St James's Place success clouded by dual accounting approach
The UK wealth manager reported a surge in new business last year but questions remain over its profitability when measured by different accounting standards.
St James's Place, the UK wealth manager 60% owned by banking group HBOS, reported new business rose 23% and funds under management rose 18% to £18.2bn. (€24.1bn) in the year to December. The company continues to target business growth of 15% to 20% a year.
But the picture is clouded by St James's use of two different accounting policies, which suggest a more mixed picture for its profitability.
Under its preferred European Embedded Value policy, operating profits rose 39% to £244.7m.
Using the more generally recognised International Financial Reporting Standards, operating profits fell 10.6% to £96.1m following a series of one-off costs. Ignoring the one-offs, operating profits on this basis would have been down 2% to £76.4m.
The number of partners within St James's ranks of advisers rose 8% to 1,251 at the year end, representing St James's fastest growth since 1999.
Chairman Mike Wilson will be 65 in December, but he has agreed to remain in position, progressively on a three day a week basis, until he is 68.
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