REG - St. James's Place - Half-year Report
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RNS Number : 2676T St. James's Place PLC 31 July 2025
PRESS RELEASE AND HALF-YEAR REPORT AND ACCOUNTS 2025
31 July 2025
ANNOUNCEMENT OF HALF-YEAR RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
CONTINUED STRONG OPERATING AND FINANCIAL PERFORMANCE
St. James's Place plc (SJP) today issues its half-year results for the six
months ended 30 June 2025:
Mark FitzPatrick, Chief Executive Officer, commented:
"I am pleased to report strong operating and financial performance in the
first half of 2025. During the period our highly qualified, professional
advisers helped over one million clients to navigate a complex macroeconomic
environment, ensuring clients' financial plans remain on track for the future.
This resulted in gross inflows of £10.5 billion, up 23% on the first half of
2024. Retention(1) of client funds under management (FUM) remained high,
leading to net inflows of £3.8 billion - double the net inflows we saw in the
first half of 2024. This, together with positive investment performance for
clients, drove FUM to a record £198.5 billion, underpinning a strong
Underlying cash result(2) of £240.4 million.
Beyond new business, the first half was a busy period of heavy lifting as we
progressed in delivering our key programmes of work. We expect our new simple,
comparable charging structure to be in place from 26 August 2025, and we look
forward to achieving this important milestone. Meanwhile, our cost and
efficiency programme is proceeding as expected and we are confident in
delivering against our plan to take around £100 million out of our
addressable cost base(3) by 2027. Finally, our programme to review historic
client servicing records is progressing. Following the FCA's new industry
guidance around ongoing financial advice services, issued in February 2025, we
have revised our redress methodology to better align it with both the new
industry guidance and our experience from the project to date. This revised
redress methodology has led to an £84.5 million release in the Ongoing
Service Evidence provision. After tax this release equates to £63.4 million,
which we will be returning to shareholders in full through a share buy-back.
Alongside delivering our key programmes, we have progressed with our strategic
priority to broaden our investment shelf for clients. Our investment team has
worked hard developing Polaris Multi-Index, a new range of multi-asset funds,
which we hope to launch in late 2025 subject to regulatory approval.
The strategic progress we are making will strengthen our business for the
future, ensuring we are best placed to continue to capitalise on the
compelling market opportunity in UK wealth management. The demand and need for
financial advice are high and here to stay. We have more than one million
clients already securing their long-term financial futures through the power
of invaluable advice, and we are driven by our desire to help more people
achieve this. I see an exciting future with SJP as the clear home of trusted
financial advice in the UK, delivering great outcomes for clients and all our
other stakeholders."
Operating highlights
· Gross inflows of £10.5 billion (2024: £8.5 billion)
· Retention remained high at 95.3%(1) (2024: 94.6%(1))
· Net inflows of £3.8 billion (2024: £1.9 billion), representing
an annualised 4.0% of opening funds under
management (2024: 2.3%)
· Record funds under management of £198.5 billion (31 December
2024: £190.2 billion)
Financial highlights and shareholder returns
· Post-tax Underlying cash result of £240.4 million(2) (2024:
£205.2 million), up 17% period-on-period
· IFRS profit after tax of £279.5 million (2024: £165.1 million)
· EEV net asset value per share £17.43(2) (31 December 2024:
£16.25)
· Interim dividend of 6.00 pence per share (2024: 6.00 pence per
share)
· Interim share buy-back of £32.1 million (2024: £32.9 million)
· Additional share buy-back of £63.4 million following the Ongoing
Service Evidence provision release
(2024: £nil)
Other highlights
· Continued growth in client numbers and adviser headcount
· Investment returns, net of all charges, represented 4.7% of
opening funds under management (annualised)
The details of the announcement are below.
Enquiries:
Hugh Taylor, Director - Investor Relations Tel: 07818 075143
Angela Warburton, Director - Communications Tel: 07442 479542
Brunswick Group: Tel: 020 7404 5959
Eilis Murphy Email: sjp@brunswickgroup.com (mailto:sjp@brunswickgroup.com)
Charles Pretzlik
(1) Throughout this press release our retention rate is calculated as the
proportion of FUM retained over the period after allowing for the effect of
full and partial withdrawals, but excluding the effect of intrinsic regular
income and maturity payments.
(2) The Underlying cash result and EEV net asset value per share are
alternative performance measures (APMs). The glossary of alternative
performance measures defines these APMs and explains why they are useful. The
Underlying cash result is reconciled to International Financial Reporting
Standards (IFRS) in the supplementary information section.
(3) The addressable cost base is total IFRS expenses, less those which were
either out of scope for the business review conducted in July 2024, one-off in
nature or outside of management's control.
2025 Half Year Results Presentation
Date: 31 July 2025
Webcast available on-demand from: 07:00 BST
Live Q&A: 08:00 BST
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Chief Executive Officer's report
I am pleased to report a strong operating and financial performance for the
first half of 2025, demonstrating yet again the quality of our advice-led
business model and the value that over one million clients place in the
trusted relationships they enjoy with our 4,952 advisers.
Operating performance
Macroeconomic conditions in the first half of the year have continued to be
complex and evolve. More positively, interest rates have fallen and are
expected to trend lower over time, which has meant mortgage rates are
reducing. On the other hand, there has been significant market volatility,
increased geopolitical tension, and much speculation about changes in the
domestic tax, savings and investment landscapes. Uncertainty has remained
high.
This makes it a difficult environment for consumers, but one which really
underscores the benefits of holistic financial advice. The trusted
relationships our highly qualified, professional advisers have built with
clients means they are ideally placed to help clients navigate the uncertainty
and focus on the long term, ensuring they are on the right path to secure
their financial futures.
Against this backdrop, we are pleased with our operating performance. Gross
inflows for the first six months of 2025 were £10.5 billion, up 23% on the
same period last year and continuing the momentum that began to build across
2024. Retention of client funds under management (FUM) remained high at 95.3%
(six months to 30 June 2024: 94.6%), resulting in net inflows of £3.8 billion
- double the net inflows we saw in the first half of 2024, and representing
4.0% of opening FUM on an annualised basis (six months to 30 June 2024: net
inflows of £1.9 billion, 2.3% of opening FUM).
Investment performance
Our investment management approach (IMA) continued to perform well for
clients, although of course we were not immune to the significant market
volatility during the period. Our portfolios delivered returns that were above
peer averages, supporting good outcomes for our clients. Our net investment
return for the first half of 2025 represented almost 5% of opening FUM on an
annualised basis, and that's after all charges, including advice.
Our investment returns, combined with sustained net inflows, drove our FUM to
a record £198.5 billion at 30 June 2025, up 4% on the 31 December 2024
position.
Financial performance
Our Underlying cash result of £240.4 million is up 17% on the first half of
2024, despite incurring additional charge structure implementation costs. Our
simple financial business model means this performance has been driven by the
increase in our FUM and new business, and the associated income we earn from
them. This is a strong financial result, which once again demonstrates the
power of our advice-led business model throughout the economic cycle.
Market opportunity
The market opportunity across all segments in UK wealth management is
compelling. UK individuals have £3.3 trillion in liquid investable assets,
which is expected to grow at 7% per annum, compound, to 2030(1). In the
advised space, we expect demand to only get stronger over time, driven by
systemic factors including the complexity of pension and taxation rules, and
the growing advice and savings gaps.
Many UK consumers lack the confidence to invest, with risk aversion driving an
overreliance on cash. For example, around 75% of ISA subscriptions are
directly to cash rather than stocks and shares ISAs(2), and the FCA recently
estimated that over seven million people hold more than £10,000 in cash(3).
The consequences of this are often not understood; recent research found that
more consumers expect cash to deliver better long-term returns than investing
in stocks, despite the evidence of history(4).
We believe financial advice is key to addressing these issues, and we are
passionate advocates for the wide-ranging benefits it can have. For example,
our research into financial wellbeing and the retirement landscape found that
individuals who have a financial plan in place are over £100,000 better off
on average than those without one(5), and they are more likely to be confident
they will achieve a comfortable retirement(6).
But we recognise that not everyone is able to access financial advice. There
are almost 25 million people in the UK who have never received any form of
financial advice or guidance(7). Therefore, we are supportive of wide-ranging
initiatives that aim to help consumers make better financial decisions. The
FCA's Advice Guidance Boundary Review is a good example of this, as is the
Investment Association-led campaign to promote the benefits of retail
investing. We'll continue to work with regulators, legislators and industry
peers to help influence the continued development of a marketplace that
enables consumers to have greater control and confidence in their finances.
As the scale operator in financial advice with a proven track record of
success and an industry voice that's increasingly heard, we're already well
positioned to capitalise on the compelling market opportunity. But we must
continue to earn the right to win by keeping our focus on delivering good
client outcomes at the heart of the business, and by delivering on our
strategic ambitions.
Our strategy
This time last year we set out our refreshed strategy, which takes us to 2030.
We indicated then that our near-term priorities were to strengthen our
fundamentals by embedding 'brilliant basics' into our systems and processes,
and safely delivering our key programmes of work: implementing our simple,
comparable charging structure, completing our historic ongoing service
evidence review, and executing our cost and efficiency programme. We've been
focusing on executing this 'strengthen' phase so that we position the business
for sustained success into the future, and so 2025 was always going to be
another year of heavy lifting.
In the first half we've made steps forward in 'brilliant basics', primarily
looking at how we standardise and simplify our operations. We've rationalised
existing systems and licenses, trialled several AI productivity tools to
support advisers with administrative and technical queries to enhance
efficiency, and spent time understanding the optimal way that some of our key
processes should run. This will allow us to remove some of the alternative
ways of working we have previously supported.
We have also made good progress with our key programmes of work:
· Simple, comparable charging
We are in the final stages of implementing our simple, comparable charging
structure, and we look forward to delivering this milestone achievement that
will set the business up for sustained success in the future.
The new charging structure will help to improve the perception of SJP and the
value of our proposition, making us more attractive to potential advisers and
clients. It also enables us to further build out our client proposition
through solutions such as Polaris Multi-Index.
We have informed clients of the forthcoming changes to their charges, which we
expect to take effect from 26 August 2025. We are fine-tuning and testing the
final aspects of our IT infrastructure build, and the Partnership are primed
and ready for the change.
· Historic ongoing service evidence review
We have progressed our review of historic client servicing records. Following
the FCA's new industry guidance around ongoing financial advice services,
issued in February 2025, we have revised our redress methodology to better
align it with both the new industry guidance and our experience from the
project to date. This revised redress methodology has led to a £84.5 million
release in the Ongoing Service Evidence provision. After tax this release
equates to £63.4 million, which we will be returning to shareholders in full
through a share buy-back.
We said from the outset that this is a very significant exercise that would
take the best part of two to three years to complete, and we look forward to
accelerating progress in the second half of this year as we embed our revised
approach at scale.
· Cost and efficiency programme
We are evolving how we operate to align with our strategy. To create the
capacity to invest in our strategic initiatives, as well as improve the Cash
result over time, our cost and efficiency programme has the ambition to take
around £100 million per annum before tax out of our addressable cost base by
2027. We are on track to deliver this.
We have been working on a range of operating efficiencies and have made
substantial progress in a number of the areas we outlined last year as being
in scope for our work.
Whilst we have been busy working through the initiatives in the 'strengthen'
phase, where we have had capacity within the business, we have begun to
progress with some elements of our 'amplify' phase of strategic development.
Most significantly our investment team has been developing Polaris
Multi-Index, a new range of multi-asset funds that will leverage our expertise
in active asset allocation while giving clients access to index tracking
funds. This will add further choice for our clients and provide us with the
opportunity to manage pockets of wealth that might be sat outside of SJP
today. We aim to launch it in late 2025, subject to regulatory approvals.
Summary
The first half of 2025 has been a very successful period for the business,
which is testament to the strength and quality of our advisers, employees and
all those within the SJP community. I thank them for remaining fully
committed to driving great client outcomes, particularly during a period of
significant ongoing change in the business.
The changes we are making will strengthen our business for the future,
ensuring we are best placed to continue to capitalise on the compelling market
opportunity in UK wealth management. Systemic factors mean that demand, and
need, for financial advice are high. We have more than one million clients
already securing their long-term financial futures through the power of
invaluable advice, and we are driven by our desire to help more people achieve
this.
At the heart of our business are personal, trusted relationships between our
advisers and clients. This supports a model that continues to prove itself
throughout every stage of the economic cycle. The power of our business model,
together with the work we are doing to further strengthen our fundamentals,
builds an exciting future for our business. I see SJP as the clear home of
financial advice in the UK, driving great outcomes for clients and all our
other stakeholders.
Mark FitzPatrick
Chief Executive Officer
30 July 2025
(1) GlobalData, Bain (2024)(
) (2) HM Revenue & Customs: Annual savings statistics (2024)
(3) FCA press release: Once-in-a-generation advice changes to help millions
navigate their financial lives (2025)
(4) J.P. Morgan Asset Management: Understanding UK savers (2025)
(5) St. James's Place Financial Health Report (2025)
(6) St. James's Place Retirement Report (2025)
(7) St. James's Place Real Life Advice Report (2024)
Chief Financial Officer's report
I am pleased to present a strong set of financial results for the first half
of 2025. This is underpinned by the value clients place in the trusted,
personal relationship they build with their adviser, as demonstrated by our
high retention levels.
Financial business model
Our financial business model is simple. When clients choose to invest with us
our stock of funds under management (FUM) grows. Our income is based on the
value of FUM, and so attracting new clients to invest with us, retaining the
investments made by existing clients, and positive investment performance, are
key to future growth in income and hence returns.
Our primary profit drivers are annual product management charges on FUM. Under
our current charging structure, most of our investment bond and pension
business is not subject to these charges for the first six years after an
investment is made. We refer to FUM in this period as being in 'gestation'.
FUM rolls out of gestation into 'mature' FUM six years after initial
investment, at which point it becomes subject to annual product management
charges for the first time. This provides a high degree of visibility to our
future income growth.
We expect our new simple, comparable charging structure to be in place from 26
August 2025. This is an important change for the financial business model.
From the point of implementation, we will benefit from all charges applying
from the day that a new investment is made. We will not have to wait six years
for new investment bond and pension business to contribute recurring income to
the Cash result. In addition, we will continue to benefit from existing
gestation FUM at the point of transition maturing to make a positive
contribution.
The dynamics of our new charging structure, together with the visibility of
future income growth from maturing FUM in gestation, build a powerful picture
of how our income can develop and compound in the medium term - conscious, of
course, of the expected dip in profitability in 2025 and 2026 as we transition
between structures.
Combined with our focus on managing expenses, whether they are fixed in nature
or vary with FUM or business levels, this supports our ambition to double the
Underlying cash result over the period from 2023 to 2030.
Financial performance in the first half of 2025
As Mark has already set out in his Chief Executive Officer's report, gross
inflows were up 23% period-on-period. Average mature FUM was up 13%.
These increases have driven growth in the income we receive from them.
Combined with management of expenses and the release from the Ongoing Service
Evidence provision which I cover in more detail below, this resulted in
improved profitability under both IFRS and our Cash result metrics. This is
despite incurring additional charge structure implementation costs compared to
the same period last year.
IFRS profit after tax of £279.5 million for the period is up 69%, and our
post-tax Cash result of £299.2 million is up 48%. Stripping out the impact of
the release from the Ongoing Service Evidence provision, IFRS profit after tax
is £216.1 million, up 31%. The Underlying cash result of £240.4 million is
up 17%; by definition this does not include one-off items such as the release
of the Ongoing Service Evidence provision.
Simple, comparable charges
We are in the final stages of implementing our new charging structure. The
implementation costs recognised in the first half of 2025 were £38.1 million
post-tax (six months to 30 June 2024: £25.0 million post-tax, year to 31
December 2024: £59.5 million), bringing the total spend recognised across the
project to date to £104.8 million post-tax. As we near implementation we are
confident that the overall cost of the programme will be in line with the
guidance we gave in February this year, which is for it to be towards the
upper end of our original guidance range of £105 million to £120 million
post-tax.
Historic ongoing service evidence review
Mark has provided an update on this significant programme of work in his Chief
Executive Officer's report.
From a financial perspective, our revised redress methodology means that our
Ongoing Service Evidence provision now stands at £320.0 million before tax
(31 December 2024: £425.1 million before tax), and we have released £84.5
million (six months to 30 June 2024 and year to 31 December 2024: £nil) from
the provision on a pre-tax basis. Further information about this can be found
in Note 11 to the IFRS Financial Statements.
In the post-tax Cash result, the release equates to £63.4 million. As the
creation of the provision was a key driver in reducing returns to
shareholders, the Board has decided that the release will be returned to
shareholders in full via a share buy-back programme.
Cost and efficiency programme
Through our cost and efficiency programme, we are taking around £100 million
per annum before tax out of our addressable cost base by 2027, creating
capacity to invest in our business to drive further growth, and underpinning a
growing Cash result over time.
We are making good progress. In addition to completing the implementation of
most of our organisational redesign work, we have made headway in several
other areas. These include optimising our commercial relationships with
suppliers and rationalising our property footprint.
We are on track to deliver the programme by 2027, and in line with the
financial guidance provided in July 2024. As expected, for the first half of
2025, the cost and efficiency programme has had no material impact on our
results. The costs to achieve the savings we have identified, plus
reinvestment spend, have offset the savings realised. We anticipate this will
also be the case for the remainder of 2025 and 2026, as we reinvest the
benefits we realise, net of costs to achieve, into the business to drive
future growth.
