 6p per share and conduct an interim buy-back following the 2026 half-year results, with the buy-back expected to amount to one third of the 2025 total ordinary buy-backs, excluding those relating to releases from the ongoing service evidence provision.
"The combination of another strong financial outcome together with good operational and strategic progress, has enabled the board to update our shareholder returns guidance a year earlier than originally planned," FitzPatrick said.
"We look to the future with confidence.
"While the external consumer outlook remains uncertain, the changes we have already made to our business, combined with our focus to strengthen and grow SJP over the long-term, mean we are well positioned to capture the structural market opportunity ahead and deliver for all our stakeholders in 2026 and beyond."
At 0904 GMT, shares in St James's Place were up 4.01% at 1,310p.
Reporting by Josh White for Sharecast.com.
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