REG - St. James's Place - Final Results
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RNS Number : 2457U St. James's Place PLC 25 February 2026
PRESS RELEASE
25 February 2026
A YEAR OF STRONG DELIVERY AND EXECUTION
St. James's Place plc (SJP) today issues its results for the year ended 31
December 2025:
Mark FitzPatrick, Chief Executive Officer, commented:
"I am pleased to report a year of significant progress for St. James's Place.
We delivered growth in new business, growth in funds under management, and
growth in the Underlying cash result, while at the same time delivering strong
returns for our growing number of clients. We have also executed against our
key priorities as we position for the future. This included successfully
implementing our new simple, comparable charging structure, progressing our
historic ongoing service evidence review, and advancing our cost and
efficiency programme.
Our achievements in 2025 underscore the enduring need and demand for trusted
financial advice. They also demonstrate the strength of our unique Partnership
model, which offers clients the best of both worlds: personal advice delivered
through long‑term, local relationships, backed by the scale, expertise and
brand of the UK's leading financial advice business. We're building on this
foundation by investing further in our capabilities, including enhancing the
technology and tools available to our advisers. The goal is simple: to free
our advisers to focus on what they do best - building trusted relationships
and delivering truly invaluable advice.
The combination of another strong financial outcome together with good
operational and strategic progress, has enabled the Board to update our
shareholder returns guidance a year earlier than originally planned. Going
forward, we intend to increase total annual shareholder distributions to 70%
of the Underlying cash result through a combination of dividends and share
buy-backs.
We look to the future with confidence. While the external consumer outlook
remains uncertain, the changes we have already made to our business, combined
with our focus to strengthen and grow SJP over the long-term, mean we are well
positioned to capture the structural market opportunity ahead and deliver for
all our stakeholders in 2026 and beyond."
Financial highlights
· Post-tax Underlying cash result of £462.3 million (2024: £447.2
million), up 3% year on year
· Post-tax Underlying cash basic earnings per share of 87.0 pence
(2024: 82.0 pence), up 6% year on year
· IFRS profit after tax of £531.4 million (2024: £398.4 million),
up 33% year on year
Operational highlights
· Strong growth in both gross and net inflows; record closing FUM
of £220.0 billion
· Simple, comparable charging structure successfully implemented
· Cost and efficiency programme on track with guidance
· Historic ongoing service evidence (OSE) review progressing at
pace; £18.7 million post-tax additional release from OSE provision at
year-end, bringing the total released during 2025 to £82.1 million.
Anticipate programme completion during 2026
· Launch of new Polaris Multi-Index range of funds, broadening the
range of investments available for our 1,037,000 clients.
Shareholder returns
· Total ordinary returns to shareholders of £231.2 million,
representing 50% of the Underlying cash result. Comprising:
o Dividends: proposed final dividend for 2025 of 12.00 pence per share
(2024: 12.00 pence per share); total dividend for 2025 of 18.00 pence per
share (2024: 18.00 pence per share)
o Share buy-backs: final share buy-backs for 2025 of £103.9 million (2024:
£92.6 million); total share buy-backs in respect of 2025 of £136.0 million
(2024: £125.5 million)
· An additional £63.4 million already returned through share
buy-backs following the release from our OSE provision announced at the time
of our 2025 half-year results last July
· A further £18.7 million will be returned via share buy-backs,
alongside our £103.9 million programme for final share buy-backs for 2025,
reflecting the value of an additional post-tax OSE provision release at
year-end
· Total shareholder returns for 2025 financial year of £313.3(1)
million (2024: £222.7 million).
Future shareholder returns
· Acceleration of future approach: for financial year 2026 and
beyond, the Board intends to set total annual shareholder returns at 70% of
the Underlying cash result. This will comprise:
o Ordinary dividends, which we expect will make up at least 40% of total
shareholder returns (equivalent to at least 28% of the Underlying cash result)
o Share buy-backs
· Revised approach reflects combination of continued strong
financial, operational and strategic progress, together with confidence in our
prospects
· Board intends to pay an interim dividend and conduct an interim
share buy-back following half-year 2026 results. We anticipate:
o the interim dividend will be 6.00 pence per share; and,
o the interim buy-back will be a third of the 2025 total ordinary buy-backs,
excluding those relating to releases from our OSE provision.
(1) Based on the number of shares at 31 December 2025.
The details of the announcement are attached.
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)
2025 Full Year Results Presentation
Date: 25 February 2026
Webcast available on-demand from: 07:00 GMT
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Chair's report
Focused on delivery, aligned with our objectives and purpose
We have made good progress in 2025, repositioning the business to maximise
the significant opportunity in the wealth management market.
Our key focus has been on delivery of the change programmes we outlined last
year. The Board's oversight has been important in ensuring alignment with the
Group's objectives and stated purpose and making sure we performed well for
our stakeholders.
Our refreshed Executive team has completed significant programmes of work,
including the successful implementation of our simple, comparable charging
structure and our organisational redesign. These and other projects have
been completed whilst maintaining sound underlying business performance that
demonstrates the power of our proposition and the need for financial
advice.
The Board and governance
Helen Beck and Penny James joined the Board during 2025, succeeding the chairs
of the Group Remuneration and Risk Committees respectively. Both have brought
experience and diverse perspectives to the Board, gained during their
extensive executive and non-executive careers. We have also seen
the membership of the Group Executive Committee refreshed in the last 18
months. The Board has welcomed the new executives and will be closely
overseeing both their performance and the establishment of future succession
plans to ensure we build a strong pipeline of potential future executives.
Rosemary Hilary retired from the Board at the end of 2025, and I would like
to express the Board's gratitude for her important contribution over the last
few years. I am delighted to also welcome Evelyn Bourke, who will be joining
the Board on 1 March 2026. More detail on succession planning and the
appointment process can be found in the report of the Group Nomination and
Governance Committee.
The Board believes that a healthy culture, underpinned by good governance, is
essential if SJP is to deliver the right outcomes for stakeholders. Good
governance is the Board's responsibility. We want to ensure a
performance-oriented culture, but also one that involves transparency and
accountability throughout the business. During 2025, the Board has
strengthened our governance framework by establishing clearer rules and
guidelines, and supporting employees to understand and embrace the benefits
of effective governance.
The Board's priorities and our strategy
There have been significant government and regulatory interventions in 2025
to improve consumer access to retail investing opportunities, and many of
these developments will start to be delivered publicly from 2026. The Board
believes that SJP has an important role to play as the leading wealth manager
in the UK and we have proactively engaged in programmes of work such as the
Advice Guidance Boundary Review, reform of risk warnings, and the UK Retail
Investment Campaign. We are determined that even those who do not receive or
cannot afford financial advice should be helped to make better financial
decisions, which will see them become more financially resilient. However, we
still see a significant opportunity for more people to receive financial
advice to help them navigate a complex world and plan for their financial
futures.
We believe that the refreshed strategy we outlined last year will enable us to
strengthen our support to advisers and existing clients, as well as helping us
reach more people in need of advice. Overseeing the delivery of that strategy,
as we move from the 'Strengthen' to the 'Amplify' phase, remains a key
priority and focus of the Board. See our 'Strategy at a glance' summary on
page 15 of the St. James's Place plc Annual Report and Accounts 2025 for
further detail.
How we lead, govern and incentivise our people directly impacts and influences
outcomes for our stakeholders, most notably clients. Alongside the enhancement
of our governance framework there has been considerable focus on our people.
Listening carefully to colleagues helps us gain a deeper understanding of
their working experience, influencing our approach to areas such as diversity,
equity and inclusion. The perception is often that the financial services
sector lacks diversity. We know there is much still to do, but the make-ups
of our Board and executive team now better reflect our workforce, the
Partnership and our client base.
Shareholder returns
Shareholder returns proposed by the Board for 2025 are in line with our
current guidance that the ordinary shareholder payout will be set at 50% of
the full-year Underlying cash result. Alongside ordinary shareholder returns
we are returning amounts released from our Ongoing Service Evidence provision
during the year.