Financial position and solvency
We have a strong balance sheet which we manage prudently. We hold assets to
fully match our liabilities to clients, and we invest shareholder funds
predominantly in cash and AAA-rated money market funds. This strength is
confirmed by St. James's Place plc's 'A' credit rating from Fitch.
We also take a prudent approach to managing our capital requirements. Given
the simplicity of our business model, we hold a management solvency buffer
(MSB) on top of the assets we hold to match client liabilities. At 30 June
2025, the MSB was £575.9 million (31 December 2024: £548.4 million), and we
held assets over the MSB of £966.3 million (31 December 2024: £892.2
million). Most of this reflects investment to support the business and is
relatively illiquid in nature, for example our business loans to Partners.
We seek to run the Group in a capital efficient manner and return excess
capital to shareholders, subject to having liquidity and IFRS-retained
earnings capacity. The Group operates with substantial liquid balances, but it
is worth noting that much of this is already set aside for working capital
requirements including policyholder tax, funding for the Ongoing Service
Evidence provision, and to support our MSB.
Capital allocation
Our capital allocation framework sets out our disciplined approach to
allocating our capital resources:
1. We will maintain a strong balance sheet, ensuring the safety of client
investments.
2. We will invest to drive organic growth, ensuring we have the necessary core
capabilities in the business.
3. We will deliver reliable annual shareholder returns, which are in line with
guidance.
4. We will return excess capital over and above what we need to invest in the
business at attractive returns.
We see being deliberate and disciplined in how we allocate capital as critical
to ensuring we have a well-invested business that drives returns and creates
sustained value for shareholders.
Shareholder returns
For 2025 and 2026, the Board expects that annual shareholder returns will be
set at 50% of the full year Underlying cash result. This will comprise 18.00
pence per share in annual dividends declared with the balance returned through
share buy-backs.
For the first half of 2025, the Board has declared an interim dividend of 6.00
pence per share, together with an interim share buy-back of £32.1 million. In
addition to this interim share buy-back, as I set out earlier, we will be
buying back £63.4 million of shares as we return the post-tax amount released
from our Ongoing Service Evidence provision to shareholders. Together, this
means the total buy-back, which we will commence in August, will be for £95.5
million.
Summary
We are pleased with the performance of the business in the first half of 2025,
which has led to strong financial results. We have grown our Underlying cash
result by 17% despite market volatility during the period. Whilst our new
charging structure will drive the expected dip in profitability for the
remainder of 2025 and 2026 after it is implemented, we have a high degree of
visibility in compounding earnings going forward. This gives us confidence in
our ambition to double the Underlying cash result from 2023 to 2030.
Caroline Waddington
Chief Financial Officer
30 July 2025
Summary financial information
Six months ended Six months ended
30 June 2025 30 June 2024 Year ended
31 December
2024
FUM-based metrics
Gross inflows (£'Billion) 10.5 8.5 18.4
Net inflows (£'Billion) 3.8 1.9 4.3
Total FUM (£'Billion) 198.5 181.9 190.2
Total FUM in gestation (£'Billion) 51.1 49.5 50.1
IFRS-based metrics
IFRS profit after tax (£'Million) 279.5 165.1 398.4
IFRS profit before shareholder tax (£'Million) 367.9 225.1 535.9
IFRS basic earnings per share (EPS) (Pence) 52.0 30.1 73.0
IFRS diluted EPS (Pence) 51.6 29.9 72.6
Dividend per share (Pence) 6.00 6.00 18.00
Cash result-based metrics
Controllable expenses (£'Million) 155.0 144.9 291.7
Underlying cash result (£'Million) 240.4 205.2 447.2
Cash result (£'Million) 299.2 202.2 447.2
Underlying cash result basic EPS (Pence) 44.7 37.4 82.0
Underlying cash result diluted EPS (Pence) 44.5 37.1 81.5
EEV-based metrics(1)
EEV net asset value per share (£) 17.43 15.71 16.25
Solvency-based metrics
Management solvency buffer (£'Million) 575.9 539.9 548.4
Solvency ratio (Percentage) 197% 188% 193%
1. For this reporting period we have removed the European Embedded Value (EEV)
information from the financial review. This information can now be found
within the databook on our website sjp.co.uk/half-year-results-2025-databook
(https://sjpwealth.sharepoint.com/sites/finance/fa/annualreport/sjp.co.uk/half-year-results-2025-databook)
as we look to simplify core financial reporting.
The Cash result should not be confused with the IFRS condensed consolidated
statement of cash flows, which is prepared in accordance with IAS 7.
Financial review
This financial review provides analysis of the Group's financial position and
performance.
It is split into the following sections:
Section 1
Funds under management (FUM)
1.1 FUM analysis
1.2 Gestation
Section 2
Performance measurement
2.1 International Financial Reporting Standards (IFRS)
2.2 Cash result
Section 3
Solvency
Section 1 - Funds under management
1.1 FUM analysis
When clients choose to invest with us our stock of FUM grows. Most of our
income is based on the value of FUM, and so growth in FUM is key to future
growth in income and hence shareholder returns. Our FUM also grows through
positive investment performance and is supported by high retention of existing
client investments.
During the six months to 30 June 2025, our advisers attracted £10.5 billion
(six months to 30 June 2024: £8.5 billion, year to 31 December 2024: £18.4
billion) of new client investments and client retention rates remained high
at 95.3% (six months to 30 June 2024: 94.6%, year to 31 December 2024: 94.5%).
As a result, we generated £3.8 billion (six months to 30 June 2024: £1.9
billion, year to 31 December 2024: £4.3 billion) of net inflows, once again
demonstrating the strength of our advice-led business model.
Our investment management approach has continued to work well for clients,
with our portfolios delivering strong returns that were above peer averages.
This, together with net inflows, resulted in FUM increasing by 4% to a record
£198.5 billion (30 June 2024: £181.9 billion, 31 December 2024: £190.2
billion). The following table shows how FUM evolved during 2025 and 2024.
Investment return is presented net of all charges.
Six months ended 30 June 2025
Investment bond Pension UT/ISA and DFM Total Six months ended 30 June 2024 Year Ended 31 December 2024
£'Billion £'Billion £'Billion £'Billion £'Billion £'Billion
Opening FUM 39.18 101.98 49.05 190.21 168.20 168.20
Gross inflows 1.52 6.49 2.48 10.49 8.53 18.41
Net investment return 0.83 2.45 1.18 4.46 11.75 17.68
Regular income withdrawals and maturities (0.16) (1.92) - (2.08) (1.87) (4.28)
Surrenders and part-surrenders (1.03) (1.73) (1.82) (4.58) (4.75) (9.80)
Closing FUM 40.34 107.27 50.89 198.50 181.86 190.21
Net flows 0.33 2.84 0.66 3.83 1.91 4.33
Implied surrender rate as a percentage of average FUM 5.2% 3.3% 7.3% 4.7% 5.4% 5.5%
Included in the preceding table is:
· Rowan Dartington Group FUM of £3.53 billion at 30 June 2025 (30
June 2024: £3.53 billion, 31 December 2024: £3.49 billion).
· SJP AME (Asia & Middle East) FUM of £1.95 billion at 30 June
2025 (30 June 2024: £1.77 billion, 31 December 2024: £1.90 billion).
The following table provides a geographical and investment-type analysis of
FUM at the end of each period.
30 June 2025 30 June 2024 31 December 2024
£'Billion Percentage £'Billion Percentage £'Billion Percentage
of total of total of total
North American equities 73.4 37% 66.8 37% 74.9 39%
Fixed income securities 33.7 17% 29.6 16% 31.6 17%
European equities 28.0 14% 26.2 14% 24.3 13%
Asia and Pacific equities 26.5 13% 22.9 13% 24.0 13%
UK equities 18.2 9% 15.0 8% 16.0 8%
Cash 8.3 4% 6.7 4% 6.9 4%
Alternative investments 5.2 3% 8.6 5% 6.2 3%
Other 4.1 2% 4.5 2% 5.0 2%
Property 1.1 1% 1.6 1% 1.3 1%
Total 198.5 100% 181.9 100% 190.2 100%
1.2 Gestation
As explained in our financial business model in the Chief Financial Officer's
report, due to our current product structure for most investment bond and
pension business, there is a significant amount of FUM in 'gestation'. This
means it is not subject to annual product management charges, our key profit
driver. FUM rolls out of gestation into 'mature' FUM six years after initial
investment, at which point it becomes subject to annual product management
charges for the first time.
Approximately 53% of gross inflows for 2025, after initial charges, moved into
gestation FUM (six months to 30 June 2024: 53%, year to 31 December 2024:
54%).
The following table shows an analysis of FUM, after initial charges, split
between mature FUM that is contributing net income to the Cash result and FUM
in gestation which is not yet contributing. The value of both mature and
gestation FUM is impacted by investment return as well as net inflows.
Position as at Mature FUM contributing to the Cash result Gestation FUM that will contribute to the Cash result in the future Total FUM
£'Billion £'Billion £'Billion
30 June 2025 147.4 51.1 198.5
31 December 2024 140.1 50.1 190.2
We expect our new simple, comparable charging structure to be in place from 26
August 2025. Under the new structure, new business will no longer enter a
period of gestation, and the existing gestation FUM at the point of
implementation will gradually mature. While it exists, gestation FUM will
continue to be a material store of shareholder value that will make a
significant contribution to the Cash result in the future.
The following table gives an indication, for illustrative purposes, of the way
in which gestation FUM could mature and start to contribute to the Cash result
over the next six years and beyond. Once it has all matured, it could
contribute a further £297.2 million per annum to net income from FUM and
hence the Underlying cash result, at no additional cost.
For simplicity the table assumes that FUM values remain unchanged, that there
are no surrenders, and that business is written at the start of the year.
Allowance has been made for the reduction in ongoing charges under our new
charging structure. Actual emergence in the Cash result will reflect the
varying business mix of the relevant cohort and business experience.
Year Cumulative gestation FUM maturity profile Gestation FUM future contribution to the post-tax Cash result
£'Billion £'Million
2025 3.3 22.1
2026 10.1 58.9
2027 18.1 105.4
2028 27.5 159.7
2029 36.5 212.0
2030 45.8 266.3
2031 51.1 297.2
Section 2 - Performance measurement
In line with statutory reporting requirements, we report profits assessed on
an International Financial Reporting Standards (IFRS) basis. The presence of
a significant life insurance company within the Group means that our IFRS
financial statements can be more complicated than a typical advice-led wealth
manager, and so we choose to supplement these financial statements with our
'Cash result' alternative performance measure (APM) to simplify the
presentation. Information on our Cash result metric can be found in section
2.2.
In previous reporting periods we have also included financial information on
the European Embedded Value (EEV) basis, another APM, in this financial
review. This information is now contained within the databook on our website
sjp.co.uk/half-year-results-2025-databook
(https://sjpwealth.sharepoint.com/sites/finance/fa/annualreport/sjp.co.uk/half-year-results-2025-databook)
as we look to simplify our financial reporting.
APMs are not defined by the relevant financial reporting framework (which for
the Group is IFRS), but we use them to provide greater insight to the
financial performance, financial position and cash flows of the Group and the
way it is managed. The glossary of APMs, in which we define each APM used in
our financial review, explain why it is used and, if applicable, explain how
the measure can be reconciled to the IFRS condensed consolidated financial
statements. It also sets out the rationale for any APM we have ceased to
report during the year.
2.1 International Financial Reporting Standards (IFRS)
Our IFRS condensed consolidated statement of comprehensive income contains
policyholder tax balances. This means that our Group IFRS profit before tax
includes amounts charged to clients to meet policyholder expenses, which are
unrelated to the underlying performance of the business. To get to a position
which better reflects the underlying performance of the business, we focus on
IFRS profit before shareholder tax as our pre-tax metric. This APM is IFRS
profit before tax less policyholder tax:
Six months Six months ended Year ended 31 December 2024
ended 30 June 2024
30 June 2025
£'Million £'Million £'Million
IFRS profit before tax 505.4 577.0 1,049.1
Policyholder tax (137.5) (351.9) (513.2)
IFRS profit before shareholder tax 367.9 225.1 535.9
Shareholder tax (88.4) (60.0) (137.5)
IFRS profit after tax 279.5 165.1 398.4
IFRS profit before shareholder tax improved period-on-period, reflecting
underlying business performance and the £84.5 million release from the
Ongoing Service Evidence provision. In addition, policyholder tax asymmetry,
which is a nuance of life insurance tax, impacted IFRS profit before
shareholder tax and IFRS profit after tax in both periods. In the six months
to 30 June 2025 the impact was negative £10.8 million (six months to 30 June
2024: negative impact of £33.4 million, year to 31 December 2024: negative
impact of £38.9 million). External market conditions during the period drive
the policyholder tax asymmetry impacts.
Shareholder tax reflects the tax charge attributable to shareholders and is
closely related to the performance of the business. However, it can vary year
on year due to several factors: further detail is set out in Note 6 Income and
deferred taxes.
2.2 Cash result
The Cash result is used by the Board to assess and monitor the level of cash
profit generated by the business. It is presented net of tax and is based on
IFRS with adjustments made to exclude policyholder balances and certain
non-cash items, such as deferred acquisition costs (DAC), deferred income
(DIR), deferred tax and equity-settled share-based payment costs. The
reconciliation of the Cash result to IFRS can be found in the supplementary
information section and further details, including the full definition of the
Cash result, can be found in the glossary of APMs. Although the Cash result
should not be confused with the IAS 7 condensed consolidated statement of cash
flows, it provides a helpful supplementary view of the way in which cash is
generated and emerges within the Group.
The following table shows an analysis of the Cash result using two different
measures:
· Underlying cash result
This measure represents the regular emergence of cash from the business,
excluding any items of a one-off nature and temporary timing differences.
· Cash result
This measure includes items of a one-off nature and temporary timing
differences.
Consolidated Cash result (presented post-tax)
Six months ended 30 June 2025 Six months ended Year ended 31 December 2024
30 June 2024
In-force New business Total Total Total
Note £'Million £'Million £'Million £'Million £'Million
Net annual management fee 1 562.4 22.2 584.6 539.0 1,108.7
Reduction in fees in gestation period 1 (218.5) - (218.5) (214.2) (425.1)
Net income from FUM 343.9 22.2 366.1 324.8 683.6
Margin arising from new business 2 - 75.4 75.4 53.7 117.4
Controllable expenses 3 (15.2) (139.8) (155.0) (144.9) (291.7)
AME - net investment 4 - (4.7) (4.7) (4.5) (10.2)
DFM - net investment 4 - (3.1) (3.1) (2.3) (2.4)
Regulatory fees and FSCS levy 5 (2.0) (18.0) (20.0) (15.3) (21.5)
Shareholder interest 6 37.2 - 37.2 36.3 66.0
Charge structure implementation costs 7 - (38.1) (38.1) (25.0) (59.5)
Miscellaneous 8 (17.4) - (17.4) (17.6) (34.5)
Underlying cash result 346.5 (106.1) 240.4 205.2 447.2
Ongoing Service Evidence provision release 9 63.4 - 63.4 - -
Other variance 10 (4.6) - (4.6) (3.0) -
Cash result 405.3 (106.1) 299.2 202.2 447.2
The Underlying cash result of £240.4 million for the six months to 30 June
2025 (six months to 30 June 2024: £205.2 million, year to 31 December 2024:
£447.2 million) is 17% higher than the prior period, driven by the increase
in income received from growing levels of FUM, an improvement in gross
inflows, and the management of expenses.
Information about how to reconcile expenses presented in the Cash result to
total IFRS expenses is set out in the databook available on our website
sjp.co.uk/half-year-results-2025-databook
(https://sjpwealth.sharepoint.com/sites/finance/fa/annualreport/sjp.co.uk/half-year-results-2025-databook)
.
Notes to the Cash result
1. Net income from FUM
The net annual management fee is the net margin that the Group retains from
FUM after payment of the associated costs: for example, advice fees paid to
Partners, investment management fees paid to external fund managers and the
policy servicing tariff paid to our third-party administration provider.
As explained in our financial business model in the Chief Financial Officer's
report, our current investment bond and pension business product structure
means that these products do not contribute to the Cash result, after the
margin arising from new business, during the first six years. This is known as
the 'gestation period' and is reflected in the reduction in fees in gestation
period line.
We focus our analysis on net income from FUM, which is the net annual
management fee after the reduction in fees in the gestation period. This
represents income from mature FUM. The average rate can vary over time with
business mix and tax.
For the six months to 30 June 2025, our net income from FUM was £366.1
million (six months to 30 June 2024: £324.8 million, year to 31 December
2024: £683.6 million), an increase of 13%, driven by a 13% increase in
average mature FUM period-on-period. This outcome is within our guided margin
range of 0.54% to 0.56% of average mature FUM, excluding discretionary fund
management (DFM) and AME FUM. At any given time, mature FUM comprises all unit
trust and ISA business, as well as investment bond and pension business
written more than six years ago.
Under our new simple, comparable charging structure, which we expect to be in
place from 26 August 2025, our net income from FUM margin range will reduce to
0.43% to 0.45% on mature FUM. However, the proportion of our FUM which is
mature will increase over time because:
a) ongoing charges will apply to all new business from the day that a new
investment is made. This means that new investment bond and pension business
will be part of mature FUM from day one; and
b) the remaining gestation FUM at the point of implementation will mature over
the following six years.
Please note that net income from AME and DFM FUM is included in the AME -
net investment and DFM - net investment lines respectively in the Cash
result.
