Underlying Cash Result
St. James’s Place is set to reveal its 2023 results on Wednesday. Analysts are expecting the wealth-management company to announce an underlying cash result of 409.0 million pounds ($518.8 million) for the 12 months ending Dec. 31, slightly lower than the previous year’s figure of GBP410.1 million.
Dividend Expectations
Investors are anticipating a full-year dividend payout of 51.42 pence per share, reflecting St. James’s Place’s commitment to returning around 70% of its underlying cash result to shareholders. This figure is slightly below last year’s dividend of 52.78 pence per share.
Stock Performance
Despite trading at around 615 pence in London, St. James’s Place shares have experienced a significant decline, dropping by 50% in value over the past year.
Key Focus Areas
- CEO’s New Business Outlook: Chief Executive Mark FitzPatrick will provide insight into the company’s future direction, marking his first results presentation since assuming the role in December. Investors will be keen to hear about the management’s vision for 2030 as they assess the performance and strategy of St. James’s Place.
Analysis of Pricing Changes Impact
The group’s fees are under scrutiny following the announcement in October regarding changes to their charging structure and the anticipated impact on cash earnings. Jefferies predicts discussions on potential effects of these price adjustments on client behavior, although they won’t take effect until April 2025. There is anticipation that people may have already adjusted in response. Citi analyst Andrew Baker expects management to confirm that there are no plans for further fee reductions at this time.
Financial Performance and Growth
St. James’s Place recently revealed that funds under management for 2023 amounted to GBP168.20 billion at year-end, a significant increase from GBP148.37 billion the year before. Despite lower net flows in the fourth quarter, which disappointed investors and pressured the stock’s performance, the company’s growth trajectory remained positive. The number of advisers also saw a rise to 4,834 by the end of the year, surpassing consensus expectations of 4,842. Citi analysts highlight that this growth indicates that the changes in the charging structure have not deterred advisers from their roles.