In addition, I'm pleased that the Board has been able to update our
shareholder returns guidance for the 2026 financial year and beyond, a year
earlier than originally planned. From 2026, the Board intends to return 70% of
the full-year Underlying cash result to shareholders.
Full details of shareholder returns for 2025, 2026 and beyond, can be found in
the Chief Financial Officer's report.
Concluding remarks
I would like to express my thanks to the Board and management for their
continued support and hard work during 2025. On behalf of the Board, I would
also like to express gratitude to our advisers and employees for their
continued strong performance. Although I have touched upon some of the key
areas of the Board's activity in 2025 above, I would also encourage you to
read the corporate governance report, which provides more detail. I look
forward to welcoming shareholders to this year's Annual General Meeting, which
will be held in Cirencester on 30 April 2026.
Paul Manduca
Chair
24 February 2026
Chief Executive Officer's report
2025 has been a year of strong delivery and execution and we look to the
future with confidence
2025 was a year defined by delivery. We entered the year with clear priorities
and the conviction to keep driving good outcomes for the more than one million
clients who rely on our advice. We exit the year stronger having delivered
growth in new business and funds under management (FUM) alongside making
strategic progress. We are well positioned to further our leadership as the
home of financial advice.
Macroeconomic backdrop
2025 offered a more stable backdrop for UK consumers, though challenges
persisted. Interest rates began to move lower, creating a more supportive
environment for long-term planning. Equity markets reached all-time highs, but
volatility remained, influenced by global trade tensions and uncertainty
around UK fiscal policy. With household budgets still under pressure from
elevated living costs and the economic outlook uncertain, consumer confidence
has been fragile. In this environment, many individuals sought reassurance and
clarity through professional financial advice, reinforcing the value of
trusted relationships and disciplined financial planning.
Operating performance
We achieved strong operating performance in 2025. Gross inflows of £21.9
billion were 19% higher than 2024, reflecting strong underlying demand for
financial advice and a healthy level of engagement between our advisers and
clients. Retention improved to 94.9%, despite being impacted in the latter
part of the year by heightened short-term withdrawals linked to pre-Budget
speculation around pensions tax-free cash allowances. Net inflows were £6.2
billion for the year, representing 3.2% of opening FUM.
Investment outcomes
Our investment approach continued to deliver for clients. In 2025, performance
across our range of funds represented an investment return of 12% of opening
FUM net of all charges.
High valuations and concentration risk, especially in the US market, were a
concern for our Investment team in 2025 and they remain so heading into 2026.
Through the past year, valuations led to significant differences in
performance between regions. Because of these differences, active management
became especially valuable and our investment team found good opportunities in
places offering better relative value such as Japan, the UK, emerging markets,
and Europe.
The past year marked the third anniversary of our flagship £94 billion
Polaris range, which is a great example of our capability to deliver at scale.
From their launch to the end of 2025 the four risk-rated funds (1-4) have
delivered annualised returns of 8%, 10%, 12% and 14%, respectively, net of
fund charges. We're delighted at the positive impact these funds, which are
exclusively available to SJP clients, have had on clients' financial
wellbeing.
Financial performance
A strong year for operating and investment performance was mirrored by strong
financial results. Our Underlying cash result of £462.3 million was 3% higher
than we achieved in 2024, reflecting growth in FUM and new business alongside
disciplined cost control, partly offset by the short-term impact of moving to
our new charging structure.
The Board is pleased that the combination of another strong financial outcome
together with good operational and strategic progress, has enabled us to
update shareholder returns guidance a year earlier than originally planned.
For financial year 2026 and beyond, we intend to increase total annual
shareholder distributions to 70% of the Underlying cash result. This is
expected to comprise both ordinary dividends and share buy-backs. More
information is set out in the Chief Financial Officer's (CFO's) report.
Championing financial advice
Many UK consumers are not taking enough investment risk or setting aside
enough for a comfortable retirement, and nor are they receiving the
professional advice that would support them with their finances. To put this
into some context, Barclays estimates that there is £614 billion of excess
cash held by UK individuals while Scottish Widows estimates that 39% of people
are not on track for a comfortable retirement. Yet only 9% of adults in the UK
are taking financial advice today. These issues are widely recognised by the
government, regulators and the wealth management industry. Helping people to
invest and grow their finances, represents a major opportunity for our
industry. As the clear market leader, we have the scale, expertise, experience
and trusted brand to lead real, positive change for the UK.
We are passionate advocates for holistic financial advice and the wide-ranging
benefits it brings, although we recognise that it is not available or
appropriate for all. As a result, we support other initiatives which aim to
help consumers make better financial decisions. We have constructively engaged
in consultations and industry discussions on the targeted support measures
within the FCA's Advice Guidance Boundary Review, and we are pleased to be
part of the Investment Association-led UK Retail Investment Campaign, which
aims to get consumers' money working harder by promoting the benefits of
retail investing.
We are also continuing to use our voice to share proprietary insights through
our Real Life Advice and Financial Health reports. These help us drive
positive debate around personal finances, and the range of invaluable
solutions available to people today.
Strategic delivery - strengthening our fundamentals
When I first set out our refreshed strategy in July 2024, I committed to make
SJP simpler, more efficient, and more transparent. This was about first
strengthening our fundamentals so that we could amplify our growth ambitions
from 2027 onwards. I am pleased to report that we made substantial progress
in 2025.
1. Delivering our new charging structure
Our simple, comparable charging structure went live from 26 August 2025. This
was a significant change that was carefully planned and successfully executed.
We now operate with a charging structure that makes it easier for clients to
understand our charges and assess value across our holistic proposition. We're
very pleased with how our business and advisers have adapted to this new
structure, and we're excited by the long-term opportunity it brings as we
attract new advisers and clients to the business.
2. Delivering cost efficiencies and our Ongoing Service Evidence (OSE)
programme
We progressed our multi-year programme to reshape our cost base for the future
and remain on track to remove around £100 million from addressable costs by
2027. During 2025, we completed the implementation of a new organisational
design, reduced our property footprint and began optimising our commercial
relationships with suppliers. This has enabled SJP to become more efficient
and better structured to deliver on our growth ambitions, alongside creating
capacity to significantly increase investment spend.
During 2025 we also made good progress with our OSE programme, which has
resulted in two releases from the associated provision - full details are set
out in the CFO's report. With the business deep into the operational phase of
this complex project, we remain confident that we will complete the exercise
in 2026.
3. Delivering a broader investment shelf
We capitalised on our new charging structure being in place by launching the
Polaris Multi-Index range of funds in October. This range of lower-cost
multi-asset funds of funds implements our active asset allocation expertise
through index-tracking funds. They complement our existing range of solutions,
enhancing choice for clients across risk profiles, and have been well received
by advisers and clients. FUM in Polaris Multi-Index surpassed the £1 billion
mark by the end of the year, only two months after launch. By broadening our
investment product shelf we're helping advisers in their conversations with
existing and potential clients, deepening the positive impact they can have.
2026 priorities
As we look ahead, our focus in 2026 is on continuing to strengthen our
fundamentals so we are ready to execute the next phase of our strategy with
pace and confidence. This means completing our major transformation
programmes, continuing to simplify and standardise our processes, improving
administration and embedding more automation. This will improve client
experiences and enhance efficiency for our advisers. We will also embed a more
performance-focused culture.
Ensuring we continue to provide a leading adviser offering, with advisers able
to build bigger, better businesses within the SJP Partnership than outside of
it will be a key focus. We will be evolving the range of support we offer our
4,934 advisers by extending our investment into trialling additional
technology tools designed to streamline processes, reduce administrative
burden, and boost day‑to‑day efficiency.
We already have a range of AI-enabled and digital tools which we've introduced
or piloted. These include tools which respond to questions on our advice
framework and business submission processes. We are also rolling out tools to
capture client-adviser conversations and turn them into structured and
compliant ready-to-use reports. In 2026 we will continue to build on this
range. The goal is simple: to free up more time for advisers to focus on what
they do best - building trust, deepening client relationships, and delivering
personalised, high‑quality advice. This will improve the great service they
already provide to clients and enable them to reach more clients, growing
their businesses and growing our business. We see technology strengthening the
human relationships between clients and advisers, not replacing them.