2. Margin arising from new business
This is the net income from new business in the period, as initial charges
exceed new business-related expenses. Most of these expenses vary with new
business levels, such as the incremental third-party administration costs of
setting up a new policy on our back-office systems, and payments to Partners
for the initial advice provided to secure clients' investment. As a result,
gross inflows are a key driver of this margin. The 23% increase in gross
inflows period-on-period is the main driver behind the increase in this margin
to £75.4 million for the six months to 30 June 2025 (six months to 30 June
2024: £53.7 million, year to 31 December 2024: £117.4 million).
However, the margin arising from new business also contains some fixed
expenses, and elements which do not vary exactly in line with gross inflows.
Therefore, whilst the margin arising from new business tends to move
directionally with the scale of gross inflows generated during the year, the
relationship between the two is not linear.
Under our new charging structure initial product charges will be removed. As a
result, we anticipate the margin arising from new business to be approximately
nil after it is implemented, as initial advice charges will broadly offset
new-business-related expenses.
3. Controllable expenses
Controllable expenses are primarily people, property and technology expenses.
They do not vary with business volumes or FUM. We look to balance disciplined
expense management with the need to invest in the business to drive future
growth.
Controllable expenses have grown by 7% period-on-period. This is due to
phasing of expenses between the first and second half of the year only; we
anticipate the percentage increase will reduce to approximately 5% for the
full year, in line with prior guidance.
As expected, for the six months to 30 June 2025 there has been no material
impact from our cost and efficiency programme, as the cost savings realised
from the programme have been offset by the costs to achieve those savings, and
reinvestment in the business. We anticipate this will also be the case for the
2025 full year, and 2026.
4. AME and DFM net investments
These lines represent the income from AME and DFM FUM, net of AME and DFM
expenses. We have continued to invest in developing our presence in AME.
Whilst the business is growing, the result is impacted by foreign exchange
losses in the period and change costs as the business continues its transition
to a refocused operating model. Similarly, increased costs driven by an
organisational design programme within our DFM business has led to increased
net investment.
5. Regulatory fees and FSCS levy
The costs of operating in a regulated sector include regulatory fees and the
Financial Services Compensation Scheme (FSCS) levy. On a post-tax basis, these
are as follows:
Six months ended Six months ended Year ended 31 December 2024
30 June 2025 30 June 2024
£'Million £'Million £'Million
FSCS levy 12.6 8.7 9.1
Regulatory fees 7.4 6.6 12.4
Regulatory fees and FSCS levy 20.0 15.3 21.5
Our position as a market-leading provider of advice means we make a
substantial contribution to supporting the FSCS, thereby providing protection
for clients of other businesses in the sector that fail. Our FSCS levy expense
in the six months to 30 June 2025 has increased, following an increase in the
overall levy across the industry. This was expected following two years of the
industry levy being lower than normal, due to prior year surpluses that had
built up within the FSCS scheme.
6. Shareholder interest
This is the income accruing on shareholder investments and cash held for
regulatory and working capital purposes. It is presented net of
funding-related expenses, including interest paid on borrowings and
securitisation costs.
7. Charge structure implementation costs
These are the costs of implementing our new charging structure. Implementation
costs for the six months to 30 June 2025 were £38.1 million (six months to 30
June 2024: £25.0 million, year to 31 December 2024: £59.5 million), bringing
total costs for this multi-year project to £104.8 million. We continue to
anticipate that overall costs for this project will be towards the upper end
of our original guidance range of £105 million to £120 million post-tax.
All remaining implementation costs will be incurred in the second half of
2025.
8. Miscellaneous
This category represents the financial impact of all other items not covered
in any of the other categories. It includes items such as Group contributions
to the St. James's Place Charitable Foundation, movements in the fair value
of renewal income assets and the remediation costs associated with client
complaints.
9. Ongoing Service Evidence provision release
During the period we revised our historic ongoing service evidence review
redress methodology, leading to a £63.4 million release from the provision on
a post-tax basis. More information, with numbers presented on a pre-tax basis
as required by IFRS, can be found in Note 11 within the IFRS condensed
consolidated financial statements.
10. Other variance
The variance recognised at the half-year reflects an allowance for fewer days
of AMC income in the first half compared to the second half. It will reverse
in the second half of the year and will not feature in the full year Cash
result.
Solvency II Net Assets Balance Sheet
To better understand the assets and liabilities that shareholders can benefit
from, the IFRS condensed consolidated statement of financial position is
adjusted to remove policyholder assets and liabilities, and non-cash
'accounting' balances such as DIR, DAC and associated deferred tax. The result
of these adjustments is the Solvency II Net Assets Balance Sheet, which is
shown below.
The reconciliation of the IFRS condensed consolidated statement of financial
position to the Solvency II Net Assets Balance Sheet at 30 June 2025 can be
found in the supplementary information section.
As at As at As at
30 June 2025 30 June 2024 31 December
2024
Note £'Million £'Million £'Million
Assets
Property and equipment 125.6 147.9 134.0
Deferred tax assets 0.1 1.7 0.1
Investment in associates 23.9 10.4 21.9
Reinsurance assets 4.7 9.7 10.7
Other receivables a 2,241.4 2,600.8 1,867.4
Financial investments b 1,785.8 2,086.3 2,202.9
Cash and cash equivalents b 370.1 349.4 352.6
Total assets 4,551.6 5,206.2 4,589.6
Liabilities
Borrowings 299.9 490.6 516.8
Deferred tax liabilities 585.3 567.7 690.1
Insurance contract liabilities 10.7 24.7 14.3
Other provisions 350.4 508.1 460.3
Other payables 1,688.8 2,289.6 1,445.4
Income tax liabilities 74.3 74.4 22.1
Total liabilities 3,009.4 3,955.1 3,149.0
Net assets 1,542.2 1,251.1 1,440.6
Notes to the Solvency II Net Assets Balance Sheet
a. Other receivables
A detailed breakdown of other receivables can be found in Note 9 Other
receivables within the IFRS condensed consolidated financial statements.
Within other receivables there are two items which merit further analysis:
Operational readiness prepayment asset
The operational readiness prepayment asset represents the investment made into
our back-office infrastructure project, as we recognised Bluedoor development
costs as a prepayment. The asset stood at £242.4 million at 30 June 2025 (30
June 2024: £272.3 million, 31 December 2024: £256.3 million). During the
period, we extended our contract with our back-office infrastructure provider.
The operational readiness prepayment amortises through the condensed
consolidated statement of comprehensive income over the remaining contract
period, which at 30 June 2025 was c.9.5 years (30 June 2024: c.9.5 years, 31
December 2024: c.9 years).
Business loans to Partners
We facilitate business loans to Partners to support growing Partner
businesses. Such loans are principally used to enable Partners to take over
the businesses of retiring or downsizing Partners, and this process has
multi-stakeholder benefits:
· It supports the delivery of great outcomes for clients as they
receive continuity of service within the SJP ecosystem.
· It makes SJP a great place for motivated, entrepreneurial
advisers to build high-quality businesses over the long term.
· It helps to support the next generation of SJP advisers.
· It retains advisers and clients, which leads to retention of our
FUM, which in turn supports our financial results and thus shareholders.
In addition to recognising a strong business case for facilitating such
lending, we recognise too the fundamental strength and credit quality of
business loans to Partners. We have low impairment experience due to several
factors that help to mitigate the inherent credit risk in lending. These
include taking a cautious approach to Group credit decisions, with lending
secured against reasonable business valuations. Demonstrating this,
loan-to-value (LTV) information is set out in the following table.
30 June 2025 30 June 2024 31 December 2024
Weighted average LTV across the total Partner lending book 38% 39% 39%
Proportion of the book where LTV is over 75% 4% 3% 5%
Net exposure to loans where LTV is over 100% (£'Million) 8.3 7.6 7.2
If FUM were to decrease by 10%, the net exposure to loans where LTV is over
100% at 30 June 2025 would increase to £9.2 million (30 June 2024: increase
to £8.1 million, 31 December 2024: increase to £8.3 million).
Our credit experience also benefits from the repayment structure of business
loans to Partners. The Group collects advice charges from clients. Prior to
making the associated payment to Partners, we deduct loan capital and interest
payments from the amount due.
During the period, we have continued to facilitate business loans to Partners.
Further information is provided in Note 9 Other receivables and Note 12
Borrowings and financial commitments.
30 June 2025 30 June 2024 31 December 2024
£'Million £'Million £'Million
Total business loans to Partners 603.3 507.0 557.3
Split by funding type:
Business loans to Partners directly funded by the Group 401.4 384.9 386.6
Securitised business loans to Partners 201.9 122.1 170.7
b. Liquidity
Cash generated by the business is held in highly rated government securities,
AAA-rated money market funds and bank accounts. Although these are all highly
liquid, only the latter is classified as cash and cash equivalents on the
Solvency II Net Assets Balance Sheet. The total liquid assets held are as
follows.
30 June 2025 30 June 2024 31 December 2024
£'Million £'Million £'Million
Fixed interest securities 8.8 8.4 8.6
Investment in collective investment schemes (AAA-rated money market funds) 1,777.0 2,077.9 2,194.3
Financial investments 1,785.8 2,086.3 2,202.9
Cash and cash equivalents 370.1 349.4 352.6
Total liquid assets 2,155.9 2,435.7 2,555.5
The Group's primary source of net cash generation is product charges on FUM.
Cash is used to invest in the business and to support returns to shareholders.
Our shareholder returns guidance is set such that appropriate cash is retained
in the business to support the investment needed to meet our future growth
aspirations.
Section 3 - Solvency
St. James's Place has a business model and risk appetite that result in
underlying assets being held that fully match our obligations to clients. Our
clients can access their investments 'on demand' and because the encashment
value is matched, movements in equity markets, currency markets, interest
rates, mortality, morbidity and longevity have very little impact on our
ability to meet liabilities. We also have a prudent approach to investing
shareholder funds and surplus assets in cash, AAA-rated money market funds and
highly rated government securities. The overall effect of the business model
and risk appetite is a resilient solvency position capable of enabling
liabilities to be met even during adverse market conditions.
Our Life businesses are subject to the Solvency II capital regime
introduced in 2016. Given the relative simplicity of our business compared to
many other organisations that fall within the scope of Solvency II, we have
continued to manage the solvency of the business by holding assets to match
client unit-linked liabilities plus a management solvency buffer (MSB). This
has ensured that not only can we meet client liabilities at all times (beyond
the Solvency II requirement of a '1-in-200-years' event), but we also have a
prudent level of protection against other risks to the business. At the same
time, we have ensured that the resulting capital held meets with the
requirements of the Solvency II regime, to which we are ultimately
accountable.
For the period ended 30 June 2025 we reviewed the level of our MSB for the
Life businesses and chose to maintain it at £355.0 million (30 June 2024:
£355.0 million, 31 December 2024: £355.0 million). The Group's overall
Solvency II net assets position, MSB, and management solvency ratios are as
follows:
30 June 2025
Life Other regulated Other Total 30 June 31 December
2024 2024
£'Million £'Million £'Million £'Million £'Million £'Million
Solvency II net assets 462.8 480.8 598.6 1,542.2 1,251.1 1,440.6
MSB 355.0 220.9 - 575.9 539.9 548.4
Excess Solvency II net assets over MSB 107.8 259.9 598.6 966.3 711.2 892.2
Management solvency ratio 130% 218% - - - -
Solvency II Balance Sheet
Analysis of the Solvency II position split by regulated and non-regulated
entities and Solvency II sensitivities, previously included within this
section, can now be found within the databook on our website
sjp.co.uk/half-year-results-2025-databook
(https://sjpwealth.sharepoint.com/sites/finance/fa/annualreport/sjp.co.uk/half-year-results-2025-databook)
.
Risk and control management
Our approach to risk management provides assurance of our commitment to
financial and operational resilience and to delivering good outcomes for
clients.
The Risk and control management section on pages 30 to 38 of our Group Annual
Report and Accounts 2024 (AR&A 2024) provides a review of the principal
risks facing the business, and our approach to managing these risks. The
section below highlights the key developments in the risk environment since
the AR&A 2024 was signed in February 2025. There have been no material
changes in the principal risks facing the business.
Risk environment
There have been heightened tensions across the globe with increased risk of a
broader global conflict. Geo-economic conflict and trade wars have developed
quickly and represent a more prominent risk to businesses and investment
markets. From a client perspective, financial advice is even more important in
a dynamic macroeconomic environment as it can help clients develop their plans
to achieve their financial goals.
The cyber threat landscape continues to evolve, with AI-enabled cyber attacks
becoming more sophisticated. While the risk of cyber attacks cannot be
eliminated, we continue to invest in a robust cyber security and control
framework to protect corporate systems and client data.
We expect our simple, comparable charging structure will be in place from 26
August 2025. Leading up to this, we have communicated the changes to clients
and will be engaging with them to ensure they understand how their charges
will change. This change enhances our proposition for clients and reflects our
commitment to deliver good client outcomes. We believe that these efforts will
yield significant long-term benefits for both clients and the business. There
are significant operational risks associated with any large technology
transformation programme. Whilst aiming to deliver the changes at pace,
managing the relevant operational risks to be confident of delivering the
changes safely, has been paramount to all involved.
Most of the work to implement our new organisational redesign has now been
completed, with people risk continuing to be heightened. We are sensitive to
the risks and are focused on managing the impacts to people, whilst
maintaining operational and financial resilience throughout the implementation
of the new model and our strategy.
In February 2025, the FCA issued findings from its market study into the
delivery of ongoing financial advice services. This provided new industry
guidance on the expectations regarding acceptable ongoing service standards.
Following this, we revised our redress methodology for our review into
historic client servicing to better align it with both the new industry
guidance and our experience from the project to date. This led to a release in
the Ongoing Service Evidence provision: for more information, see the Chief
Financial Officer's report.
Condensed consolidated half-year financial statements prepared under
International Financial Reporting Standards (IFRS) as adopted by the United
Kingdom (UK)
Condensed consolidated statement of comprehensive income
Note Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December
2024
£'Million £'Million £'Million
Fee and commission income 4 1,562.0 1,604.4 3,163.9
Expenses (1,115.2) (1,097.5) (2,236.7)
Investment return 5 5,316.3 14,162.4 22,785.3
Movement in investment contract benefits 5 (5,275.3) (14,102.2) (22,688.5)
Insurance revenue 10.2 10.6 25.2
Insurance service expenses (6.5) (16.3) (21.8)
Net reinsurance expense (1.5) 2.7 (3.1)
Insurance service result 2.2 (3.0) 0.3
Net insurance finance (expense)/income (0.1) 3.2 2.7
Finance income 31.0 25.8 58.5
Finance costs (15.5) (16.1) (36.4)
Profit before tax 505.4 577.0 1,049.1
Tax attributable to policyholders' returns 6 (137.5) (351.9) (513.2)
Profit before tax attributable to shareholders' returns 367.9 225.1 535.9
Total tax charge 6 (225.9) (411.9) (650.7)
Less: tax attributable to policyholders' returns 6 137.5 351.9 513.2
Tax attributable to shareholders' returns 6 (88.4) (60.0) (137.5)
Profit and total comprehensive income for the year 279.5 165.1 398.4
Profit attributable to non-controlling interests 0.2 - -
Profit attributable to equity shareholders 279.3 165.1 398.4
Profit and total comprehensive income for the year 279.5 165.1 398.4
Note Pence Pence Pence
Basic earnings per share 15 52.0 30.1 73.0
Diluted earnings per share 15 51.6 29.9 72.6
The results relate to continuing operations.
The Notes and information form part of these condensed consolidated financial
statements.
Condensed consolidated statement of changes in equity
Note Equity attributable to owners of the Parent Company
Non-controlling interests Total
equity
Share capital Share premium Shares in trust reserve Total
Capital redemption reserve
Misc. reserves Retained earnings
£'Million £'Million £'Million £'Million £'Million £'Million £'Million £'Million £'Million
At 1 January 2024 82.3 233.9 - (0.7) 2.5 665.4 983.4 0.1 983.5
Profit and total comprehensive income for the period - - - - 165.1 165.1 - 165.1
-
Dividends 15 - - - - - (43.8) (43.8) (0.1) (43.9)
Consideration paid for own shares 15 - - (3.6) - - (3.6) - (3.6)
-
Retained earnings credit in respect of share option charges - - - - - 2.1 2.1 - 2.1
At 30 June 2024 82.3 233.9 - (4.3) 2.5 788.8 1,103.2 - 1,103.2
At 1 January 2025 81.6 233.9 0.7 (10.2) 2.5 965.3 1,273.8 (0.1) 1,273.7
Profit and total comprehensive income for the period - - - - - 279.3 279.3 0.2 279.5
Dividends 15 - - - - - (64.4) (64.4) (0.2) (64.6)
Exercise of options - 0.1 - - - - 0.1 - 0.1
Shares repurchased in buy-back programmes 15 (1.4) - 1.4 - - (93.2) (93.2) - (93.2)
Consideration paid for own shares - - - (34.5) - - (34.5) - (34.5)
Issue of treasury shares in respect of share schemes - - - 3.0 - (3.0) - - -
Retained earnings credit in respect of share option charges - - - - - 5.2 5.2 - 5.2
At 30 June 2025 80.2 234.0 2.1 (41.7) 2.5 1,089.2 1,366.3 (0.1) 1,366.2
The number of shares held in the shares in trust reserve is given in Note 15
Share capital, earnings per share and shareholder returns.
Miscellaneous reserves represent other non-distributable reserves.
