Advertisement
UK markets closed
  • FTSE 100

    7,895.85
    +18.80 (+0.24%)
     
  • FTSE 250

    19,391.30
    -59.37 (-0.31%)
     
  • AIM

    744.89
    -0.40 (-0.05%)
     
  • GBP/EUR

    1.1633
    -0.0050 (-0.43%)
     
  • GBP/USD

    1.2401
    -0.0037 (-0.30%)
     
  • Bitcoin GBP

    52,007.88
    +767.38 (+1.50%)
     
  • CMC Crypto 200

    1,386.78
    +74.16 (+5.99%)
     
  • S&P 500

    4,991.91
    -19.21 (-0.38%)
     
  • DOW

    37,968.63
    +193.25 (+0.51%)
     
  • CRUDE OIL

    83.02
    +0.29 (+0.35%)
     
  • GOLD FUTURES

    2,408.30
    +10.30 (+0.43%)
     
  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     
  • HANG SENG

    16,224.14
    -161.73 (-0.99%)
     
  • DAX

    17,737.36
    -100.04 (-0.56%)
     
  • CAC 40

    8,022.41
    -0.85 (-0.01%)
     

St James's Place sees no Brexit impact after forecast-beating first half

* Net H1 inflows 3.1 bln stg after record second quarter

* CEO says looking for hiring opportunities post-Brexit vote

* Shares (Berlin: DI6.BE - news) up 6 pct, leading gainer on the FTSE 100 (Adds detail from statement, analyst quote, share reaction, bullet points)

By Simon Jessop

LONDON, July 27 (Reuters) - Wealth manager St James's Place posted a forecast-beating rise in funds under management in the first half of the year after record second-quarter net inflows, sending its shares up 6 percent to a two-month high.

The group has benefited from strong demand for its face-to-face advice from savers looking to better invest their money amid a number of changes to the pensions and savings system, and said on Wednesday the trend had continued since January.

ADVERTISEMENT

"Whilst the UK's decision to leave the EU has created a period of economic uncertainty ... the challenges and responsibilities that many people face when considering how to manage their wealth, and the ever-changing tax considerations, remain," Chief Executive David Bellamy said in a statement.

Bellamy said the group had seen no negative impact from the June 23 vote and would be looking for opportunities to hire staff and expand its network of advisers as the industry fallout becomes clearer.

"Our stated objective is to grow the business between 15 and 20 percent per annum and since the 24th of June, our business has continued very much in line with those medium-term objectives," Bellamy told Reuters.

The company posted net inflows of 3.1 billion pounds, up 15 percent from the previous year and beating a company-supplied consensus forecast of 2.7 billion, helped by a record 25 percent rise in inflows in the second quarter.

That pushed total funds under management to 65.6 billion pounds and cash reserves to 94.4 million, comfortably beating consensus estimates of 84.9 million and helping underpin a 15 percent increase in the interim dividend.

By 0713 GMT the stock was up 6 percent at 937 pence, making it the leading gainer in the blue-chip FTSE 100.

Calling the results a beat across almost all metrics, Shore Capital (Other OTC: CGHC - news) analyst Eamonn Flanagan reiterated a "buy" recommendation and said he expected the market to respond favourably to "overall excellent delivery". (Editing by Sinead Cruise and David Holmes)