We have a really privileged position here. As the market leader, we have the
scale and capability to work alongside leading global technology vendors as we
leverage their expertise. We are combining this with the practical, end-user
focused insight that only we can get from working day in, day out with nearly
five thousand advisers across the UK.
While the 'Amplify' phase of our strategy formally begins from 2027, we will
selectively accelerate elements of this work where we have capacity. In 2026,
this includes refreshing our cash proposition for clients and enhancing our
high-net-worth proposition to offer a dedicated, bespoke service to clients in
that space.
Summary and outlook
2025 was a year of significant progress for SJP. We strengthened and improved
our business for the future and delivered growth in new business, growth in
FUM, and growth in the Underlying cash result. At the same time we delivered
strong returns for our clients.
Our achievements in 2025 are a testament to the enduring and growing need for
what we provide - trusted financial advice - delivered through our unique
Partnership model. They are also testament to the unwavering effort and
commitment of everyone in the SJP community, to deliver for clients and
position the business for continued success.
We look to the future with confidence. While the external consumer outlook
remains uncertain, the changes we have already made to our business, combined
with our focus to strengthen and grow SJP over the long term, means we are
well positioned to capture the structural market opportunity ahead and deliver
for all our stakeholders in 2026 and beyond.
Mark FitzPatrick
Chief Executive Officer
24 February 2026
Chief Financial Officer's report
We've had a successful year and move forward with increased shareholder
returns guidance
I am pleased to present our financials, with strong investment performance and
growth in new business contributing to an improvement in our financial results
for 2025.
Financial business model
Our financial business model is simple. When clients choose to invest with us
our 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.
In late August we implemented our new simple, comparable charging structure,
which was an important change for the business and its financial model. Under
this structure we benefit from all charges applying from the day that a new
investment is made, and we earn a margin on each aspect of the holistic
service we provide to clients: financial advice, products and fund management.
This differs from our previous charging structure, where our primary profit
driver was ongoing product charges. Most of our investment bond and pension
business did not incur these charges for the first six years after an
investment was 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 ongoing product charges for
the first time.
Gestation FUM remains an important concept, as all business in gestation at
the point of implementing our new charging structure remains on the previous
charging structure until it matures six years after initial investment.
However, no new business is added to the gestation FUM balance under our new
charging structure.
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. In the short
term, the transition between charging structures causes a dip in
profitability, due to lower initial and ongoing margins under our new
structure. We experienced this post implementation in 2025, and also
anticipate it for 2026 given this is the first full year under our
new structure.
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 2025
Our FUM grew by 16% over the year to a record £220.0 billion. This increase
in FUM has driven an increase in the income we receive from it. Paired with
continued discipline in managing our costs and growth in new business, this
has enabled us to deliver IFRS profit after tax of £531.4 million
(2024: £398.4 million), and a post-tax Underlying cash result of £462.3
million (2024: £447.2 million). These key financial performance metrics are
up 33% and 3% year on year respectively, despite over four months of the year
being on our new charging structure which attracts lower margins. The most
significant difference between these two metrics is that releases from our
Ongoing Service Evidence provision, which I cover in more detail shortly, are
included in IFRS profit after tax but excluded from the Underlying cash
result.
Simple, comparable charges
The implementation costs for our new charging structure were £52.7 million
post tax in 2025 (2024: £59.5 million), bringing the overall implementation
costs incurred across the duration of the project to £119.4 million post-tax.
This is in line with guidance that we expected costs to come in towards the
upper end of our original guidance range of £105 to £120 million post tax.
No further charge structure implementation costs will be incurred in 2026.
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, the experience we
gathered in the second half of the year means the Ongoing Service Evidence
provision stood at £272.3 million at 31 December 2025 (31 December 2024:
£425.1 million), and we have released a further £25.0 million from the
provision on a pre-tax basis, in addition to the £84.5 million we released in
the first half of the year.
This brings the total released from the provision during the year to £109.5
million (2024: £nil). Further information can be found in Note 9 to the IFRS
financial statements.
In the post-tax Cash result, the release in the second half of the year
equates to £18.7 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.
We followed the same approach for the £63.4 million post-tax release in the
first half of the year, with that buy-back completing in October 2025.
Cost and efficiency programme
A key area of focus during the year has been our cost and efficiency
programme. We have an ambition to take 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 with the programme. During the year we completed
our transition to a new organisational design to ensure we have the right
people in the right places to align to our strategy and drive growth. We also
took important steps in optimising our commercial relationships with suppliers
and rationalising our property footprint.
As anticipated, for 2025 the cost and efficiency programme had no material
impact on our financial results, as the cost savings we realised were broadly
equal to the cost to achieve those savings and reinvestment spend. We remain
on track to deliver the programme by 2027.
Financial position and liquidity
Our IFRS consolidated statement of financial position contains policyholder
assets and liabilities. To understand the assets and liabilities that
shareholders can benefit from, these policyholder balances, along with
balances such as deferred income (DIR) and deferred acquisition costs (DAC),
are removed in our Solvency II Net Assets Balance Sheet. This balance sheet
is straightforward, and is analysed in section 2.2 of the financial review.
As part of our work to simplify our financial reporting I committed to more
clearly articulating our liquidity position, given liquidity is more relevant
than capital in our ability to provide shareholder returns. To make this
clearer we have introduced new liquidity disclosures in section 3 of the
financial review. These demonstrate that we have total free liquidity held at
Group centre of £271.4 million at 31 December 2025 (31 December 2024:
£148.1 million), and that we have strengthened our balance sheet over the
past year. This was the next step in getting the balance sheet into the
position I wanted it to be in, after I put an end to regular usage of our
revolving credit facility, and repaid our bridging loan.
I am comfortable holding this level of free liquidity at Group centre as it
provides a layer of prudence and flexibility in how we run the business. We
will regularly review the amount of free liquidity we hold to ensure we
continue to optimise our capital allocation priorities in line with our
capital allocation framework.
These new disclosures are the next step in simplifying our financial reporting
and making our financial results easier to understand. We will complete this
work by evolving how we report our financial performance, which we plan to do
for the half-year 2026 results. We will provide full details of this in the
first half of the year.
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 manage capital allocation as
critical to ensuring we have a well-invested business that drives returns and
creates sustained value for shareholders.
Shareholder returns for 2025
In line with our current shareholder returns guidance, the Board expects to
return 50% of the Underlying cash result to shareholders for 2025. This
equates to £231.2 million and is made up of 18.00 pence per share in
dividends, with the balance returned through share buy-backs.
The components of this £231.2 million return, and the additional shareholder
returns as we buyback shares using the amounts released from the Ongoing
Service Evidence (OSE) provision during the year, are set out below.
2025 2024
£'Million £'Million
Ordinary shareholder returns
Interim dividend (6 pence per share) 31.9 32.8
Interim buy-back 32.1 32.9
Final dividend (12 pence per share)(1) 63.3 64.4
Final buy-back 103.9 92.6
Total ordinary returns(1) 231.2 222.7
Other shareholder returns
Release from OSE provision at HY25 63.4 -
Release from OSE provision at FY25 18.7 -
Total other returns 82.1 -
Total shareholder returns(1) 313.3 222.7
(1) 2025 figure based on the number of shares at 31 December 2025.
The total buy-back to commence in March 2026 will be for £122.6 million,
comprising the final buy-back for 2025 of £103.9 million and the £18.7
million release from the OSE provision. The £63.4 million released from the
OSE provision at half year has already been returned to shareholders via
buy-backs in the second half of 2025, alongside the interim buy-back of
£32.1 million.
Shareholder returns for 2026 and beyond
I'm delighted that the combination of a strong financial outcome for 2025,
together with good operational and strategic progress, has enabled the Board
to update our shareholder returns guidance a year earlier than originally
planned.
For the 2026 financial year and beyond, the Board intends to return 70% of the
Underlying cash result to shareholders. This will comprise:
· an ordinary dividend, which we expect will make up at least 40%
of total shareholder returns. This is equivalent to at least 28% of the
Underlying cash result; and
· a share buy-back for the balance, subject to the Board's ongoing
assessment of the most appropriate mechanism for that return.