Condensed consolidated statement of financial position
Note As at As at As at
30 June 30 June 31 December
2025 2024 2024
£'Million £'Million £'Million
Assets
Goodwill 7 23.3 33.6 23.3
Deferred acquisition costs 7 285.9 295.0 286.2
Intangible assets 7 11.9 27.6 15.5
Property and equipment, including leased assets 125.6 147.9 134.0
Investment property 8 669.3 1,039.5 892.3
Deferred tax assets 6 7.4 13.2 2.7
Investment in associates 23.9 10.4 21.9
Reinsurance assets 9.1 15.9 14.9
Other receivables 9 3,356.5 4,023.8 2,687.4
Financial investments 8 189,725.5 171,966.9 182,320.2
Derivative financial assets 8 3,154.3 3,828.0 2,812.8
Cash and cash equivalents 6,403.5 6,504.8 5,663.9
Total assets 203,796.2 187,906.6 194,875.1
Liabilities
Borrowings 12 299.9 490.6 516.8
Deferred tax liabilities 6 576.9 565.2 679.4
Insurance contract liabilities 505.7 517.4 518.6
Deferred income 7 475.4 477.9 469.5
Other provisions 11 350.4 508.1 460.3
Other payables 10 3,267.5 4,080.8 2,144.3
Investment contract benefits 8 147,227.0 133,823.5 141,038.8
Derivative financial liabilities 8 2,622.9 2,807.5 3,052.1
Net asset value attributable to unit holders 8 47,030.0 43,458.0 44,699.5
Income tax liabilities 74.3 74.4 22.1
Total liabilities 202,430.0 186,803.4 193,601.4
Net assets 1,366.2 1,103.2 1,273.7
Shareholders' equity
Share capital 15 80.2 82.3 81.6
Share premium 234.0 233.9 233.9
Capital redemption reserve 2.1 - 0.7
Shares in trust reserve (41.7) (4.3) (10.2)
Miscellaneous reserves 2.5 2.5 2.5
Retained earnings 1,089.2 788.8 965.3
Equity attributable to owners of the Parent Company 1,366.3 1,103.2 1,273.8
Non-controlling interests (0.1) - (0.1)
Total equity 1,366.2 1,103.2 1,273.7
Pence Pence Pence
Net assets per share 255.6 201.1 234.1
Condensed consolidated statement of cash flows
Note Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December
2024
£'Million £'Million £'Million
Cash flows from operating activities
Cash generated from/(used in) operations 14 1,352.2 187.5 (528.5)
Interest received 111.3 113.3 236.6
Interest paid (15.5) (16.2) (36.4)
Income taxes paid 6 (280.8) (162.1) (326.1)
Contingent consideration paid (4.2) - (1.3)
Net cash inflow/(outflow) from operating activities 1,163.0 122.5 (655.7)
Cash flows from investing activities
Payments for property and equipment (0.4) (3.5) (3.6)
Payment of software development costs - (3.0) (5.1)
Payments for associates (1.7) - (8.3)
Net cash outflow from investing activities (2.1) (6.5) (17.0)
Cash flows from financing activities
Proceeds from the issue of share capital and exercise of options 0.1 - -
Shares repurchased in the share buy-back programme 15 (93.2) - (33.1)
Consideration paid for own shares (34.5) (3.6) (9.5)
Proceeds from borrowings 47.5 412.7 473.8
Repayment of borrowings (264.7) (173.6) (208.1)
Principal elements of lease payments (8.4) (6.7) (14.0)
Dividends paid to Company's shareholders 15 (64.4) (43.8) (76.6)
Dividends paid to non-controlling interests in subsidiaries (0.2) (0.1) (0.2)
Net cash (outflow)/inflow from financing activities (417.8) 184.9 132.3
Net increase/(decrease) in cash and cash equivalents 743.1 300.9 (540.4)
Cash and cash equivalents at 1 January 5,663.9 6,204.3 6,204.3
Effects of exchange rate changes on cash and cash equivalents (3.5) (0.4) -
Cash and cash equivalents at end of period 6,403.5 6,504.8 5,663.9
Notes to the condensed consolidated financial statements under International
Financial Reporting Standards
1. Basis of preparation
This condensed set of consolidated half-year financial statements for the six
months ended 30 June 2025, which comprise the half-year financial statements
of St. James's Place plc (the Company) and its subsidiaries (together referred
to as the 'Group'), has been prepared in accordance with the Disclosure
Guidance and Transparency Rules sourcebook of the Financial Conduct Authority
and with IAS 34 'Interim Financial Reporting', an International Financial
Reporting Standard (IFRS) as adopted by the United Kingdom (UK). The condensed
consolidated half-year financial statements should be read in conjunction with
the annual financial statements for the year ended 31 December 2024, which
have been prepared in accordance with UK-adopted International Accounting
Standards and with the requirements of the Companies Act 2006.
Going concern
The Group's business activities, together with the factors likely to affect
its future development, performance and position, are set out in the Chief
Executive's report and the Chief Financial Officer's report. The financial
performance and financial position of the Group are described in the financial
review.
As shown in the financial review, the Group's capital position remains strong
and well in excess of regulatory requirements. In addition, it has continued
to operate within its external banking covenants and the Insurer Financial
Strength Rating for St James's Place UK plc remains at A+ and the Long-Term
Issuer Default Rating for St. James's Place plc at A. Further, the long-term
nature of the business results in considerable positive cash flows arising
from existing business.
The Board has considered the challenging macroeconomic and geopolitical
conditions which prevailed during the period, noting that the business
continued to be successful in this environment. Notwithstanding market
challenges, the Group attracted gross inflows of £10.5 billion and net
inflows of £3.8 billion. This, along with the performance of our key
outsource providers monitored through our ongoing oversight, supports its view
that the business will continue to remain operationally resilient.
Forecasts have been considered and there are no material adverse changes to
the approach and conclusions stated in the Group Annual Report and Financial
Statements for 2024, a copy of which is available on the Group's website,
www.sjp.co.uk. (https://www.sjp.co.uk)
As a result of its review, the Board believes that the Group will continue to
operate, with neither the intention nor the necessity of liquidation, ceasing
trading or seeking protection from creditors pursuant to laws or regulations,
for a period of at least 12 months from the date of approval of the Group
Interim Financial Statements, and that it is appropriate to prepare them on a
going concern basis.
2. Significant accounting policies
(a) Statement of compliance
These condensed consolidated half-year financial statements were prepared and
approved by the Directors in accordance with International Financial Reporting
Standards as adopted by the UK.
There were no new or amended IFRS standards, effective for periods beginning 1
January 2025.
In preparing these condensed consolidated half-year financial statements the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
applied to the consolidated financial statements for the year ended 31
December 2024, except for:
Determining the value of the Ongoing Service Evidence provision
The Group has committed to review the sub-population of clients that has been
charged for ongoing advice services since the start of 2018 but where the
evidence of delivery falls below the acceptable standard.
In accordance with IAS 37, the Group has quantified the Ongoing Service
Evidence provision as the best estimate of the amount necessary to settle the
present obligation, taking into account the associated risks and
uncertainties.
The provision is based on an extrapolation of the experience of a
representative cohort of clients. The period for the review has been
determined by the Group to commence from 2018 following an assessment of the
regulatory regime in force during this period and the requirement to retain
evidence of delivery for this period of time.
During the period, following the FCA's new industry guidance around ongoing
financial advice services, issued in February 2025, the Group revised the
redress methodology. The Group have updated the assumptions to reflect
experience from the project to date, which includes a larger representative
cohort of clients'.
Key estimates and assumptions in assessing the estimated value are:
· extrapolation from a representative cohort - that the assessment,
of a representative cohort of client records, can be extrapolated to the wider
review population
· Opt-In response rate - the response rate by clients to an
invitation to join the review, taking into account internal and industry
experience
· administration costs - that in-house historic experience and
wider market experience of similar exercises can be used to estimate the cost
to fulfil the exercise.
Further details of the provision, including sensitivity analysis, are set out
in Note 11.
(b) New and amended accounting standards not yet effective
As at 30 June 2025, the following new and amended standards, which are
relevant to the Group but have not been applied in the financial statements,
were in issue but are not yet effective. IFRS 18 Presentation and Disclosure
in Financial Statements is yet to be endorsed by the UK Endorsement Board.
· Amendments to the classification and measurement of Financial
Instruments - Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: Disclosures.
· IFRS 18 Presentation and Disclosure in Financial Statements.
The Group is currently assessing the impact that the adoption of the above
standards and amendments will have on the Group's results reported within the
financial statements. The only one expected to have a significant impact on
the Group's financial statements is IFRS 18 Presentation and Disclosure in
Financial Statements. Further information on this standard is given below.
IFRS 18 Presentation and Disclosure in Financial Statements
The IASB issued IFRS 18 Presentation and Disclosure in Financial Statements on
9 April 2024 which will replace IAS 1. IFRS 18 introduces three sets of new
requirements to improve companies' reporting of financial performance and
gives investors better basis for analysing and comparing companies:
· improved comparability in the statement of comprehensive income.
· enhanced transparency of management defined performance measures.
· more useful grouping of information in the financial statements.
Management are currently assessing the impacts of adopting the new standard
however it is only expected to have an impact on the presentation and
disclosure of the financial statements and is not expected to have an impact
on recognition and measurement. The effective date of the standard is 1
January 2027.
3. Segment reporting
IFRS 8 Operating Segments requires operating segments to be identified on the
basis of internal reports about components of the Group that are regularly
reviewed by the Board, in order to allocate resources to each segment and
assess its performance.
The Group's only reportable segment under IFRS 8 is a 'wealth management'
business - providing support to our clients through our network of advisers
providing valuable face-to-face financial advice, and financial solutions
including (but not limited to) wealth management products manufactured in the
Group, such as insurance bonds, pensions, unit trust and ISA investments, and
a DFM service.
Separate geographical segmental information is not presented since the Group
does not segment its business geographically. Most of its customers are based
in the United Kingdom, as is management of the assets. In particular,
the operation based in AME is not yet sufficiently material for separate
consideration.
Segment revenue
Revenue received from fee and commission income is set out in Note 4, which
details the different types of revenue received from our wealth management
business.
Segment profit
Two separate measures of profit are monitored by the Board. These are the
post-tax Underlying cash result and the pre-tax European Embedded Value (EEV)
profit. Further details can be found within the glossary of alternative
performance measures section.
Underlying cash result
The measure of cash profit monitored by the Board is the post-tax Underlying
cash result. For further information please refer to the glossary of
alternative performance measures section.
The Cash result should not be confused with the IFRS condensed consolidated
statement of cash flows, which is prepared in accordance with IAS 7.
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'Million £'Million £'Million
Underlying cash result after tax 240.4 205.2 447.2
Ongoing Service Evidence provision 63.4 - -
Movement in DAC/DIR/PVIF (6.9) 2.6 (0.1)
Impact of policyholder tax asymmetry (see Note 4) (10.8) (33.4) (38.9)
Equity-settled share-based payments (5.2) (2.1) (11.2)
Impact of deferred tax 3.0 (9.2) (9.0)
Other (4.4) 2.0 10.4
IFRS profit after tax 279.5 165.1 398.4
Shareholder tax 88.4 60.0 137.5
Profit before tax attributable to shareholders' returns 367.9 225.1 535.9
Tax attributable to policyholder returns 137.5 351.9 513.2
IFRS profit before tax 505.4 577.0 1,049.1
EEV operating profit
EEV operating profit is monitored by the Board. Further details on the EEV
operating profit can be found within the glossary of alternative performance
measures section.
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'Million £'Million £'Million
EEV operating profit before tax after exceptional items 876.3 793.1 1,045.0
Investment return variance (23.2) 437.9 533.7
Economic assumption changes 27.9 (2.0) 23.5
EEV profit before tax 881.0 1,229.0 1,602.2
Adjustments to IFRS basis:
Deduct: amortisation of purchased value of in-force business (1.6) (1.6) (3.2)
Movement of balance sheet life value of in-force business (net of tax) (81.1) (153.4) (354.5)
Movement of balance sheet unit trust and DFM value of in-force business (net (125.1) (360.5) (345.4)
of tax)
Movement of balance sheet other value of in-force business (net of tax) (142.8) (326.5) (291.4)
Tax on movement in value of in-force business (162.5) (161.9) (71.8)
Profit before tax attributable to shareholders' returns 367.9 225.1 535.9
Tax attributable to policyholder returns 137.5 351.9 513.2
IFRS profit before tax 505.4 577.0 1,049.1
The movement in life, unit trust and DFM, and other value of in-force business
is the difference between the opening and closing discounted value of the
profits that will emerge from the in-force book over time, after adjusting for
DAC and DIR impacts which are already included under IFRS.
Segment assets
Funds under management (FUM)
FUM, as reported in section 1 of the financial review, is the measure of
segment assets which is monitored on a monthly basis by the Board.
30 June 2025 30 June 2024 31 December 2024
£'Million £'Million £'Million
Investment 40,340.0 37,900.0 39,180.0
Pension 107,270.0 96,260.0 101,980.0
UT/ISA and DFM 50,890.0 47,700.0 49,050.0
Total FUM 198,500.0 181,860.0 190,210.0
Exclude client and third-party holdings in non-consolidated unit trusts and (4,094.1) (4,403.1) (4,183.3)
DFM
Other 4,502.9 4,866.5 3,923.7
Gross assets held to cover unit liabilities 198,908.8 182,323.4 189,950.4
IFRS intangible assets 335.8 377.0 335.1
Shareholder gross assets 4,551.6 5,206.2 4,589.6
Total assets 203,796.2 187,906.6 194,875.1
Other represents liabilities included within the underlying unit trusts. The
unit trust liabilities form a reconciling item between total FUM, which is
reported net of these liabilities, and total assets, which exclude these
liabilities.
More detail on IFRS intangible assets and shareholder gross assets is provided
in the supplementary information section.
4. Fee and commission income
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'Million £'Million £'Million
Advice charges (post RDR) 616.2 528.1 1,089.2
Third-party fee and commission income 66.8 62.7 131.3
Wealth management fees 641.8 577.6 1,234.1
Investment management fees 34.4 37.1 74.5
Fund tax deductions 137.5 351.9 513.2
Policyholder tax asymmetry (10.8) (33.4) (38.9)
Discretionary fund management fees 11.0 11.8 23.4
Fee and commission income before DIR amortisation 1,496.9 1,535.8 3,026.8
Amortisation of DIR 65.1 68.6 137.1
Total fee and commission income 1,562.0 1,604.4 3,163.9
Advice charges are received from clients for the provision of initial and
ongoing advice in relation to a post-Retail Distribution Review (RDR)
investment into a St. James's Place or third-party product.
Third-party fee and commission income is received from the product provider
where an investment has been made into a third-party product.
Wealth management fees represent charges levied on manufactured business.
Investment management fees are received from clients for the provision of all
aspects of investment management. Broadly, investment management fees are
matched by investment management expenses.
Fund tax deductions represent amounts credited to, or deducted from, the life
insurance business to match policyholder tax credits or charges. Market
conditions will impact the level of fund tax deductions. This may lead to
significant year on year movements when markets are volatile.
Life insurance tax incorporates a policyholder tax element, and the financial
statements of a life insurance group need to reflect the liability to HMRC,
with the corresponding deductions incorporated into policy charges ('Fund tax
deductions' in the table above). The tax liability to HMRC is assessed using
IAS 12 Income Taxes, which does not allow discounting, whereas the policy
charges are designed to ensure fair outcomes between clients and so reflect a
wide range of possible outcomes. This gives rise to different assessments of
the current value of future cash flows and hence an asymmetry in the IFRS
condensed consolidated statement of financial position between the deferred
tax position and the offsetting client balance. The net tax asymmetry balance
reflects a temporary position, and in the absence of market volatility we
expect it will unwind as future cash flows become less uncertain and are
ultimately realised.
External market conditions drive the movement in the policyholder tax
asymmetry balances. Net market gains in the six months to 30 June 2025 have
resulted in a negative policyholder tax asymmetry.
Discretionary fund management fees are received from clients for the provision
of DFM services.
Where an investment has been made in a SJP product, the initial product charge
is deferred and recognised as a deferred income liability. This liability is
extinguished, and income recognised, over the expected life of the investment.
The income is the amortisation of DIR in the table above.
5. Investment return and movement in investment contract benefits
The majority of the business written by the Group is unit-linked investment
business, and so investment contract benefits are measured by reference to the
underlying net asset value of the Group's unitised investment funds. As a
result, investment return on the unitised investment funds and the movement in
investment contract benefits are linked.
Investment return
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'Million £'Million £'Million
Attributable to unit-linked investment contract benefits:
Rental income 19.8 35.4 60.8
Gain/(loss) on revaluation of investment properties 12.5 (22.8) (3.3)
Net investment return on financial instruments classified at fair value 4,084.5 9,728.7 15,594.6
through profit and loss
4,116.8 9,741.3 15,652.1
Income attributable to third-party holdings in unit trusts 1,158.5 4,360.9 7,036.4
Investment return on net assets held to cover unit liabilities 5,275.3 14,102.2 22,688.5
Net investment return on financial instruments classified at fair value 40.2 59.5 95.6
through profit and loss
Net investment return on financial instruments held at amortised cost 0.8 0.7 1.2
Investment return on shareholder assets 41.0 60.2 96.8
Total investment return 5,316.3 14,162.4 22,785.3
Included in the net investment return on financial instruments classified as
fair value through profit and loss, within investment return on net assets
held to cover unit liabilities, is dividend income of £1,118.5 million (six
months ended 30 June 2024: £960.8 million, year ended 31 December 2024:
£1,576.7 million).
