From Morningstar: 2024-07-30 07:33:00

Shares in St James’s Place (STJ) surged over 25% after announcing a £100 million cost-cutting plan for stability. The business posted underlying pre-tax profits of £220 million in the first half of 2024, with net inflows of £1.9 billion. Record funds under management reached £181.9 billion due to strong investment returns. CEO Mark FitzPatrick aims for efficiency and effectiveness.

SJP has faced a challenging year, including FCA pressure to overhaul fee models for new clients. Shares dropped nearly 27% in the past year, Last year, they announced a full-year loss of £4.5 million. However, better-than-expected results and cost reductions have now driven shares up. SJP plans to achieve £100 million in cost savings by 2026, reinvesting half back into the business.

Regulatory pressure on SJP is not just about fees but also transparency. The company made fee changes last year following FCA pressure to remove penalties for early product withdrawals. Concerned investors like Philip Rose have questioned the business’s practices and have called for further scrutiny. SJP aims to position itself for long-term success amid ongoing regulatory challenges.



Read more at Morningstar: Why Are Shares in St James’s Place Suddenly Soaring?