The Board intends to pay an interim dividend and conduct an interim share
buy-back following our Half Year 2026 results. These will be set at a third
of the prior full-year balance for ordinary shareholder returns, excluding
buy-backs relating to releases from our OSE provision.
Summary
We have had a successful year with strong investment performance and growth in
new business contributing to an improvement in our financial results. We have
strengthened the balance sheet whilst also returning a total of
£313.3(1) million to shareholders in respect of the year. We will be moving
forward with an increased 70% payout ratio for ordinary shareholder returns
for the 2026 financial year and beyond.
Caroline Waddington
Chief Financial Officer
24 February 2026
(1) Based on the number of shares at 31 December 2025.
Summary financial information
Year ended Year ended
31 December 31 December
2025 2024
FUM-based metrics
Gross inflows (£'Billion) 21.9 18.4
Net inflows (£'Billion) 6.2 4.3
Total FUM (£'Billion) 220.0 190.2
Total FUM in gestation (£'Billion) 52.9 50.1
IFRS-based metrics
IFRS profit after tax (£'Million) 531.4 398.4
IFRS profit before shareholder tax (£'Million) 696.7 535.9
IFRS basic earnings per share (EPS) (Pence) 99.9 73.0
IFRS diluted EPS (Pence) 98.8 72.6
Dividend per share (Pence) 18.00 18.00
Cash result-based metrics
Controllable expenses (£'Million) 305.8 291.7
Underlying cash result (£'Million) 462.3 447.2
Cash result (£'Million) 544.4 447.2
Underlying cash result basic EPS (Pence) 87.0 82.0
Underlying cash result diluted EPS (Pence) 86.0 81.5
Liquidity-based metric
Free liquidity held at Group centre (£'Million) 271.4 148.1
EEV-based metric(1)
EEV net asset value per share (£) 19.84 16.25
(1) We report further information on the European Embedded Value (EEV) basis
within the databook on our website sjp.co.uk/full-year-results-2025-databook
(http://www.sjp.co.uk/full-year-results-2025-databook) .
The Cash result should not be confused with the IFRS 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
2.2 Cash result
Section 3 - Capital and liquidity
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 2025 our advisers attracted £21.9 billion (2024: £18.4 billion) of
new client investments and client retention rates remained strong at 94.9%
(2024: 94.5%). As a result we generated £6.2 billion (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 investment return, net of all charges, representing 12% of opening FUM
(2024: 11%). This, together with net inflows, resulted in FUM increasing by
16% to £220.0 billion (2024: £190.2 billion).
The following table shows how FUM evolved during 2025 and 2024. Investment
return is presented net of all charges.
2025 2024
Investment bond Pension UT/ISA and DFM Total Total
£'Billion £'Billion £'Billion £'Billion £'Billion
Opening FUM 39.18 101.98 49.05 190.21 168.20
Gross inflows 3.02 13.86 5.00 21.88 18.41
Net investment return 4.38 13.47 5.79 23.64 17.68
Regular income withdrawals and maturities (0.33) (4.88) - (5.21) (4.28)
Surrenders and part-surrenders (2.13) (4.49) (3.89) (10.51) (9.80)
Closing FUM 44.12 119.94 55.95 220.01 190.21
Net flows 0.56 4.49 1.11 6.16 4.33
Implied surrender rate as a percentage of average FUM 5.1% 4.0% 7.4% 5.1% 5.5%
Included in the table above is:
· Discretionary Fund Management (DFM) FUM of £3.70 billion at 31
December 2025 (31 December 2024: £3.49 billion).
· SJP AME (Asia & Middle East) FUM of £2.28 billion at 31
December 2025 (31 December 2024: £1.90 billion).
The following table provides a geographical and investment-type analysis of
FUM at 31 December.
31 December 2025 31 December 2024
£'Billion Percentage £'Billion Percentage
of total of total
North American equities 83.6 38% 74.9 39%
Fixed income securities 36.8 17% 31.6 17%
European equities 31.0 14% 24.3 13%
Asia and Pacific equities 30.1 14% 24.0 13%
UK equities 19.6 9% 16.0 8%
Cash 9.7 4% 6.9 4%
Other 4.5 2% 5.0 2%
Alternative investments 4.2 2% 6.2 3%
Property 0.5 0% 1.3 1%
Total 220.0 100% 190.2 100%
1.2 Gestation
As explained in our financial business model in the Chief Financial Officer's
report, due to our previous charging structure, for most investment bond and
pension business there is a significant amount of FUM in 'gestation'. This
means it is not subject to ongoing product charges, which were our key profit
driver under the previous structure. FUM rolls out of gestation into 'mature'
FUM six years after initial investment, at which point it transitions to our
new charging structure and becomes subject to the full range of charges.
Approximately 39% of gross inflows for 2025, after initial charges, moved into
gestation FUM (2024: 54%). All of this relates to new business written on our
previous charging structure. No new business is added to the gestation FUM
balance under our new charging structure.
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 returns 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
31 December 2025 167.1 52.9 220.0
31 December 2024 140.1 50.1 190.2
As no new business is added to the gestation FUM balance under our new
charging structure, the balance will reduce to nil over the next six years as
the existing gestation FUM matures. 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 around £300 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.
Actual emergence in the Cash result reflects the new charging structure, and
will reflect the varying business mix of each cohort and business experience.
Year Cumulative gestation FUM maturity profile Gestation FUM future contribution to the post-tax Cash result
£'Billion £'Million
2026 6.7 38.1
2027 14.6 83.7
2028 24.2 138.4
2029 33.8 193.6
2030 43.9 251.3
2031 52.9 303.1
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 complex 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.
APMs are not defined by the relevant financial reporting framework (which for
the Group is IFRS), but we use them to provide greater insight into the
financial performance, financial position and cash flows of the Group and the
way the Group is managed. The glossary of APMs included within this Annual
Report and Accounts defines each APM used in our financial review, explains
why it is used and, if applicable, details how the measure can be reconciled
to the IFRS 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
Our IFRS 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 tax 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:
Year ended 31 December 2025 Year ended
31 December 2024
£'Million £'Million
IFRS profit before tax 1,335.2 1,049.1
Policyholder tax (638.5) (513.2)
IFRS profit before shareholder tax 696.7 535.9
Shareholder tax (165.3) (137.5)
IFRS profit after tax 531.4 398.4
IFRS profit before shareholder tax improved year-on-year, reflecting
underlying business performance and the £109.5 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 years. In 2025 the impact
was negative £35.4 million (2024: negative £38.9 million). External market
conditions during the year 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, equity-settled
share-based payment costs and certain non-cash items, such as DAC, DIR and
deferred tax. The reconciliation of the Cash result to IFRS can be found on
page 211 of the St. James's Place plc Annual Report and Accounts 2025 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 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)
Note Year ended 31 December 2025 Year ended 31 December 2024
In-force New Total Total
business
£'Million £'Million £'Million £'Million
Net annual management fee 1 1,023.6 147.3 1,170.9 1,108.7
Reduction in fees in gestation period 1 (445.7) - (445.7) (425.1)
Net income from FUM 1 577.9 147.3 725.2 683.6
Margin arising from new business 2 - 99.5 99.5 117.4
Controllable expenses 3 (29.9) (275.9) (305.8) (291.7)
AME - net investment 4 - (7.6) (7.6) (10.2)
DFM - net investment 4 - (4.1) (4.1) (2.4)
Regulatory fees and FSCS levy 5 (2.6) (23.8) (26.4) (21.5)
Shareholder interest 6 68.5 - 68.5 66.0
Charge structure implementation costs 7 - (52.7) (52.7) (59.5)
Miscellaneous 8 (34.3) - (34.3) (34.5)
Underlying cash result 579.6 (117.3) 462.3 447.2
Ongoing Service Evidence provision 9 82.1 - 82.1 -
Cash result 661.7 (117.3) 544.4 447.2
The Underlying cash result of £462.3 million for 2025 (2024: £447.2 million)
is 3% higher than the prior year. This is driven by the increase in income
received from growing levels of FUM, despite over four months of the year
being on our new charging structure which attracts lower margin, 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/full-year-results-2025-databook
(http://www.sjp.co.uk/full-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, under our previous charging structure after the margin arising from
new business, most investment bond and pension business did not contribute to
the net Cash result for 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 2025, our net income from FUM was £725.2 million (2024: £683.6 million),
an increase of 6%. This is driven by a 15% increase in average mature FUM year
on year, partially offset by the step down in margin we earn on FUM under our
new charging structure which was in place from 26 August 2025. The outcome is
within our guided margin range of 0.54% to 0.56% of mature FUM, excluding DFM
and AME FUM, for the portion of the year under our previous charging
structure, and 0.43% to 0.45% for the portion of the year under our new
charging structure.