6. Income and deferred taxes
Tax for the year
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'Million £'Million £'Million
Current tax
UK corporation tax
- Current year charge 324.0 241.5 330.7
- Adjustment in respect of prior year 0.7 (0.1) 1.9
Overseas taxes
- Current year charge 8.4 12.3 17.0
- Adjustment in respect of prior year - (0.6) (0.3)
333.1 253.1 349.3
Deferred tax
Unrealised capital gains in unit-linked funds (103.3) 151.9 261.6
Unrelieved expenses
- Utilisation in the year 3.5 4.5 8.9
Capital losses
DAC, DIR and PVIF (1.0) (2.4) (5.3)
Share-based payments (5.1) 0.6 (5.3)
Renewal income assets (1.5) 1.8 (3.9)
Fixed asset timing differences - 0.3 0.5
UK trading losses - - 40.8
Other items 0.9 1.7 3.8
Transitional adjustment (0.4) - 3.4
Adjustment in respect of prior year (0.3) 0.4 (3.1)
(107.2) 158.8 301.4
Total tax charge for the year 225.9 411.9 650.7
Attributable to:
- Policyholders 137.5 351.9 513.2
- Shareholders 88.4 60.0 137.5
225.9 411.9 650.7
The adjustment in respect of prior year of £0.7 million charge in current tax
above represents a £nil charge in respect of policyholder tax (30 June 2024:
£nil, 31 December 2024: £2.4 million charge) and a £0.7 million charge in
respect of shareholder tax (30 June 2024: £0.7 million credit, 31 December
2024: £0.8 million credit). The adjustment in respect of prior year of £0.3
million credit in deferred tax above represents £nil credit in respect of
policyholder tax (30 June 2024: £nil, 31 December 2024: £0.1 million credit)
and a credit of £0.3 million in respect of shareholder tax (30 June 2024:
£0.4 million charge, 31 December 2024: £3.0 million credit).
In arriving at the profit before tax attributable to shareholders' return, it
is necessary to estimate the analysis of the total tax charge/(credit) between
that payable in respect of policyholders and that payable by shareholders.
Shareholder tax is estimated by making an assessment of the effective rate of
tax that is applicable to the shareholders on the profits attributable to
shareholders. This is calculated by applying the appropriate effective
corporate tax rates to the shareholder profits. The remainder of the tax
charge/(credit) represents tax on policyholders' investment returns. This
calculation method is consistent with the legislation relating to the
calculation of tax on shareholder profits.
Reconciliation of tax charge to expected tax
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December
2024
£'Million £'Million £'Million
Profit before tax 505.4 577.0 1,049.1
Tax attributable to policyholders' returns (137.5) (351.9) (513.2)
Profit before tax attributable to shareholders' returns 367.9 225.1 535.9
Shareholder tax charge at corporate tax rate of 25.0% (2024: 25.0%) 92.0 25.0% 56.3 25.0% 134.0 25.0%
Adjustments:
Lower rates of corporation tax in overseas subsidiaries (0.5) (0.2%) (0.9) (0.4%) (1.2) (0.2%)
Expected shareholder tax 91.5 24.8% 55.4 24.6% 132.8 24.8%
Effects of:
Non-taxable income (0.3) (0.2) (0.4)
Adjustment in respect of prior year
- Current tax 0.7 (0.7) (0.8)
- Deferred tax (0.3) 0.4 (3.1)
Differences in accounting and tax bases in relation to employee share schemes (6.1) - (3.1)
Disallowable expenses 0.5 3.8 6.1
Change in accounting base - Hong Kong - - 4.2
Provision for future liabilities - 0.2 (0.6)
Tax losses not recognised 1.2 0.9 2.4
Other 1.2 0.2 -
(3.1) (0.8%) 4.6 2.1% 4.7 0.9%
Shareholder tax charge 88.4 24.0% 60.0 26.7% 137.5 25.7%
Policyholder tax charge 137.5 351.9 513.2
Total tax charge for the year 225.9 411.9 650.7
Tax calculated on profit before tax at 25.0% (2024: 25.0%) would amount to a
charge of £126.4 million (six months to 30 June 2024: charge of £144.3
million, year to 31 December 2024: charge of £262.3 million). The difference
of £99.5 million (six months to 30 June 2024: £267.6 million, year to 31
December 2024: £388.4 million) between this number and the total tax charge
of £225.9 million (six months to 30 June 2024: £411.9 million charge, year
to 31 December 2024: £650.7 million charge) is made up of the reconciling
items above which total a credit of £3.6 million (six months to 30 June 2024:
£3.7 million charge, year to 31 December 2024: £3.5 million charge) and the
effect of the apportionment methodology on tax applicable to policyholder
returns of £103.1 million (six months to 30 June 2024: £263.9 million, year
to 31 December 2024: £384.9 million).
Tax paid in the year
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'Million £'Million £'Million
Current tax charge for the year 333.1 253.1 349.3
Payments to be made in future years in respect of current year (76.4) (91.0) (22.9)
Payments made/(refunds received) in current year in respect of prior years 24.3 (0.2) 0.6
Other (0.2) 0.2 (0.9)
Tax paid 280.8 162.1 326.1
Tax paid can be analysed as:
- Taxes paid in UK 173.9 95.0 252.4
- Taxes (received)/paid in overseas jurisdictions (0.6) 0.7 5.9
- Withholding taxes suffered on investment income received 107.5 66.4 67.8
Total 280.8 162.1 326.1
Deferred tax balances
Deferred tax assets
As at (Charge)/credit to the statement of comprehensive income Impact of acquisitions Reanalysis from As at 30 June 2025 Expected utilisation period
1 January deferred tax liabilities
2025
Utilised and created in year Total As at 30 June 2025
(charge)/
credit
£'Million £'Million £'Million £'Million £'Million £'Million
Deferred acquisition costs (DAC) 0.9 - - - (17.3) (16.4) 14 years
Deferred income (DIR) 1.7 (1.4) (1.4) - 29.2 29.5 14 years
Fixed asset temporary differences - 0.1 0.1 - 0.3 0.4 6 years
Renewal income assets - 1.5 1.5 (0.2) (17.3) (16.0) 20 years
Share-based payments - 5.1 5.1 - 10.1 15.2 3 years
Other temporary differences 0.1 (0.4) (0.4) - (5.0) (5.3) -
Total 2.7 4.9 4.9 (0.2) - 7.4
As at Credit/(charge) to the statement of comprehensive income Reanalysis to deferred tax liabilities Transfers As at Expected utilisation period
1 January 30 June
2024 2024
Utilised and created in year Total credit/ As at
(charge) 30 June
2024
£'Million £'Million £'Million £'Million £'Million £'Million
Deferred acquisition costs (DAC) (18.6) 0.5 0.5 (0.5) - (18.6) 14 years
Deferred income (DIR) 35.1 (1.8) (1.8) - - 33.3 14 years
Fixed asset temporary differences 1.3 (0.7) (0.7) - - 0.6 6 years
Renewal income assets (19.9) (1.8) (1.8) - - (21.7) 20 years
Share-based payments 4.8 (0.6) (0.6) 0.1 - 4.3 3 years
UK trading losses 36.1 - - - (18.0) 18.1 0.5 years
Other temporary differences (2.3) (1.6) (1.6) 1.1 - (2.8) -
Total 36.5 (6.0) (6.0) 0.7 (18.0) 13.2
Deferred tax liabilities
Charge/(credit) to the statement of comprehensive income Expected utilisation period
As at Utilised and created in year Total charge/ (credit) Impact of acquisitions Reanalysis to As at As at
1 January deferred tax assets 30 June 2025 30 June 2025
2025
£'Million £ Million £ Million £ Million £ Million £ Million
Deferred acquisition costs (DAC) 24.1 (1.9) (1.9) - (17.3) 4.9 14 years
Deferred income (DIR) (30.1) - - - 29.2 (0.9) 14 years
Purchased value of in-force business (PVIF) 1.2 (0.4) (0.4) - - 0.8 2 years
Unrealised capital gains on life insurance (BLAGAB) assets 684.9 (103.3) (103.3) - - 581.6 6 years
backing unit liabilities
Unrelieved expenses on life insurance business (17.3) 3.5 3.5 - 0.1 (13.7) 4 years
Fixed asset temporary differences (0.4) - - - 0.4 - 6 years
Renewal income assets 17.4 - - 0.1 (17.3) 0.2 20 years
Share-based payments (10.1) - - - 10.1 - 3 years
Transitional adjustment 5.0 (0.4) (0.4) (0.3) (0.4) 3.9 4 years
Other temporary differences 4.7 0.2 0.2 - (4.8) 0.1 -
Total 679.4 (102.3) (102.3) (0.2) - 576.9
Charge/(credit) to the statement of comprehensive income Expected utilisation period
As at Utilised and created in year Total charge/ (credit) Impact of acquisitions Reanalysis to As at As at
1 January deferred tax assets 30 June 2024 30 June 2024
2024
£'Million £'Million £'Million £'Million £'Million £'Million
Deferred acquisition costs (DAC) 12.3 (3.3) (3.3) - (0.5) 8.5 14 years
Purchased value of in-force business (PVIF) 2.0 (0.4) (0.4) - - 1.6 2 years
Unrealised capital gains on life insurance (BLAGAB) assets backing unit 423.4 151.9 151.9 - - 575.3 6 years
liabilities
Unrelieved expenses on life insurance business (26.2) 4.5 4.5 - - (21.7) 5 years
Share based payments - - - - 0.1 0.1 3 years
Other temporary differences 0.2 0.1 0.1 - 1.1 1.4 -
Total 411.7 152.8 152.8 - 0.7 565.2
Appropriate investment income, gains or profits are expected to arise against
which the tax assets can be utilised. Whilst the actual rates of utilisation
will depend on business growth and external factors, particularly investment
market conditions, they have been tested for sensitivity to experience and are
resilient to a range of reasonably foreseeable scenarios.
At the reporting date there were unrecognised deferred tax assets of £20.3
million (30 June 2024: £18.2 million, 31 December 2024: £19.4 million) in
respect of £123.0 million (30 June 2024: £107.6 million, 31 December 2024:
£116.7 million) of losses in companies where appropriate profits are not
considered probable in the forecast period. These losses primarily relate to
the Group's AME-based businesses and can be carried forward indefinitely.
Future tax changes
There are no relevant enacted future tax changes.
Pillar Two - global minimum tax
With effect from 1 January 2024 the SJP Group has been subject to the global
minimum tax rules introduced by the Organisation for Economic Co-operation and
Development (OECD) and adopted into local legislation of various territories
in which the SJP Group operates; including the UK and Ireland. The Group is
subject to a domestic top-up tax in relation to its operations in Ireland,
where the statutory corporate tax rate is 12.5%. This increases the effective
tax rate for the SJP profits arising in Ireland to 15% and an adjustment of
£0.4 million additional Irish tax has been recognised in the period in this
respect. A Pillar Two adjustment is not required in any other location in
which SJP operates.
7. Goodwill, intangible assets, deferred acquisition costs and deferred income
Goodwill Purchased Computer DAC DIR
value of in-force software and
business other specific
software
developments
£'Million £'Million £'Million £'Million £'Million
Cost
At 1 January 2024 36.6 73.4 65.6 945.8 (1,636.3)
Additions - - 3.0 22.3 (55.0)
Disposals - - - (89.4) 72.2
At 30 June 2024 36.6 73.4 68.6 878.7 (1,619.1)
Additions - - 2.1 22.9 (60.1)
Disposals _ - - (92.6) 80.8
At 31 December 2024 36.6 73.4 70.7 809.0 (1,598.4)
Additions - - - 26.1 (71.0)
Disposals - - - (100.5) 86.2
At 30 June 2025 36.6 73.4 70.7 734.6 (1,583.2)
Accumulated amortisation
At 1 January 2024 3.0 65.4 37.6 641.4 (1,144.8)
Charge for the period - 1.6 9.8 31.7 (68.6)
Eliminated on disposal - - - (89.4) 72.2
At 30 June 2024 3.0 67.0 47.4 583.7 (1,141.2)
Charge for the period 10.3 1.6 12.6 31.7 (68.5)
Eliminated on disposal - - - (92.6) 80.8
At 31 December 2024 13.3 68.6 60.0 522.8 (1,128.9)
Charge for the period - 1.6 2.0 26.4 (65.1)
Eliminated on disposal - - - (100.5) 86.2
At 30 June 2025 13.3 70.2 62.0 448.7 (1,107.8)
Carrying value
At 30 June 2024 33.6 6.4 21.2 295.0 (477.9)
At 31 December 2024 23.3 4.8 10.7 286.2 (469.5)
At 30 June 2025 23.3 3.2 8.7 285.9 (475.4)
Outstanding amortisation period
At 30 June 2024 n/a 1.5 years 5 years 14 years 6-14 years
At 31 December 2024 n/a 1 year 5 years 14 years 6-14 years
At 30 June 2025 n/a 0.5 years 5 years 14 years 6-14 years
( )
Purchased value of in-force business/DAC/Computer software
Amortisation is charged to expenses in the condensed consolidated statement of
comprehensive income. Amortisation profiles are reassessed annually.
DIR
Amortisation is credited within fee and commission income in the condensed
consolidated statement of comprehensive income. Amortisation profiles are
reassessed annually.
8. Financial investments
Financial investments
30 June 30 June 31 December
2025 2024 2024
£'Million £'Million £'Million
Equities 134,442.5 125,349.2 130,549.0
Fixed income securities 26,820.4 25,185.5 26,118.5
Investment in collective investment schemes 28,462.6 21,432.2 25,652.7
Total financial investments 189,725.5 171,966.9 182,320.2
Net assets held to cover unit liabilities
Included within the condensed consolidated statement of financial position are
the following assets and liabilities comprising the net assets held to cover
unit liabilities. The net assets held to cover unit liabilities are set out in
adjustment 1 of the IFRS to Solvency II Net Assets Balance Sheet
reconciliation in the supplementary information section.
30 June 30 June 31 December
2025 2024 2024
£'Million £'Million £'Million
Assets
Investment property 669.3 1,039.5 892.3
Equities 134,442.5 125,349.2 130,549.0
Fixed income securities 26,811.6 25,177.1 26,109.9
Investment in collective investment schemes 26,685.6 19,354.3 23,458.4
Cash and cash equivalents 6,033.4 6,155.4 5,311.3
Other receivables 1,112.1 1,419.9 816.7
Derivative financial instruments 3,154.3 3,828.0 2,812.8
Total assets 198,908.8 182,323.4 189,950.4
Liabilities
Other payables 1,570.7 1,780.5 692.7
Derivative financial instruments 2,622.9 2,807.5 3,052.1
Total liabilities 4,193.6 4,588.0 3,744.8
Net assets held to cover linked liabilities 194,715.2 177,735.4 186,205.6
Investment contract benefits 147,227.0 133,823.5 141,038.8
Net asset value attributable to unit holders 47,030.0 43,458.0 44,699.5
Unit-linked insurance contract liabilities 458.2 453.9 467.3
Net unit-linked liabilities 194,715.2 177,735.4 186,205.6
The condensed consolidated statement of financial position includes
shareholder assets not included in the above net assets held to cover unit
liabilities. See Note 13 for further information.
9. Other receivables
30 June 30 June 31 December
2025 2024 2024
£'Million £'Million £'Million
Receivables in relation to unit liabilities excluding policyholder 918.4 1,259.9 656.4
interests
Other receivables in relation to life and unit trust business 151.6 193.6 55.9
Operational readiness prepayment 242.4 272.3 256.3
Advanced payments to Partners 127.2 135.5 137.4
Other prepayments and accrued income 47.7 46.3 37.8
Business loans to Partners 603.3 507.0 557.3
Renewal income assets 113.6 145.0 121.0
Miscellaneous 37.2 41.2 45.3
Total other receivables on the Solvency II Net Assets Balance Sheet 2,241.4 2,600.8 1,867.4
Policyholder interests in other receivables 1,112.1 1,419.9 816.7
Other 3.0 3.1 3.3
Total other receivables 3,356.5 4,023.8 2,687.4
All items within other receivables meet the definition of financial assets
with the exception of prepayments and advanced payments to Partners. The fair
value of those financial assets held at amortised cost is not materially
different from amortised cost.
Receivables in relation to unit liabilities relate to outstanding market trade
settlements (sales) in the life unit-linked funds and the consolidated unit
trusts. Other receivables in relation to insurance and unit trust business
primarily relate to outstanding policy-related settlement timings. Both of
these categories of receivables are short-term.
The operational readiness prepayment consists of directly invoiced operational
readiness costs advanced and relates to the Bluedoor administration platform
which has been developed by our key outsourced back-office administration
provider. Management has assessed the recoverability of this prepayment
against the expected cost saving benefit of lower future tariff costs arising
from the platform. It is believed that no reasonably possible change in the
assumptions applied within this assessment, notably levels of future business,
the anticipated future service tariffs and the discount rate, would have an
impact on the carrying value of the asset.
Renewal income assets represent the present value of future cash flows
associated with business combinations or books of business acquired by the
Group.
Business loans to Partners
30 June 30 June 2024 31 December
2025 2024
£'Million £'Million £'Million
Business loans to Partners directly funded by the Group 401.4 384.9 386.6
Securitised business loans to Partners 201.9 122.1 170.7
Total business loans to Partners 603.3 507.0 557.3
Business loans to Partners are interest-bearing (linked to Bank of England
base rate plus a margin), repayable in line with the terms of the loan
contract and secured against the future income streams of the respective
Partners.