Whilst the net income from FUM margin on mature FUM is lower under our new
charging structure, the proportion of our FUM which is mature will increase
over time because:
a) ongoing charges now apply to all new business from the day that a new
investment is made. This means that new investment bond and pension business
is part of mature FUM from day one; and
b) the remaining gestation FUM at the point our new charging structure
was implemented will mature over the next six years, with no additional
associated expenses.
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 year, as initial charges
exceeded new business related expenses - such as payments to Partners and
third-party administration costs - under our previous charging structure.
Under our new charging structure, initial product charges have been removed
and initial advice charges broadly offset new business-related expenses. As a
result, the margin arising from new business in 2025 is driven by business
written on our previous charging structure. We expect it to be approximately
zero for 2026 and beyond.
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 5% year-on-year, in line with
guidance. We anticipate 5% year-on-year growth for 2026.
As expected, for the year ended 31 December 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
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 and
our business there is growing, resulting in lower net investment year-on-year.
DFM has experienced increased costs during the year driven by an
organisational design programme, which 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:
Year ended 31 December 2025 Year ended 31 December 2024
£'Million £'Million
FSCS levy 12.1 9.1
Regulatory fees 14.3 12.4
Regulatory fees and FSCS levy 26.4 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
for 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 2025 were £52.7 million (2024: £59.5 million), bringing total
costs for this multi-year project to £119.4 million. There are no further
charge structure implementation costs to come in 2026.
8. Miscellaneous
This category represents the financial impact of all items not covered in any
of the other categories. It includes items such as 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
In the first half of the year we revised our historic ongoing service evidence
review redress methodology. This revision, and experience from the project in
the first half, led to a £63.4 million release from the provision on a
post-tax basis at half year. We released a further £18.7 million post-tax at
year-end, reflecting experience from the project in the second half of the
year. More information, with numbers presented on a pre-tax basis as required
by IFRS, can be found in Note 9 within the IFRS consolidated financial
statements.
Solvency II Net Assets Balance Sheet
To better understand the assets and liabilities that shareholders can benefit
from, the IFRS consolidated statement of financial position is adjusted to
remove policyholder assets and liabilities, and non-cash 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 consolidated statement of financial position to
the Solvency II Net Assets Balance Sheet at 31 December 2025 can be found in
the supplementary information section of the St. James's Place Annual Report
and Accounts 2025.
As at 31 December 2025 As at 31 December 2024
Note £'Million £'Million
Assets
Property and equipment 122.3 134.0
Deferred tax assets 0.2 0.1
Investment in associates 24.0 21.9
Reinsurance assets 8.8 10.7
Other receivables a 1,987.3 1,867.4
Financial investments b 2,414.0 2,202.9
Cash and cash equivalents b 329.6 352.6
Total assets 4,886.2 4,589.6
Liabilities
Borrowings 341.5 516.8
Deferred tax liabilities 980.0 690.1
Insurance contract liabilities 18.4 14.3
Other provisions 298.4 460.3
Other payables 1,610.9 1,445.4
Income tax liabilities 25.9 22.1
Total liabilities 3,275.1 3,149.0
Net assets 1,611.1 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 7 Other
receivables within the IFRS 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 £228.1 million at 31 December 2025
(2024: £256.3 million). During the year, we extended our contract with our
back-office infrastructure provider. The operational readiness prepayment
amortises through the consolidated statement of comprehensive income over
the remaining contract period, which at 31 December 2025 was c.9 years
(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 a number
of 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 prudent business valuations. Demonstrating this, loan-to-value
(LTV) information is set out in the following table.
31 December 2025 31 December 2024
Weighted average LTV across the total Partner lending book 35% 39%
Proportion of the book where LTV is over 75% 3% 5%
Net exposure to loans where LTV is over 100% (£'Million) 5.6 7.2
If FUM were to decrease by 10%, the net exposure to loans where LTV is over
100% at 31 December 2025 would increase to £6.4 million (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 year we have continued to facilitate business loans to Partners.
Further information is provided in Note 7 Other receivables and Note 10
Borrowings and financial commitments.
31 December 2025 31 December 2024
£'Million £'Million
Total business loans to Partners 639.9 557.3
Split by funding type:
Business loans to Partners directly funded by the Group 370.1 386.6
Securitised business loans to Partners 269.8 170.7
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 last of these is classified as cash and cash equivalents on
the Solvency II Net Assets Balance Sheet. The total liquid assets held are as
follows:
31 December 2025 31 December 2024
£'Million £'Million
Fixed interest securities 10.3 8.6
Investment in Collective Investment Schemes (AAA-rated money market funds) 2,403.7 2,194.3
Financial investments 2,414.0 2,202.9
Cash and cash equivalents 329.6 352.6
Total liquid assets 2,743.6 2,555.5
The Group's primary source of cash generation is ongoing 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 - Capital and liquidity
A cornerstone of our business model and risk appetite is that we hold assets
to fully match our liabilities to clients. Our clients can access their
investments on demand and because the value of their investment is matched,
movements in factors such as equity markets have very little impact on our
ability to meet liabilities.
We also have a prudent approach to investing cash generated by the business in
cash and cash equivalents, AAA-rated money market funds and highly rated
government securities. The overall effect is a resilient capital position
capable of meeting liabilities even during adverse market conditions, and
means that our business is capital-light.
As a Group containing insurance entities we are required to report under the
Solvency II capital regime, and full information about our Solvency II capital
position can be found in Note 22 to the IFRS financial statements in the St.
James's Place plc Annual Report and Accounts 2025. However, it is liquidity
rather than Solvency II which is the more relevant factor in our capital
allocation decisions, and so we focus on liquidity in this section.
At 31 December 2025 we had £2,743.6 million of total liquid assets on the
shareholder balance sheet, as presented in the table to the left. Much of
these are assets held to cover specific items needed to run the business. The
following table sets out how much of the total liquid assets are held to cover
specific items. Liquidity which is not held to cover specific items is termed
'free liquidity held at Group centre'.
31 December 2025 31 December 2024
£'Million £'Million
Total liquid assets 2,743.6 2,555.5
Less amounts held for:
Working capital (734.2) (487.6)
Policyholder tax (692.1) (538.4)
Management capital coverage assessment (587.7) (548.4)
Ongoing Service Evidence provision (272.3) (425.1)
Bridging loan repayment - (250.0)
Shareholder returns communicated at year end (185.9) (157.9)
Total free liquidity held at Group centre 271.4 148.1
Liquid assets are required to support the working capital of the Group. It
primarily relates to cash received by the Group which is awaiting payment to
the appropriate third party.
Amounts held for policyholder tax are deductions we have taken from our funds
in order to satisfy policyholder tax charges which we settle with HMRC on
policyholders' behalf. This balance can vary significantly with markets, and
can require amounts to be paid back into our funds in the short term.
The management capital coverage assessment (previously known as the management
solvency buffer) is our assessment of the prudent amount we need to hold to
cover capital requirements in the regulated entities within the Group. We hold
this in liquid assets within our regulated entities.
We also hold liquid assets to cover our Ongoing Service Evidence provision. We
expect that our historic ongoing service evidence review, which gave rise to
this provision, will be completed during 2026.
The amount held for bridging loan repayment at 31 December 2024 covered the
repayment of this facility in February 2025, which was initially drawn when we
recognised the Ongoing Service Evidence provision.
Finally, we hold liquid assets to cover shareholder returns communicated at
year-end. This comprises the proposed 12 pence per share final dividend for
2025, which equates to £63.3 million, the £103.9 million final share
buy-back and the £18.7 million buy-back from the Ongoing Service Evidence
provision release at year-end.
Flows into and out of free liquidity held at Group centre over the year are
set out in the following table.
31 December 2025 31 December 2024
£'Million £'Million
Opening free liquidity at Group centre 148.1 79.1
Net remittances from subsidiaries for the financial year 548.5 515.5
Investment in business loans to Partners 16.5 (45.8)
Other (30.4) (72.7)
Liquidity generated from operations and investment 534.6 397.0
Movement in borrowings (12.7) (62.8)
Interest paid on external borrowings (24.0) (33.0)
Consideration paid for own shares (61.3) (9.5)
Net financing activities (98.0) (105.3)
Dividends for the financial year (95.2) (97.2)
Share buy-backs for the financial year (218.1) (125.5)
Shareholder returns (313.3) (222.7)
Closing free liquidity held at Group centre 271.4 148.1
Net remittances from subsidiaries for the financial year reflect dividends
from subsidiaries, less capital contributions required to support
subsidiaries, in respect of the financial year. Over time the net cash
remittances from subsidiaries will broadly reflect the profit-generating
capacity of the business, less the liquidity required to maintain strong
balance sheets within the operating subsidiaries, ensuring the safety of
client investments.
Investment in business loans to Partners is the net amount of investment from
our balance sheet to support our adviser growth and succession support scheme.
Other includes corporate expenses retained at the Group centre, which are
primarily project costs for the implementation of our new charging structure.
Consideration paid for own shares represents the cost of buying back
St. James's Place plc shares from the market to satisfy employee share-based
payment awards.
Dividends for the financial year represent the ordinary interim and final
dividends for the year. Share buy-backs for the financial year represent the
ordinary interim and final share buy-backs for the year, plus buy-backs for
any other purposes such as the releases from the Ongoing Service Evidence
provision during 2025.
More information about:
· movement in borrowings can be found in Note 10 to the IFRS
financial statements.
· interest and fees on borrowings can be found in Note 9 to the
IFRS financial statements in the St. James's Place plc Annual Report and
Accounts 2025.
Risk and control management
Conscious risk management
The Group's position as the UK's leading advice-led wealth manager is built on
a clear commitment to integrity, accountability, and the delivery of
long-term value for clients.
Core to this is a strong risk culture and a balanced approach to risk that
supports those commitments.
Risk culture
A strong risk-aware culture is fundamental to delivering good client outcomes,
achieving the Group's strategic objectives and sustaining long-term success.
Our approach promotes accountability, sound decision-making, and the
consideration of risk in all activities and at every level of the business.
To achieve good client outcomes and responsible growth, we embed risk
management within our strategic and operational processes, supporting
effective governance.
Risk framework and internal control
Our risk management framework and system of internal control are designed to
ensure that risks are identified, assessed, managed, and monitored within
defined appetites, and that appropriate oversight, assurance, and reporting
mechanisms are in place.
The internal control environment is founded on a clear organisational
structure and a culture that encourages risk ownership and accountability. The
first line of defence (business functions) is responsible for identifying and
managing risk in day-to-day operations. The second line (Risk and Compliance)
provides independent oversight and challenge, while the third line (Internal
Audit) delivers independent assurance on the effectiveness of governance, risk
management, and internal control.
The Board, through the Group Risk Committee and Group Audit Committee, has
overall responsibility for ensuring that there is an effective risk management
framework and that a robust internal control environment is maintained.
As part of our ongoing commitment to delivering and enhancing risk management
across the Group, our enterprise-wide risk management framework, taxonomy, and
appetite statements continue to be reviewed and enhanced. This supports the
achievement of the Group's strategic objectives while safeguarding the
interests of our clients, shareholders, and other key stakeholders.
Risk appetite
The Board sets the Group's risk appetite in the context of its strategic
objectives and regulatory obligations. The Group risk appetite statement,
reviewed at least annually by the Chief Risk Officer, the Group Executive
Committee, and the Group Risk Committee before being approved by the Board,
defines the level and nature of risk the Group is willing to accept in
pursuit of its objectives.
The statement outlines accountability for specific risk types and is supported
by a suite of key risk indicators (KRIs) and qualitative measures that allow
ongoing monitoring of the Group's risk profile. The appetite framework is
dynamic and may evolve as business conditions and strategic priorities change,
ensuring the Group remains responsive to emerging risks and market
developments.
Risk Governance
Oversight of the risk management framework and internal control environment is
integral to the Board's governance responsibilities. The Group Risk
Committee oversees risk management strategy, policy, framework and risk
appetite, while the Group Audit Committee assesses the adequacy and
effectiveness of the Group's risk management and internal control frameworks
covering all material financial, operational, compliance and reporting
controls.
Together, these committees provide robust oversight to ensure that risk
management remains embedded within decision-making processes and that the
Board is regularly informed of risk exposures, control effectiveness, emerging
threats, and the actions being taken to manage these in line with risk
appetite.
Risk identification and assessment
Annual Risk and Control Self-Assessments (RCSAs) are a key component of SJP's
risk and control management framework. RCSAs enable the identification,
assessment, management and monitoring of current and emerging risks. Risks are
evaluated in terms of their likelihood and potential impact on the Group's
financial position, reputation, regulatory compliance, and ability to deliver
good client outcomes. RCSA results are reviewed by management and reported to
the relevant committees and supported by annual attestations from senior
executives. This process helps to understand the control environment and the
risks faced by the business. Stress testing, scenario analysis, and horizon
scanning are used to evaluate resilience under a range of conditions, ensuring
the Group remains prepared for adverse developments in financial or
operational environments.
Risk reporting
Comprehensive and timely risk reporting enables effective oversight and
decision-making. Regular reports are provided to the Group Risk Committee,
Group Audit Committee and the Board, including analysis of key risk
indicators, risk trends, emerging issues, and changes in the external
environment. The reporting supports a transparent view of SJP's risk profile
and the effectiveness of controls and mitigating actions, ensuring
accountability and alignment with the Board's approved risk appetite.
Own Risk and Solvency Assessment (ORSA)
The ORSA is an integral part of SJP's risk and capital management framework.
It provides a forward-looking assessment of the adequacy of the Group's
capital resources in relation to the Group's risk profile and business
strategy. The ORSA process operates continuously throughout the year, with an
annual ORSA report reviewed and approved by the Board. The adequacy of capital
and liquidity arrangements, relative to the risk profile of each risk,
is also assessed on a solo-entity basis for material subsidiaries in the
Group. These assessments are aligned with their regulatory requirements.
Current risk environment
Operational Risk
The Group successfully implemented Simple, Comparable Charges in the second
half of 2025, with the launch of fundamental changes to SJP's charging
structure across the Group. This was the culmination of almost two years of
complex change activity, with a strong focus on risk management, robust
governance and effective change-management arrangements to manage the level
of associated risk.
The Group continues to review ongoing advice charges and refunding fees where
there is inadequate evidence to demonstrate that ongoing advice was provided
in line with regulatory obligations.
In 2024, the Group announced a redefined purpose and refreshed strategy.
During 2025, the implementation of a new organisational design model was
completed to support delivery of the strategy and to reduce the addressable
cost base. People-related risks were elevated during this period of change,
and the Group focused on managing impacts to employees while maintaining
operational and financial resilience.
Cyber security and threat landscape
The cyber-threat environment has continued to intensify into 2025. Increased
geopolitical tension, rapid innovation in AI-driven attack methods, and the
growing scale of organised cybercrime have further expanded both the risk
landscape and the sophistication of attempted intrusions.
SJP continues to strengthen its cyber-resilience capabilities through ongoing
investment in technology, enhanced threat-detection tools, improved governance
frameworks, and regular staff training. Maintaining strong operational
resilience and protecting client data remain critical priorities as threats
continue to evolve at pace.