Business loans to Partners: provision
The expected loss impairment model for business loans to Partners is based on
the levels of loss experienced in the portfolio, with due consideration given
to forward-looking information.
The provision held against business loans to Partners as at 30 June 2025 was
£8.4 million (30 June 2024: £3.9 million, 31 December 2024: £8.5 million).
There is no provision held against any other receivables held at amortised
cost.
10. Other payables
30 June 30 June 2024 31 December
2025 2024
£'Million £'Million £'Million
Payables in relation to unit liabilities excluding policyholder interests 287.1 597.4 216.7
Other payables in relation to life and unit trust business 781.7 1,111.7 590.4
Accrual for ongoing advice fees 159.3 146.7 168.9
Other accruals 132.8 112.0 138.5
Contract payment 66.0 78.2 72.2
Lease liabilities: properties 101.7 117.3 107.2
Other payables in relation to Partner payments 88.3 77.4 88.9
Miscellaneous 71.9 48.9 62.6
Total other payables on the Solvency II Net Assets Balance Sheet 1,688.8 2,289.6 1,445.4
Policyholder interests in other payables 1,570.7 1,780.5 692.7
Other 8.0 10.7 6.2
Total other payables 3,267.5 4,080.8 2,144.3
Payables in relation to unit liabilities relate to outstanding market trade
settlements (purchases) in the life unit-linked funds and the consolidated
unit trusts. Other payables in relation to insurance and unit trust business
primarily relate to outstanding policy-related settlement timings. Both of
these categories of payables are short-term.
The contract payment of £66.0 million (30 June 2024: £78.2 million, 31
December 2024: £72.2 million) represents payments made by a third-party
service provider to the Group as part of a service agreement, which are
non-interest-bearing and repayable over the life of the service agreement. The
contract payment received prior to 2020 is repayable on a straight-line basis
over the original 12-year term, with repayments commencing on 1 January 2017.
The contract payment received in 2020 is repayable on a straight-line basis
over 13 years and 4 months, with repayments commencing on 1 September 2020.
The lease liabilities: properties line item represents the present value of
future cash flows associated with the Group's portfolio of property leases.
The fair value of financial instruments held at amortised cost within other
payables is not materially different from amortised cost.
Policyholder interests in other payables are short-term in nature and can vary
significantly from period to period due to prevailing market conditions and
underlying trading activity.
11. Other provisions and contingent liabilities
Complaints Ongoing Service Evidence provision Lease Clawback Total provisions
provision provision provision
£'Million £'Million £'Million £'Million £'Million
At 1 January 2024 56.1 426.0 14.9 3.1 500.1
Additional provisions 17.6 - 0.3 - 17.9
Utilised during the year (13.5) (0.5) (0.1) - (14.1)
Impact of discounting - 5.1 - - 5.1
Release of provision (0.6) - (0.3) - (0.9)
At 30 June 2024 59.6 430.6 14.8 3.1 508.1
Additional provisions 4.2 - - 0.3 4.5
Utilised during the year (11.4) (18.0) - - (29.4)
Impact of discounting - 12.5 - - 12.5
Release of provision (34.7) - (0.7) - (35.4)
At 31 December 2024 17.7 425.1 14.1 3.4 460.3
Additional provisions 27.2 - - 0.2 27.4
Utilised during the year (21.9) (28.3) (0.5) - (50.7)
Impact of discounting - 7.7 - - 7.7
Release of provision (9.5) (84.5) (0.3) - (94.3)
At 30 June 2025 13.5 320.0 13.3 3.6 350.4
Other provisions
Complaints provision
The provision represents the best estimate of the complaint redress, based on
complaints identified, an assessment of the proportion redressed; and an
estimated cost of redress based on historic experience. A reasonably possible
change of 10% in the key assumption, being the proportion requiring redress,
would result in an increase/decrease of circa £1.0 million to the total
complaints provision.
Ongoing Service Evidence provision
The Group has committed to review the sub-population of clients that has been
charged for ongoing servicing since the start of 2018 but where the evidence
of delivery falls below the acceptable standard.
The provision represents the best estimate of the redress exercise, and
includes refund of charges, together with interest, plus the administration
costs associated with completing this work. Allowance is also made for
discounting over the expected duration of the exercise. The provision is based
on an extrapolation of the experience of a representative cohort of clients.
See Note 2 for further information.
The release of £84.5 million during the period reflects additional experience
and new industry guidance.
The following table sets out the potential change to the provision balance at
30 June 2025 if the key assumptions were to vary as described:
Sensitivity analysis Change in profit/(loss) before tax
Change in assumption
30 June 30 June 31 December
2025 2024 2024
Percentage £'Million £'Million £'Million
Extrapolation from a representative cohort +2% (19.0) (22.0) (22.0)
- Variation in proportion of client population subject to the review
-2% 19.0 22.0 22.0
Extrapolation from a representative cohort +10% (28.0) (31.0) (31.0)
- Variation in the level of charges, subject to refund
-10% 28.0 31.0 31.0
Opt-In response rate +10% (11.0) (17.0) (17.0)
- Variation in response rate
-10% 11.0 17.0 17.0
Administration costs +10% (4.2) (12.0) (12.0)
- Change in estimation of the cost to fulfil the exercise (cost per claim)
-10% 4.2 12.0 12.0
Lease provision
The lease provision represents the value of expected future costs of
reinstating leased property to its original condition at the end of the lease
term. The estimate is based on the square footage of leased properties and
typical costs per square foot of restoring similar buildings to their original
state.
Clawback provision
The clawback provision represents amounts due to third parties less amounts
recovered from Partners. The provision is based on estimates of the indemnity
commission that may be repaid. The Group expects to utilise the provision on
a straight-line basis over four years.
With the exception of the Complaint and Ongoing Service Evidence provisions,
it is considered that no reasonably possible level of changes in estimates
would have a material impact on the value of the best estimate of the
provisions.
Contingent liabilities
Complaints and disputes
The Group is committed to achieving good client outcomes but does, in the
normal course of business receive complaints and claims. Also, and as
described in the strategic report of the 2024 Annual Report and Accounts, the
FCA continues to reinforce the need for firms to embed the Consumer Duty
regulation and there remains a risk that we fail to provide quality suitable
advice to clients, or that we fail to evidence the provision of good quality
service and advice, which could result in regulatory sanction and/or a need to
refund or compensate clients.
The costs, including tax, legal costs etc. of these issues as they arise can
be significant and where appropriate, provisions have been established in
accordance with IAS 37.
Guarantees
During the normal course of business, the Group may from time to time provide
guarantees to Partners, clients or other third parties. However, based upon
the information currently available to them, the Directors do not believe
there are any guarantees which would have a material adverse effect on the
Group's financial position, and so the fair value of any guarantees has been
assessed as £nil (30 June 2024: £nil, 31 December 2024: £nil).
12. Borrowings and financial commitments
Borrowings
Borrowings are a liability arising from financing activities. The Group has
two different types of borrowings:
· senior unsecured corporate borrowings which are used to manage
working capital, bridge intra-Group cash flows and fund investment in the
business.
· securitisation loan notes which are secured only on a legally
segregated pool of the Group's business loans to Partners and hence are
non-recourse to the Group's other assets. Further information about business
loans to Partners is provided in Note 9.
Senior unsecured corporate borrowings
30 June 30 June 31 December
2025 2024 2024
£'Million £'Million £'Million
Corporate borrowings: bank loans - 250.0 250.0
Corporate borrowings: loan notes 138.3 151.1 138.3
Senior unsecured corporate borrowings 138.3 401.1 388.3
The primary senior unsecured corporate borrowings are:
· An undrawn revolving credit facility (RCF) of £345.0 million
which is repayable at maturity in 2028 with variable interest rates. At 30
June 2025 the undrawn credit available under this facility was £345.0 million
(30 June 2024: £345.0 million, 31 December 2024: £345.0 million).
· A Note Purchase Agreement for £38.3 million. The notes are
repayable in three equal instalments before maturity in 2027, with variable
interest rates.
· A Note Purchase Agreement for £100.0 million. The notes are
repayable at maturity in 2031, with variable interest rates.
During the period the fully drawn £250.0 million bridging loan was repaid in
full and the facility closed.
The Group has covenants within the terms of its senior unsecured corporate
borrowing facilities. These covenants are monitored on a regular basis and
reported to lenders on a six-monthly basis. During the period there were no
changes to the covenants and all were complied with. There are no indications
that the Group would have difficulties complying with the covenants when they
will be next tested at 31 December 2025.
Total borrowings
30 June 30 June 2024 31 December
2025 2024
£'Million £'Million £'Million
Senior unsecured corporate borrowings 138.3 401.1 388.3
Senior tranche of non-recourse securitisation loan notes 161.6 89.5 128.5
Total borrowings 299.9 490.6 516.8
The senior tranche of securitisation loan notes are repayable over the
expected life of the securitisation (estimated to be five years) with a
variable interest rate. They are held by third-party investors and secured on
a legally segregated portfolio of business loans to Partners, and on the other
net assets of the securitisation entity SJP Partner Loans No.1 Limited.
Holders of the securitisation loan notes have no recourse to the assets held
by any other entity within the Group. For further information on business
loans to Partners, including the securitised business loans to Partners during
the year, refer to Note 9.
In addition to the senior tranche of securitisation loan notes, a junior
tranche has been issued to another entity within the Group. The junior notes
were eliminated on consolidation in the preparation of the Group financial
statements and so do not form part of Group borrowings.
30 June 30 June 31 December
2025 2024 2024
£'Million £'Million £'Million
Junior tranche of non-recourse securitisation loan notes 52.4 37.9 48.2
Senior tranche of non-recourse securitisation loan notes 161.6 89.5 128.5
Total non-recourse securitisation loan notes 214.0 127.4 176.7
Backed by
Securitised business loans to Partners (see Note 9) 201.9 122.1 170.7
Other net assets of SJP Partner Loans No.1 Limited 12.1 5.3 6.0
Total net assets held by SJP Partner Loans No.1 Limited 214.0 127.4 176.7
The fair value of the outstanding borrowings is not materially different from
amortised cost. Interest expense on borrowings is recognised within Finance
costs in the condensed consolidated statement of comprehensive income.
Financial commitments
Guarantees
The Group guarantees loans provided by third parties to Partners. In the event
of default on any individual Partner loan, the Group guarantees to repay the
full amount of the loan, with the exception of Metro Bank. For this
third-party the Group guarantees to cover losses up to 50% of the value to the
total loans drawn. These loans are secured against the future income streams
of the Partner. The value of the loans guaranteed is as follows:
Loans guaranteed Facility
30 June 30 June 2024 31 December 30 June 30 June 2024 31 December
2025 2024 2025 2024
£'Million £'Million £'Million £'Million £'Million £'Million
Bank of Scotland 10.1 15.4 12.3 16.0 35.0 16.0
Investec 25.3 31.8 26.5 50.0 50.0 50.0
Metro Bank 8.5 13.1 10.6 35.0 50.0 35.0
NatWest 25.8 30.3 27.5 75.0 75.0 75.0
Santander 174.5 159.3 171.4 187.2 189.1 206.6
Total loans 244.2 249.9 248.3 363.2 399.1 382.6
The fair value of these guarantees has been assessed as £nil (30 June 2024:
£nil, 31 December 2024: £nil).
13. Fair value measurement
Fair value estimation
Financial assets and liabilities, which are held at fair value in the
financial statements, are required to have disclosed their fair value
measurements by level from the following fair value measurement hierarchy:
· Quoted prices (unadjusted) in active markets for identical assets
or liabilities (Level 1);
· Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices) (Level 2); and
· Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (Level 3).
The following tables present the Group's shareholder assets and liabilities
measured at fair value:
Shareholder assets and liabilities
30 June 2025 Level 1 Level 2 Level 3 Total
balance
£'Million £'Million £'Million £'Million
Financial assets
Fixed income securities 8.8 - - 8.8
Investment in collective investment schemes(1) 1,777.0 - - 1,777.0
Renewal income assets - - 113.6 113.6
Total financial assets 1,785.8 - 113.6 1,899.4
Financial liabilities
Contingent consideration - - 1.2 1.2
Total financial liabilities - - 1.2 1.2
30 June 2024 Level 1 Level 2 Level 3 Total
balance
£'Million £'Million £'Million £'Million
Financial assets
Fixed income securities 8.4 - - 8.4
Investment in collective investment schemes(1) 2,077.9 - - 2,077.9
Renewal income assets - - 145.0 145.0
Total financial assets 2,086.3 - 145.0 2,231.3
Financial liabilities
Contingent consideration - - 3.7 3.7
Total financial liabilities - - 3.7 3.7
31 December 2024 Level 1 Level 2 Level 3 Total
balance
£'Million £'Million £'Million £'Million
Financial assets
Fixed income securities 8.6 - - 8.6
Investment in collective investment schemes(1) 2,194.3 - - 2,194.3
Renewal income assets - - 121.0 121.0
Total financial assets 2,202.9 - 121.0 2,323.9
Financial liabilities
Contingent consideration - - 5.3 5.3
Total financial liabilities - - 5.3 5.3
(1) All assets included as shareholder Investment in collective investment
schemes are holdings of high-quality, highly liquid unitised money market
funds, containing assets which are cash and cash equivalents.
The fair value of financial instruments traded in active markets is based on
quoted bid prices at the reporting date. These instruments are included in
Level 1.
Level 2 financial assets are valued using observable prices for identical
current arm's length transactions.
The renewal income assets are classified as Level 3 and are valued using a
discounted cash flow technique. The effect of applying reasonably possible
alternative assumptions of a movement of 100bps on the discount rate and a 10%
movement in the lapse rate would result in an unfavourable change in valuation
of £4.4 million (30 June 2024: £5.8 million, 31 December 2024: £6.1
million) and a favourable change in valuation of £4.8 million (30 June 2024:
£6.4 million, 31 December 2024: £6.6 million), respectively.
The contingent consideration liability is classified as Level 3 and is valued
based on the terms set out in the sale and purchase agreement. Given the
nature of the valuation basis, the effect of applying reasonably possible
alternative assumptions would result in an unfavourable change of £nil
million (30 June 2024: £nil, 31 December 2024: £nil) and a favourable change
of £1.2 million (30 June 2024: £3.7 million, 31 December 2024: £5.3
million).
There were no transfers between Level 1 and Level 2 during the period, nor
into or out of Level 3.
The following tables present the changes in Level 3 financial assets and
liabilities at fair value through the profit and loss:
Financial assets
Six months ended Six months Year ended
30 June 2025 ended 31 December
30 June 2024 2024
£'Million £'Million £'Million
Renewal income assets
Opening balance 121.0 138.3 138.3
Additions during the period 1.4 2.3 4.8
Disposals during the period (0.1) (0.4) (0.7)
Unrealised gains/(losses) recognised in the condensed consolidated statement (8.7) 4.8 (21.4)
of comprehensive income
Closing balance 113.6 145.0 121.0
Unrealised losses on renewal income assets are recognised within investment
return in the condensed consolidated statement of comprehensive income.
Financial liabilities
Six months ended Six months Year ended
30 June 2025 ended 31 December
30 June 2024 2024
£'Million £'Million £'Million
Contingent consideration
Opening balance 5.3 3.2 3.2
Additions during the period 0.1 0.5 3.4
Payments made during the period (4.2) - (1.3)
Closing balance 1.2 3.7 5.3
Unit liabilities and associated assets
30 June 2025 Level 1 Level 2 Level 3 Total
balance
£'Million £'Million £'Million £'Million
Financial assets and investment properties
Investment property - - 669.3 669.3
Equities 134,011.6 - 430.9 134,442.5
Fixed income securities 7,897.3 18,848.0 66.3 26,811.6
Investment in collective investment schemes 26,682.2 - 3.4 26,685.6
Derivative financial instruments - 3,154.3 - 3,154.3
Cash and cash equivalents 6,033.4 - - 6,033.4
Total financial assets and investment properties 174,624.5 22,002.3 1,169.9 197,796.7
Financial liabilities
Investment contract benefits - 147,227.0 - 147,227.0
Derivative financial instruments - 2,622.9 - 2,622.9
Net asset value attributable to unit holders 47,030.0 - - 47,030.0
Total financial liabilities 47,030.0 149,849.9 - 196,879.9
30 June 2024 Level 1 Level 2 Level 3 Total
balance
£'Million £'Million £'Million £'Million
Financial assets and investment properties
Investment property - - 1,039.5 1,039.5
Equities 124,208.2 - 1,141.0 125,349.2
Fixed income securities 6,686.7 18,354.7 135.7 25,177.1
Investment in collective investment schemes 19,344.5 - 9.8 19,354.3
Derivative financial instruments - 3,828.0 - 3,828.0
Cash and cash equivalents 6,155.4 - - 6,155.4
Total financial assets and investment properties 156,394.8 22,182.7 2,326.0 180,903.5
Financial liabilities
Investment contract benefits - 133,823.5 - 133,823.5
Derivative financial instruments - 2,807.5 - 2,807.5
Net asset value attributable to unit holders 43,458.0 - - 43,458.0
Total financial liabilities 43,458.0 136,631.0 - 180,089.0
31 December 2024 Level 1 Level 2 Level 3 Total
balance
£'Million £'Million £'Million £'Million
Financial assets and investment properties
Investment property - - 892.3 892.3
Equities 129,554.8 - 994.2 130,549.0
Fixed income securities 6,938.3 19,059.7 111.9 26,109.9
Investment in collective investment schemes 23,447.1 - 11.3 23,458.4
Derivative financial instruments - 2,812.8 - 2,812.8
Cash and cash equivalents 5,311.3 - - 5,311.3
Total financial assets and investment properties 165,251.5 21,872.5 2,009.7 189,133.7
Financial liabilities
Investment contract benefits - 141,038.8 - 141,038.8
Derivative financial instruments - 3,052.1 - 3,052.1
Net asset value attributable to unit holders 44,699.5 - - 44,699.5
Total financial liabilities 44,699.5 144,090.9 - 188,790.4
In respect of the derivative financial liabilities, £4.0 million of
collateral has been posted at 30 June 2025, comprising cash and treasury bills
(30 June 2024: £128.9 million, 31 December 2024: £158.8 million), in
accordance with the terms and conditions of the derivative contracts.