Macroeconomic and political environment
Geopolitical uncertainty remains elevated, with potential implications for
global markets and supply chains. Despite this backdrop, SJP's business model
has continued to demonstrate resilience, and our long-term advice philosophy
remains central to supporting clients through fluctuating market conditions.
Although inflation has eased compared with the peak levels seen in previous
years, it remains a persistent feature of the UK economy. Current forecasts
suggest that inflation will continue to track above the UK Government's 2%
target over the near term, maintaining pressure on household budgets and
business operating costs. The wide-ranging tax and pension uncertainties are
expected to impact clients' decision making in 2026 and beyond.
The Group's advisers are ideally placed to support clients through the complex
and ever-changing macroeconomic and political environment, helping them to
make sustainable, long-term financial plans which align to their goals.
Regulatory change
Regulatory expectations continue to evolve in 2026, including a greater focus
on rebalancing risk to support economic growth. SJP engage closely with
regulators and industry bodies, ensuring that our advice processes, oversight
frameworks, and client communications develops in a manner consistent with
regulatory intent. Strengthening the Group's ability to assess and evidence
positive client outcomes remains a priority as regulatory expectations
develop.
The Board has initiated a comprehensive programme to prepare for the revised
requirements introduced by Provision 29 of the UK Corporate Governance Code.
From the financial year 2026 onwards, the Board will be required to publicly
issue a statement in the Annual Report and Accounts on how it has monitored
and reviewed the effectiveness of the risk management and internal control
framework.
This will include a declaration on the overall effectiveness of material
controls including a description of any material controls which are not
operating effectively as at the balance sheet date alongside actions being
taken to address any deficiencies.
Material controls are critical to managing the principal risks that could
threaten the business model, future performance, solvency, liquidity and
reputation, or affect the long-term sustainability and resilience of the
business. The scope covers all material controls including financial,
operational, reporting and compliance.
Sustainability and climate change
Sustainability and climate-related risks are integrated into the broader
enterprise risk management framework using consistent methodologies for
identification, assessment, management and monitoring. Climate and
sustainability risks are considered cross-cutting in nature, influencing
several of the Group's principal risks. Information on the actions being taken
to support the transition to a more sustainable economy and mitigating the
impacts of climate change on our business is provided in the Our Responsible
Business section.
Climate-related opportunities, along with the associated time horizons for
each risk and opportunity, are outlined in the Our Responsible Business
section. Further details on principal sustainability and climate-related
risks, including subsidiary-specific considerations, are provided in the Group
Climate Report.
Principal risks and uncertainties
The principal risks and uncertainties outlined below are used to help us
monitor and report the risk exposures that have the potential to impact the
group. Whilst the risk landscape continued to evolve, our principal risk
remained consistent with the previous year.
Principal risk Risk description Risk exposure Mitigation
Advice and conduct Quality, suitable advice, or service to clients is not provided. The risk that the quality or suitability of advice provided to clients may not • SJP strives to maintain appropriate standards of professional advice and
meet the required standards, or that the business may be unable to service.
sufficiently evidence the delivery of good-quality service and advice. Such
shortcomings could result in elevated complaint volumes, increased regulatory • We employ an onboarding, licensing and supervision programme for our
scrutiny, potential client detriment, and adverse impacts on the Group's advisers which is supported by advice standards, technical guidance, business
reputation and financial performance. assurance and compliance monitoring.
• We are focused on maintaining oversight of our advisers to ensure advice
quality and ongoing client service.
• Our complaints management, whistleblowing and investigation processes
underpin a culture of integrity and accountability.
Client proposition The product proposition fails to meet the needs, objectives and expectations The risk that investment performance may fall short of benchmarks or fail to • SJP is focused on delivering long-term value and investment outcomes
of clients. This includes poor relative investment performance or poor deliver the expected outcomes for clients. In addition, the range of that align with our clients' objectives. We employ ongoing monitoring of
product design. investment solutions offered may not remain aligned with the evolving product portfolio performance, asset allocations, and fund managers against defined
and service needs of current and future clients. Furthermore, failure to meet risk and return targets.
client expectations around sustainability, particularly in relation to climate
change and responsible investment could lead to reputational damage, loss of • We are committed to continuously enhancing our product and service range
client confidence, and reduced competitiveness. and to engaging with investment managers on responsible investment principles.
Financial The business's finances are not effectively managed. The risk that the Group's financials may be negatively impacted due to adverse • SJP is committed to maintaining a strong and resilient financial
movements in investment markets, insufficient liquidity, or exposure to credit position.
and counterparty failures. Fluctuations in market conditions, rising expenses
or operational inefficiencies could erode profitability. In addition, • We employ prudent asset-liability management to ensure clients'
weaknesses in finance operations or financial reporting processes could result investments are fully matched. We hold sufficient highly rated liquid
in inaccurate or delayed financial information, regulatory non-compliance, or instruments to be confident of meeting all liquidity requirements and maintain
loss of stakeholder confidence. contingent liquidity facilities to meet extreme and unexpected funding needs.
• We are focused on disciplined financial control, budgeting, and
monitoring to safeguard the Group's capital and solvency.
Partner proposition The Partner proposition solution fails to meet the needs, objectives and The risk that the Group may be unable to attract, retain, and develop • SJP is committed to be the best place to be a financial adviser in the
expectations of current and potential future advisers. advisers, or to provide the technology and support needed to enhance UK, by providing a market-leading proposition for our Partners and ensuring
productivity and deliver on growth objectives. they are supported by skilled business managers, reliable systems, and
high-quality administrative services.
• We continue to refine our Academy to attract, train, and retain
diverse, talented advisers, and on sustaining an environment in
which Partner businesses can thrive.
People SJP is unable to attract and retain the right people to run the business. The risk that the Group may be unable to attract, retain, and develop • Attracting, developing, and retaining talented people is key to
colleagues with the necessary skills, or to effectively manage performance and maintaining our business.
succession. In addition, failure to maintain an inclusive and supportive
culture, promote employee wellbeing, and uphold social value could adversely • Structured succession planning and talent management processes are
affect engagement, operational performance, and the Group's reputation. in place and we monitor engagement to ensure our people feel supported
and valued.
• We are focused on fostering a culture of integrity and social
responsibility, including charitable giving and whistleblowing protections.
Regulatory and legislative Current, changing, or new regulatory and legislative expectations are There is a risk that the Group fails to demonstrate compliance with evolving • SJP is committed to complying with all applicable regulations and
not met. Consumer Duty expectations along with other regulatory requirements. In legislation, and maintaining strong, open relationships with regulators.
addition, there is a risk that the Group may fail to prevent financial crime,
fraud, or other forms of misconduct, or to maintain adequate internal controls • We are focused on ensuring we have clear governance, accountability, and
to safeguard data. Failure to protect confidentiality, integrity, and reporting structures that support oversight and early identification of risks
availability of information, or to respond effectively to evolving regulatory or breaches in regulatory requirements.
expectations, could result in legal or regulatory sanctions, financial loss,
and reputational damage.
Security and resilience SJP fails to adequately secure its physical assets, systems and/or sensitive The risk that a failure of core systems, a cyber-attack, or other disruption • Our cyber and operational resilience framework is key to safeguarding
information, or to deliver critical business services to its clients. to key business services could impair the Group's ability to operate our clients, Partners, and business operations.
effectively and serve clients. Inadequate protection of corporate,
Partnership, or third-party systems and data could result in service • We employ comprehensive business continuity and incident management
interruption, regulatory breaches, financial loss, and reputational or client plans, cyber accreditation standards, and proactive monitoring of potential
harm. data and security threats.
Strategy and change Failure to deliver change effectively and in line with the agreed strategy. The risk that change initiatives may not deliver the expected strategic • SJP is committed to delivering strategic change in a controlled and
outcomes, benefits, or quality standards, or may exceed planned budgets and effective manner.
timelines. Inadequate change execution or delays could hinder delivery of key
business priorities, including commitments to achieving net zero, and • Rigorous governance and project management methodologies are in place
adversely affect the Group's strategic progress and reputation. to oversee transformation initiatives, and manage dependencies.