The fair value of financial instruments traded in active markets is based on
quoted bid prices at the reporting date. These instruments are included in
Level 1.
The Group closely monitors the valuation of assets in markets that have become
less liquid. Determining whether a market is active requires the exercise of
judgement and is determined based upon the facts and circumstances of the
market for the instrument being measured. Where it is determined that there is
no active market, fair value is established using a valuation technique. The
techniques applied incorporate relevant information available and reflect
appropriate adjustments for credit and liquidity risks. These valuation
techniques maximise the use of observable market data where it is available
and rely as little as possible on entity-specific estimates. The relative
weightings given to differing sources of information and the determination of
non-observable inputs to valuation models can require the exercise of
significant judgement.
If all significant inputs required to fair value an instrument are observable,
the instrument is included in Level 2. If one or more of the significant
inputs is not based on observable market data, the instrument is included in
Level 3.
Note that all of the resulting fair value estimates are included in Level 2,
except for certain equities and investments in Collective Investment Schemes
(CIS) and investment properties as detailed below.
Specific valuation techniques used to value Level 2 financial assets and
liabilities include the use of observable prices for identical current arm's
length transactions, specifically:
· The fair value of fixed income securities is determined by inputs
including interest rates and market-observable yield curves of similar
instruments in the market;
· The fair value of unit-linked liabilities is assessed by
reference to the value of the underlying net asset value of the Group's
unitised investment funds, determined on a bid value, at the reporting date;
and
· The Group's derivative financial instruments are valued using
valuation techniques commonly used by market participants. These consist of
discounted cash flow and options pricing models, which typically incorporate
observable market data, principally interest rates, basis spreads, foreign
exchange rates, equity prices and counterparty credit.
Specific valuation techniques used to value Level 3 financial assets and
liabilities include:
· The use of unobservable inputs, such as expected rental values
and equivalent yields; and
· Other techniques, such as discounted cash flow and historic lapse
rates, are used to determine fair value for the remaining financial
instruments.
There were no transfers between Level 1 and Level 2 during the period.
Transfers into and out of Level 3 portfolios
Transfers out of Level 3 portfolios arise when inputs that could have a
significant impact on the instrument's valuation become market observable;
conversely, transfers into the portfolios arise when consistent sources of
data cease to be available.
Transfers in of certain equities and investments in CIS occur when asset
valuations can no longer be obtained from an observable market price i.e.
become illiquid, in liquidation, suspended etc. The converse is true if an
observable market price becomes available.
Transfers into Level 3 during the period total £0.9 million (30 June 2024:
£4.6 million, 31 December 2024: £8.8 million) and were transferred from
Level 1 to Level 3 due to asset valuations no longer being obtained from an
observable market price. The transfers out of Level 3 during the period
total £8.5 million (30 June 2024: £2.0 million, 31 December 2024: £nil) and
were transferred from Level 3 to Level 1 due to assets being actively priced.
The following table presents the changes in Level 3 financial assets and
liabilities at fair value through the profit and loss:
Six months ended 30 June 2025 Investment Fixed Equities Investment
property income in CIS
securities
£'Million £'Million £'Million £'Million
Opening balance 892.3 111.9 994.2 11.3
Transfer into Level 3 - - - 0.9
Transfer out of Level 3 - - - (8.5)
Additions during the period 3.4 7.2 13.9 -
Disposals during the period (238.9) (46.7) (508.7) (0.2)
Gains/(losses) recognised in the Income statement 12.5 (6.1) (68.5) (0.1)
Closing balance 669.3 66.3 430.9 3.4
Realised gains/(losses) 21.4 (7.2) 158.0 -
Unrealised (losses)/gains (8.9) 1.1 (226.5) (0.1)
Gains/(Losses) recognised in the income statement 12.5 (6.1) (68.5) (0.1)
Six months ended 30 June 2024 Investment Fixed Equities Investment
property income in CIS
securities
£'Million £'Million £'Million £'Million
Opening balance 1,110.3 346.5 1,627.0 7.4
Transfer into Level 3 - - - 4.6
Transfer out of Level 3 - - - (2.0)
Additions during the period 9.2 9.9 9.5 -
Disposals during the period (57.2) (223.7) (503.4) (0.3)
(Losses)/gains recognised in the Income statement (22.8) 3.0 7.9 0.1
Closing balance 1,039.5 135.7 1,141.0 9.8
Realised (losses)/gains (81.1) 2.2 133.4 -
Unrealised gains/(losses) 58.3 0.8 (125.5) 0.1
(Losses)/gains recognised in the Income statement (22.8) 3.0 7.9 0.1
Year ended 31 December 2024 Investment Fixed Equities Investment
property income in CIS
securities
£'Million £'Million £'Million £'Million
Opening balance 1,110.3 346.5 1,627.0 7.4
Transfer into Level 3 - 4.8 - 4.0
Additions during the year 15.8 33.9 62.7 -
Disposals during the year (230.5) (270.2) (724.4) (0.5)
(Losses)/gains recognised in the Income statement (3.3) (3.1) 28.9 0.4
Closing balance 892.3 111.9 994.2 11.3
Realised (losses)/gains (95.3) (2.0) 177.6 -
Unrealised gains/(losses) 92.0 (1.1) (148.7) 0.4
(Losses)/gains recognised in the income statement (3.3) (3.1) 28.9 0.4
Realised (losses)/gains and unrealised gains/(losses) for all Level 3 assets
are recognised within investment return in the condensed consolidated
statement of comprehensive income.
Level 3 valuations
Investment property
At 30 June 2025 the Group held £669.3 million (30 June 2024: £1,039.5
million, 31 December 2024: £892.3 million) of investment property, all of
which is classified as Level 3 in the fair value hierarchy. It is initially
measured at cost including related acquisition costs and subsequently valued
at least monthly by professional external valuers at the properties'
respective fair values at each reporting date. The fair values derived are
based on anticipated market values for the properties in accordance with the
guidance issued by the Royal Institution of Chartered Surveyors, being the
estimated amount that would be received from a sale of the assets in an
orderly transaction between market participants. The valuation of investment
property is inherently subjective as it requires, among other factors,
assumptions to be made regarding the ability of existing tenants to meet their
rental obligations over the entire life of their leases, the estimation of the
expected rental income into the future, an assessment of a property's
potential to remain as an attractive technical configuration to existing and
prospective tenants in a changing market and a judgement on the attractiveness
of a building, its location and the surrounding environment.
Investment property classification
Office Industrial Retail and All
leisure
30 June 2025
Gross ERV (per sq ft)(1)
Range £19.00 - £63.50 £12.00 - £24.00 £1.86 - £80.00 £1.86 - £80.00
Weighted average £39.36 £17.13 £17.72 £18.61
True equivalent yield
Range 5.1% - 9.5% 4.9% - 10.3% 4.5% - 30.0% 4.5% - 30.0%
Weighted average 7.8% 5.3% 7.0% 6.7%
30 June 2024
Gross ERV (per sq ft)(1)
Range £29.50 - £110.00 £5.25 - £24.00 £1.86 - £80.00 £1.86 - £110.00
Weighted average £49.54 £10.44 £12.35 £14.59
True equivalent yield
Range 4.7% - 10.3% 5.0% - 6.8% 6.2% - 9.6% 4.7% - 10.3%
Weighted average 6.6% 5.6% 7.6% 6.5%
31 December 2024
Gross ERV (per sq ft)(1)
Range £31.00 - £120.00 £5.50 - £24.00 £1.86 - £80.00 £1.86 - £120.00
Weighted average £49.70 £14.46 £13.96 £17.70
True equivalent yield
Range 4.7% - 10.5% 4.6% - 7.0% 5.7% - 9.1% 4.7% - 10.5%
Weighted average 6.8% 5.6% 7.3% 6.3%
1. Equivalent rental value (per square foot).
Fixed income securities and equities
At 30 June 2025 the Group held £66.3 million (30 June 2024: £135.7 million,
31 December 2024: £111.9 million) in private credit investments, and £430.9
million (30 June 2024: £1,138.8 million, 31 December 2024: £994.2 million)
in private market investments through the St. James's Place Diversified Assets
(FAIF) Unit Trust. These are recognised within fixed income securities and
equities, respectively, in the condensed consolidated statement of financial
position. They are initially measured at cost and are subsequently remeasured
to fair value following a monthly valuation process which includes
verification by suitably qualified professional external valuers, who are
members of various industry bodies including the British Private Equity and
Venture Capital Association.
The fair values of the private credit investments are principally determined
using two valuation methods:
1. The shadow rating method, which assigns a shadow credit rating to the debt
issuing entity and determines an expected yield with reference to observable
yields for comparable companies with public credit rating in the loan market;
and
2. The weighted average cost of capital (WACC) method, which determines the
debt issuing entity's WACC with reference to observable market comparatives.
The expected yield and WACC are used as the discount rates to calculate the
present value of the expected future cash flows under the shadow rating and
WACC methods respectively, which is taken to be the fair value.
The fair values of the private equity investments are principally determined
using two valuation methods:
1. A market approach with reference to suitable market comparatives; and
2. An income approach using discounted cash flow analysis which assesses the
fair value of each asset based on its expected future cash flows.
The output of each method for both the private credit and private equity
investments is a range of values, from which the mid-point is selected to be
the fair value in the majority of cases. The mid-point would not be selected
if further information is known about an investment which cannot be factored
into the valuation method used. A weighting is assigned to the values
determined following each method to determine the final valuation.
The valuations are inherently subjective as they require a number of
assumptions to be made, such as determining which entities provide suitable
market comparatives and their relevant performance metrics (for example
earnings before interest, tax, depreciation and amortisation), determining
appropriate discount rates and cash flow forecasts to use in models, the
weighting to apply to each valuation methodologies and the point in the range
of valuations to select as the fair value.
Sensitivity of Level 3 valuations
Investment in collective investment schemes
The valuation of certain investments in CIS are based on the latest observable
price available. Whilst such valuations are sensitive to estimates, it is
believed that changing the price applied to a reasonably possible alternative
would not change the fair value significantly.
Investment property
As set out above, investment property is initially measured at cost including
related acquisition costs and subsequently valued monthly by professional
external valuers at their respective fair values. The following table sets out
the effect of applying reasonably possible alternative assumptions, being a
10% movement in estimated rental value and a 50bps movement in the relative
yield, to the valuation of the investment properties. Any change in the value
of investment property is matched by the associated movement in the
policyholder liability, and therefore would not impact on the shareholder net
assets.
Investment property significant unobservable inputs Effect of reasonable possible alternative assumptions
Carrying value Favourable Unfavourable
changes changes
£'Million £'Million £'Million
30 June 2025 Expected rental value / Relative yield 669.3 794.7 565.4
30 June 2024 Expected rental value / Relative yield 1,039.5 1,231.8 876.9
31 December 2024 Expected rental value / Relative yield 892.3 1,064.5 747.0
Fixed income securities and equities
As set out above, the fair values of the Level 3 fixed income securities and
equities are selected from the valuation range determined through the monthly
valuation process. The following table sets out the effect of valuing each of
the assets at the high and low point of the range. As for investment property,
any change in the value of these fixed income securities or equities is
matched by an associated movement in the policyholder liability, and therefore
would not impact on the shareholder net assets.
Effect of reasonable possible alternative assumptions
Carrying value Favourable Unfavourable
changes changes
£'Million £'Million £'Million
30 June 2025 Fixed income securities 66.3 68.2 64.5
Equities 430.9 490.8 375.7
30 June 2024 Fixed income securities 135.7 139.9 131.5
Equities 1,141.0 1,298.3 1,049.4
31 December 2024 Fixed income securities 111.9 115.6 108.1
Equities 994.2 1,128.1 911.7
14. Cash generated from operations
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2025 2024 2024
£'Million £'Million £'Million
Cash flows from operating activities
Profit before tax for the year 505.4 577.0 1,049.1
Adjustments for:
Amortisation of purchased value of in-force business 1.6 1.6 3.2
Amortisation of computer software 2.0 9.8 22.4
Depreciation 10.4 11.7 23.4
Impairment of goodwill - - 10.3
Loss on disposal of property and equipment, including leased assets - 1.2 4.1
Share-based payment charge 5.6 2.1 11.2
Interest income (111.3) (113.3) (236.6)
Interest expense 15.5 16.2 36.4
(Decrease)/increase in provisions (109.9) 8.0 (39.8)
Exchange rate losses/(gains) 3.4 0.3 (0.2)
(182.7) (62.4) (165.6)
Changes in operating assets and liabilities
Decrease in deferred acquisition costs 0.3 9.4 18.2
Decrease in investment property 223.0 70.8 218.0
Increase in other investments (7,746.8) (14,400.6) (23,738.7)
Increase in investments in associates (0.3) - (3.5)
Decrease/(increase) in reinsurance assets 5.8 (2.9) (1.9)
(Increase)/decrease in other receivables (669.2) (1,008.5) 310.3
(Decrease)/increase in insurance contract liabilities (12.9) 21.4 22.6
Increase in financial liabilities (excluding borrowings) 5,759.0 10,408.2 17,868.1
Increase/(decrease) in deferred income 5.9 (13.6) (22.0)
Increase/(decrease) in other payables 1,134.2 1,667.2 (246.1)
Increase in net assets attributable to unit holders 2,330.5 2,921.5 4,163.0
1,029.5 (327.1) (1,412.0)
Cash generated from/(used in) operations 1,352.2 187.5 (528.5)
15. Share capital, earnings per share and shareholder returns
Share capital
Number of Called-up
ordinary shares share capital
£'Million
At 1 January 2024 548,604,794 82.3
At 30 June 2024 548,604,794 82.3
- Shares repurchased in the buy-back programme (4,590,083) (0.7)
At 31 December 2024 544,014,711 81.6
- Issue of shares 9,750 -
- Shares repurchased in the buy-back programme (9,516,886) (1.4)
At 30 June 2025 534,507,575 80.2
Ordinary shares have a par value of 15 pence per share (30 June 2024: 15 pence
per share, 31 December 2024: 15 pence per share) and are fully paid.
Included in the called-up share capital are 7,125,584 (30 June 2024:
4,218,520, 31 December 2024: 4,876,364) shares held in the Shares in trust
reserve with a nominal value of £1.1 million (30 June 2024: £0.6 million, 31
December 2024: £0.7 million). The shares are held by the SJP Employee
Benefit Trust and the St. James's Place Share Incentive Plan Trust to
satisfy certain share-based payment schemes. The Trustees of the SJP Employee
Benefit Trust retain the right to dividends on the shares held by the Trust
but have chosen to waive their entitlement to the dividends on 4,043,773
shares at 30 June 2025 (30 June 2024: 1,413,848 shares, 31 December 2024:
2,135,521 shares). The trustees of St. James's Place Share Incentive Plan
Trust retain the right to dividends on forfeited shares held by the Trust but
have chosen to waive their entitlement to the dividend on 648 shares at 30
June 2025 (30 June 2024: 205 shares, 31 December 2024: 1,034 shares).
Share capital increases are included within the exercise of options line of
the table above where they relate to the Group's share-based payment schemes.
Other share capital increases are included within the issue of shares line.
During the period, the Company repurchased and cancelled 9,516,886 shares (30
June 2024: nil, 31 December 2024: 4,590,083 shares) for a total consideration
of £92.6 million (30 June 2024: £nil, 31 December 2024: £32.9 million) and
incurred transaction costs of £0.6 million (30 June 2024: £nil, 31 December
2024: £0.2 million). The cancelled shares, which had a nominal value of £1.4
million (30 June 2024: £nil, 31 December 2024: £0.7 million), have been
reflected as a decrease in share capital with a corresponding increase in the
capital redemption reserve as required by the Companies Act 2006.
Earnings per share
Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
£'Million £'Million £'Million
Earnings
Profit after tax attributable to equity shareholders (for both basic and 279.3 165.1 398.4
diluted EPS)
Million Million Million
Weighted average number of shares
Weighted average number of ordinary shares in issue (for basic EPS) 537.6 548.2 545.4
Adjustments for outstanding share options 3.2 4.7 3.6
Weighted average number of ordinary shares (for diluted EPS) 540.8 552.9 549.0
Pence Pence Pence
Earnings per share (EPS)
Basic earnings per share 52.0 30.1 73.0
Diluted earnings per share 51.6 29.9 72.6
Dividends
The following dividends have been paid by the Group:
Six months Six months Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
£'Million £'Million £'Million
Final dividend in respect of 2023 - 8.0 pence per ordinary share - 43.8 43.8
Interim dividend in respect of 2024 - 6.0 pence per ordinary share - - 32.8
Final dividend in respect of 2024 - 12.0 pence per ordinary share 64.4 - -
Total dividends 64.4 43.8 76.6
The Directors have resolved to pay an interim dividend of 6.00 pence per share
(30 June 2024: 6.00 pence per share). This amounts to £32.1 million (30 June
2024: £32.8 million) and will be paid on 19 September 2025 to shareholders on
the register as at 8 August 2025.
In addition, under the authority granted by shareholders at the 2025 Annual
General Meeting, the Directors have resolved to undertake:
· an interim share buy-back programme in respect of the 2025
financial year committing to purchase shares up to a maximum value of £32.1
million; and
· an additional £63.4 million share buy-back to return capital to
shareholders following a £63.4 million net of tax release from the Ongoing
Service Evidence provision.
These share buy-backs will commence in August 2025.
16. Non-statutory accounts
The financial information shown in this publication is unaudited and does not
constitute statutory accounts. The comparative figures for the financial year
ending 31 December 2024 are not the Company's statutory accounts for the
financial year. Those accounts have been reported on by the Company's auditors
and delivered to the Registrar of Companies.
The report of the auditors was unmodified and did not include a reference to
any matter to which the auditors drew attention to, by way of emphasis without
modifying their report, and did not contain a statement under section 498 of
the Companies Act 2006.
17. Approval of the Half-Year Report
These condensed consolidated half-year financial statements were approved by
the Board of Directors on 30 July 2025.
18. National storage mechanism
A copy of the Half-Year Report will be submitted shortly to the National
Storage Mechanism (NSM) and will be available for inspection at the NSM, which
is situated at: National Storage Mechanism | FCA
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
Independent review report to St. James's Place plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed St. James's Place plc's condensed consolidated interim
financial statements (the "interim financial statements") in the Press Release
and Half-Year Report and Accounts of St. James's Place plc for the 6 month
period ended 30 June 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Condensed Consolidated Statement of Financial Position as at
30 June 2025;
· the Condensed Consolidated Statement of Comprehensive Income for
the period then ended;
· the Condensed Consolidated Statement of Cash Flows for the period
then ended;
· the Condensed Consolidated Statement of Changes in Equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Press Release and Half-Year
Report and Accounts of St. James's Place plc have been prepared in accordance
with UK adopted International Accounting Standard 34, 'Interim Financial
Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Press Release and
Half-Year Report and Accounts and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the interim
financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities from the interim financial statements and the review
Our responsibilities and those of the Directors
The Press Release and Half-Year Report and Accounts, including the interim
financial statements, is the responsibility of, and has been approved by the
directors. The directors are responsible for preparing the Press Release and
Half-Year Report and Accounts in accordance with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority. In preparing the Press Release and Half-Year Report and Accounts,
including the interim financial statements, the directors are responsible for
assessing the group's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Press Release and Half-Year Report and Accounts based on our
review. Our conclusion, including our Conclusions relating to going concern,
is based on procedures that are less extensive than audit procedures, as
described in the Basis for conclusion paragraph of this report. This report,
including the conclusion, has been prepared for and only for the company for
the purpose of complying with the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority and for no
other purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom this
report is shown or into whose hands it may come save where expressly agreed by
our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Bristol
30 July 2025
Responsibility Statement of the Directors in respect of the Half-Year
Financial Report
The Directors confirm that this consolidated interim financial information has
been prepared in accordance with IAS 34 as adopted by the UK and that the
interim management report includes a fair review of the information required
by DTR 4.2.7R and DTR 4.2.8R, namely:
· an indication of important events that have occurred during the
first six months of the financial year and their impact on the condensed set
of consolidated financial statements, and a description of the principal risks
and uncertainties for the remaining six months of the financial year; and
· material related-party transactions in the first six months and
any material changes in the related party transactions described in the last
Annual Report.
The Directors of St. James's Place plc are listed in the St. James's Place plc
Annual Report for 31 December 2024. A list of current Directors is maintained
on the St. James's Place plc website: www.sjp.co.uk (http://www.sjp.co.uk) .
The Directors are responsible for the maintenance and integrity of the Group's
website. Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.
On behalf of the Board:
Mark FitzPatrick Caroline Waddington
Chief Executive Officer Chief Financial Officer
30 July 2025 30 July 2025
Supplementary Information: Cash result
Included below is further information on the Cash result alternative profit
measure.
Reconciliation of Cash result to IFRS profit before shareholder tax
The Cash result reconciles to IFRS profit before shareholder tax, as presented
in section 2.1 of the Financial Review, as follows:
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Before shareholder tax After tax Before shareholder tax After tax Before shareholder tax After tax
£'Million £'Million £'Million £'Million £'Million £'Million
Underlying cash result 313.1 240.4 259.2 205.2 580.9 447.2
Ongoing Service Evidence provision release 84.5 63.4 - - - -
Other variance (6.1) (4.6) (4.0) (3.0) - -
Cash result 391.5 299.2 255.2 202.2 580.9 447.2
Movements in DAC, DIR and PVIF (8.7) (6.9) 3.1 2.6 0.5 (0.1)
Impact of policyholder tax asymmetry (10.8) (10.8) (33.4) (33.4) (38.9) (38.9)
Equity-settled share-based payments (5.2) (5.2) (2.1) (2.1) (11.2) (11.2)
Impact of deferred tax - 3.0 - (9.2) - (9.0)
Other 1.1 0.2 2.3 5.0 4.6 10.4
IFRS profit 367.9 279.5 225.1 165.1 535.9 398.4
Movements in DAC, DIR and PVIF is the amortisation of upfront expenses
incurred, and income received which IFRS required to be deferred. DAC, DIR and
PVIF represent timing differences between the recognition of income and
expenses and the cash being received or paid. Further information can be found
in the databook available on our website
sjp.co.uk/half-year-results-2025-databook
(https://sjpwealth.sharepoint.com/sites/finance/fa/annualreport/sjp.co.uk/half-year-results-2025-databook)
.
The impact of policyholder tax asymmetry is a temporary effect caused by
asymmetries between fund tax deductions and the policyholder tax due to HMRC.
Movement in the asymmetry can be significant in volatile markets.
Equity-settled share-based payments represent the expense associated with a
number of equity-settled share schemes across the Group.
The impact of deferred tax is the recognition in the Cash result of the
benefit from realising tax relief on various items including share options,
capital allowances and deferred expenses. These have already been recognised
under IFRS through the establishment of deferred tax assets. More information
can be found in Note 6 to the IFRS condensed consolidated financial
statements.
Other represents a number of small items, including the removal of other
intangibles and the difference between the lease expense recognised under
IFRS 16 Leases and lease payments made.
The Cash result is derived from the IFRS condensed consolidated statement of
financial position in a two-stage process:
Stage 1: Solvency II Net Assets Balance Sheet
Firstly, the IFRS condensed consolidated statement of financial position is
adjusted to remove policyholder assets and liabilities, and non-cash
'accounting' balances such as DIR, DAC and associated deferred tax. The result
of these adjustments is the Solvency II Net Assets Balance Sheet. The way this
reconciles to the IFRS condensed consolidated statement of financial position
at 30 June 2025 is shown below.
IFRS Adjustment Adjustment Solvency II Solvency II Net Assets
Balance 1 2 Net Assets
Balance Sheet
Sheet Balance
Sheet
30 June 2024 31 December
2024
30 June 2025 Note £'Million £'Million £'Million £'Million £'Million £'Million
Assets
Goodwill 23.3 - (23.3) - - -
Deferred acquisition costs 285.9 - (285.9) - - -
Intangible assets 11.9 - (11.9) - - -
Property and equipment 125.6 - - 125.6 147.9 134.0
Investment property 669.3 (669.3) - - - -
Deferred tax assets 7.4 - (7.3) 0.1 1.7 0.1
Investment in associates 23.9 - - 23.9 10.4 21.9
Reinsurance assets 9.1 - (4.4) 4.7 9.7 10.7
Other receivables a 3,356.5 (1,112.1) (3.0) 2,241.4 2,600.8 1,867.4
Financial investments b 189,725.5 (187,939.7) - 1,785.8 2,086.3 2,202.9
Derivative financial assets 3,154.3 (3,154.3) - - - -
Cash and cash equivalents b 6,403.5 (6,033.4) - 370.1 349.4 352.6
Total assets 203,796.2 (198,908.8) (335.8) 4,551.6 5,206.2 4,589.6
Liabilities
Borrowings 299.9 - - 299.9 490.6 516.8
Deferred tax liabilities 576.9 - 8.4 585.3 567.7 690.1
Insurance contract liabilities 505.7 (458.2) (36.8) 10.7 24.7 14.3
Deferred income 475.4 - (475.4) - - -
Other provisions 350.4 - - 350.4 508.1 460.3
Other payables 3,267.5 (1,570.7) (8.0) 1,688.8 2,289.6 1,445.4
Investment contract benefits 147,227.0 (147,227.0) - - - -
Derivative financial liabilities 2,622.9 (2,622.9) - - - -
Net asset value attributable to unit holders 47,030.0 (47,030.0) - - - -
Income tax liabilities 74.3 - - 74.3 74.4 22.1
Total liabilities 202,430.0 (198,908.8) (511.8) 3,009.4 3,955.1 3,149.0
Net assets 1,366.2 - 176.0 1,542.2 1,251.1 1,440.6
Adjustment 1 strips out policyholder assets and liabilities, to present solely
shareholder-impacting balances.
Adjustment 2 removes items such as DAC, DIR, PVIF and their associated
deferred tax balances from the IFRS statement of financial position to bring
it in line with Solvency II recognition requirements.
Stage 2: Movement in Solvency II Net Assets Balance Sheet
After the Solvency II Net Assets Balance Sheet has been determined, the second
stage in the derivation of the Cash result identifies a number of movements in
that balance sheet which do not represent cash flows for inclusion within the
Cash result. The following table explains how the overall Cash result
reconciles to the total movement.
Six months ended 30 June 2025 Six months ended Year ended 31 December 2024
30 June 2024
£'Million £'Million £'Million
Opening Solvency II net assets 1,440.6 1,133.0 1,133.0
Dividend paid (64.6) (43.9) (76.8)
Issue of share capital and exercise of options 0.1 - -
Consideration paid for own shares (34.5) (3.6) (9.5)
Change in deferred tax 3.0 (9.2) (9.6)
Impact of policyholder tax asymmetry (10.8) (33.4) (38.9)
Change in goodwill, intangibles and other non-cash movements 2.4 6.0 28.3
Shares repurchased in buy-back programmes (93.2) - (33.1)
Cash result 299.2 202.2 447.2
Closing Solvency II net assets 1,542.2 1,251.1 1,440.6
Other Information
Glossary of alternative performance measures
Within this document various alternative performance measures (APMs) are
disclosed.
An APM is a measure of financial performance, financial position or cash flows
which is not defined by the relevant financial reporting framework, which for
the Group is International Financial Reporting Standards as adopted by the UK
(adopted IFRSs). APMs are used to provide greater insight into the performance
of the Group and the way it is managed by the Directors. The tables below
define each APM, explains why it is used and, if applicable, detail where the
APM has been reconciled to IFRS:
Financial-position-related APMs
APM Definition Why is this measure used? Reconciliation
to the financial statements
Solvency II net assets Based on IFRS Net Assets, but with the following adjustments: Our ability to satisfy our liabilities to clients, and consequently our Refer to the supplementary information section.
solvency, is central to our business. By removing the liabilities which are
1. Adjustment to remove the matching client assets and the liabilities as fully matched by assets, this presentation allows the reader to focus on the
these do not represent shareholder assets. business operation. It also provides a simpler comparison with other wealth
management companies.
2. Reflection of the recognition requirements of the Solvency II regulations
for assets and liabilities. In particular this removes deferred acquisition
costs (DAC), deferred income (DIR), purchased value of in-force (PVIF)
and their associated deferred tax balances, other intangibles and some other
small items which are treated as inadmissible from a regulatory perspective;
and
No adjustment is made to deferred tax, except for that arising on DAC, DIR and
PVIF, as this is treated as an allowable asset in the Solvency II regulation.
Solvency II net assets are not the same as Solvency II own funds as it
excludes Solvency II value of in-force (VIF) and Risk margin.
EEV net asset value (NAV) per share EEV net asset value per share is calculated as the EEV net assets divided by Total embedded value provides a measure of total economic value of the Group, Not applicable.
the period-end number of ordinary shares. and assessing the EEV NAV per share allows analysis of the overall value of
the Group by share.
IFRS NAV per share IFRS net asset value per share is calculated as the IFRS net assets divided by Total IFRS net assets provides a measure of value of the Group, and assessing Not applicable.
the period-end number of ordinary shares. the IFRS NAV per share allows analysis of the overall value of the Group by
share.
Cash result, and Underlying cash result The Cash result is defined as the movement between the opening and closing IFRS income statement methodology recognises non-cash items such as deferred Refer to the supplementary information section and also see Note 3 to
Solvency II net assets adjusted as follows: tax and equity-settled share options. By contrast, dividends can only be paid the condensed consolidated financial statements.
to shareholders from appropriately fungible assets. The Board therefore uses
1. The movement in deferred tax is excluded, except that in relation to the the Cash results to monitor the level of cash generated by the business.
exceptional Ongoing Service Evidence provision;
While the Cash result gives an absolute measure of the cash generated in the
2. The movements in goodwill and other intangibles are excluded; and period, the Underlying cash result is particularly useful for monitoring the
expected long-term rate of cash emergence, which supports dividends and
3. Other changes in equity, such as dividends paid in the period and sustainable dividend growth.
equity-settled share option costs, are excluded.
The Underlying cash result reflects the regular emergence of cash from the
business, excluding any items of a one-off nature and temporary timing
differences.
The Cash result reflects all other cash items, including items of a one-off
nature and temporary timing differences.
Neither the Cash result nor the Underlying cash result should be confused with
the IFRS condensed consolidated statement of cash flows which is prepared in
accordance with IAS 7.
Underlying cash basic and diluted earnings per share (EPS) These EPS measures are calculated as Underlying cash divided by the number of As Underlying cash is the best reflection of the cash generated by the Not applicable.
shares used in the calculation of IFRS basic and diluted EPS. business, Underlying cash EPS measures allow analysis of the shareholder cash
generated by the business by share.
EEV profit Derived as the movement in the total EEV during the period. Both the IFRS and Cash results reflect only the cash flows in the period. See Note 3 to the condensed consolidated financial statements.
However, our business is long-term, and activity in the period can generate
business with a long-term value. We therefore believe it is helpful to
understand the full economic impact of activity in the period, which is the
aim of the EEV methodology.
EEV operating profit A discounted cash flow valuation methodology, assessing the long-term economic Both the IFRS and Cash results reflect only the cash flows in the period. See Note 3 to the condensed consolidated financial statements.
value of the business. However, our business is long-term, and activity in the period can generate
business with a long-term value. We therefore believe it is helpful to
Our embedded value is determined in line with the EEV principles originally understand the full economic impact of activity in the period, which is the
set out by the Chief Financial Officers (CFO) Forum in 2004, and amended for aim of the EEV methodology.
subsequent changes to the principles, including those published in April 2016,
following the implementation of Solvency II. Within the EEV, many of the future cash flows derive from fund charges, which
change with movements in stock markets. Since the impact of these changes is
The EEV operating profit reflects the total EEV result with an adjustment to typically unrelated to the performance of the business, we believe that the
strip out the impact of stock market and other economic effects during the EEV operating profit (reflecting the EEV profit, adjusted to reflect only the
period. expected investment performance and no change in economic basis) provides the
most useful measure of embedded value performance in the period.
Within EEV operating profit is new business contribution, which is the change
in embedded value arising from writing new business during the period.
Policyholder and shareholder tax Shareholder tax is estimated by making an assessment of the effective rate of The UK tax regime facilitates the collection of tax from life insurance Disclosed as separate line items in the statement of comprehensive income.
tax that is applicable to the shareholders on the profits attributable to the policyholders by making an equivalent charge within the corporate tax of the
shareholders. This is calculated by applying the appropriate effective Company. The total tax charge for the insurance companies therefore comprises
corporate tax rates to the shareholder profits. both this element and an element more closely related to normal corporation
tax.
The remainder of the tax charge represents tax on policyholders' investment
returns. Life insurance business impacted by this tax typically includes policy charges
which align with the tax liability, to mitigate the impact on the corporate
This calculation method is consistent with UK legislation relating to the entity. As a result, when policyholder tax increases, the charges
calculation of the tax on shareholders' profits. also increase. Since these offsetting items can be large, and typically do
not perform in line with the business, it is beneficial to be able to
identify the two elements separately. We therefore refer to that part of the
overall tax charge which is deemed attributable to policyholders as
policyholder tax, and the rest as shareholder tax.
Profit before shareholder tax A profit measure which reflects the IFRS result adjusted for policyholder tax, The IFRS methodology requires that the tax recognised in the financial Disclosed as a separate line item in the statement of comprehensive income.
but before deduction of shareholder tax. Within the condensed consolidated statements should include the tax incurred on behalf of policyholders in our
statement of comprehensive income the full title of this measure is 'profit UK life assurance company. Since the policyholder tax charge is unrelated to
before tax attributable to shareholders' returns'. the performance of the business, we believe it is also useful to separately
identify the profit before shareholder tax, which reflects the IFRS profit
before tax, adjusted only for tax paid on behalf of policyholders.
Controllable expenses The total of expenses which reflects establishment, development, and our We are focused on managing long-term growth in controllable expenses. Full details of the breakdown of
Academy.
expenses is provided in the databook
sjp.co.uk/half-year-results-2025-databook
(https://sjpwealth.sharepoint.com/sites/finance/fa/annualreport/sjp.co.uk/half-year-results-2025-databook)
.
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