• We align change with long-term business objectives.
Third parties Third-party outsourcers' activities impact performance and risk management. The risk that operational failures by material outsourcers or other • SJP maintains strong oversight of our third-party relationships and
third-party service providers could disrupt critical business activities, employs comprehensive due diligence, performance monitoring, and resilience
including investment administration, fund management, custody, policy assessments to ensure suppliers meet our operational and service standards.
administration, and cloud services. Such failures could lead to client
detriment, regulatory breaches, financial loss, and reputational damage. • The Group focuses on effective exit and continuity planning to safeguard
our clients and the Group from potential disruptions.
Emerging risks
Emerging risks are identified through many activities: conversations and
workshops with stakeholders and governance forums throughout the business,
reviewing academic papers, attending industry events and other horizon
scanning by the Group Risk team.
The purpose of monitoring and reporting emerging risks is to give assurance
that the Group is well positioned to manage developing or rapidly changing
risks to its strategy. The Group Risk Committee reviewed emerging risks during
2025. Examples of emerging risks include:
· Cyber security risk - Increasing and evolving external threats
and sophistication of Cyber attacks that result in loss of client data,
financial assets, and damage to reputation.
· Regulatory change risk - Increasing and evolving regulatory
landscapes where SJP is subject to conduct and prudential regulation
in the UK by the PRA and FCA and in the other jurisdictions in which it
operates.
· Geopolitical risk - Political instability, trade wars, and other
geopolitical events can disrupt markets, reduce investment returns, and
increase operating costs.
· Artificial intelligence risk - Artificial intelligence (AI)
increases opportunities, and also presents a complex emerging risk, combining
fast-moving technology with evolving regulatory, ethics, data and operational
challenges.
· Demographic shift risk - An ageing population and demographic
shifts may affect both the demand for, and nature of, SJP services, requiring
ongoing alignment to the needs of an evolving client base, supported by
innovative products and a more advanced digital proposition.
Viability statement
How viability is assessed
The business considers five-year financial forecasts when developing its
strategy. These incorporate the budget for the next financial year and four
further years of forecasts based on reasonable central assumptions around the
development of business drivers.
At the core of assessing viability is understanding how different principal
risks could materialise. Risks are considered which might present either in
isolation or in combination and which could result in acute shocks to the
business or long-term underperformance against forecast business drivers. A
five-year time horizon is considered sufficiently long to assess potential
impacts and aim to ensure that the business remains viable, noting that
identified management actions could also be taken to restore the business's
prospects.
When considering how the principal risks previously described might affect
the business, impacts on the following key financial drivers are considered:
· reduction in client and Partner retention
· reduction in new business relative to forecasts
· market stresses
· increases in expenses
· direct losses through operational risk events.
Stress and scenario testing on these key financial drivers is carried out,
alongside operational risk assessments. To provide comfort over viability over
the next five years, the scenarios and assessments look at events which would
be extreme, whilst still remaining plausible. The analysis contained in the
most recent ORSA demonstrated that the Group is resilient.
As an example, a scenario considered in the most recent ORSA included a
severe fall in both markets and new business volumes, alongside significant
increases in lapse assumptions, expenses and inflation. Even in this extreme
scenario, the Group maintained capital well above the regulatory capital
requirements.
For adverse stresses and scenarios there would be impacts on profitability,
and depending on the severity of the scenario the Group would review and
implement recovery actions which aim to protect and/or restore the Group's
finances. In line with regulatory expectations the Group also maintains plans
to wind down the business in a solvent and orderly way in the event it became
unviable. These plans safeguard clients' investments and outcomes and seek to
preserve capital.
Conclusion
In accordance with the UK Corporate Governance Code (Provision 31), the
Directors have assessed the Group's current financial position and prospects
over the next five-year period and have a reasonable expectation that the
Group will be able to continue in operation and meet its liabilities as they
fall due. The Directors believe that the Group's risk planning, management
processes and culture allow for a risk-conscious environment.
Consolidated statement of comprehensive income
Note Year ended Year ended
31 December 31 December
2025 2024
£'Million £'Million
Fee and commission income 4 3,766.4 3,163.9
Expenses (2,551.9) (2,236.7)
Investment return 5 26,371.8 22,785.3
Movement in investment contract benefits 5 (26,285.5) (22,688.5)
Insurance revenue 24.2 25.2
Insurance service expenses (22.6) (21.8)
Net reinsurance expense (0.4) (3.1)
Insurance service result 1.2 0.3
Net insurance finance (expense)/ income (1.9) 2.7
Finance income 64.0 58.5
Finance costs (28.9) (36.4)
Profit before tax 1,335.2 1,049.1
Tax attributable to policyholders' returns 6 (638.5) (513.2)
Profit before tax attributable to shareholders' returns 696.7 535.9
Total tax charge 6 (803.8) (650.7)
Less: tax attributable to policyholders' returns 6 638.5 513.2
Tax attributable to shareholders' returns 6 (165.3) (137.5)
Profit and total comprehensive income for the year 531.4 398.4
Profit attributable to non-controlling interests 0.3 -
Profit attributable to equity shareholders 531.1 398.4
Profit and total comprehensive income for the year 531.4 398.4
Note Pence Pence
Basic earnings per share 12 99.9 73.0
Diluted earnings per share 12 98.8 72.6
The results relate to continuing operations.
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 year - - - -
- 398.4 398.4 - 398.4
Dividends 12 - - - - - (76.6) (76.6) (0.2) (76.8)
Shares repurchased in buy-back programmes 12
(0.7) - 0.7 - - (33.1) (33.1) - (33.1)
Consideration paid for own shares
- - - (9.5) - - (9.5) - (9.5)
Retained earnings credit in respect of share option charges
- - - - - 11.2 11.2 - 11.2
At 31 December 2024 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 year - - - -
- 531.1 531.1 0.3 531.4
Dividends 12 - - - - - (96.3) (96.3) (0.2) (96.5)
Exercise of share options - 1.5 - - - - 1.5 - 1.5
Shares repurchased in buy-back programmes 12
(2.5) - 2.5 - - (189.2) (189.2) - (189.2)
Consideration paid for own shares
- - - (61.3) - - (61.3) - (61.3)
Shares sold during the year
- - - 3.0 - (3.0) - - -
Retained earnings credit in respect of share option charges
- - - - - 19.2 19.2 - 19.2
At 31 December 2025 79.1 235.4 3.2 (68.5) 2.5 1,227.1 1,478.8 - 1,478.8
The number of shares held in the shares in trust reserve is given in Note 12
Share capital, earnings per share and shareholder returns.
Miscellaneous reserves represent other non-distributable reserves.
Consolidated statement of financial position
Note As at As at
31 December 31 December
2025 2024
£'Million £'Million
Assets
Goodwill 18.5 23.3
Deferred acquisition costs 284.1 286.2
Intangible assets 8.1 15.5
Property and equipment, including leased assets 122.3 134.0
Investment property 370.3 892.3
Deferred tax assets 6 10.2 2.7
Investment in associates 24.0 21.9
Reinsurance assets 11.7 14.9
Other receivables 7 2,861.6 2,687.4
Financial investments 212,073.5 182,320.2
Derivative financial assets 2,908.7 2,812.8
Cash and cash equivalents 6,184.5 5,663.9
Total assets 224,877.5 194,875.1
Liabilities
Borrowings 10 341.5 516.8
Deferred tax liabilities 6 966.2 679.4
Insurance contract liabilities 566.2 518.6
Deferred income 421.6 469.5
Other provisions 9 298.4 460.3
Other payables 8 2,655.3 2,144.3
Investment contract benefits 163,728.7 141,038.8
Derivative financial liabilities 2,412.1 3,052.1
Net asset value attributable to unit holders 51,982.8 44,699.5
Income tax liabilities 25.9 22.1
Total liabilities 223,398.7 193,601.4
Net assets 1,478.8 1,273.7
Shareholders' equity
Share capital 12 79.1 81.6
Share premium 235.4 233.9
Capital redemption reserve 3.2 0.7
Shares in trust reserve (68.5) (10.2)
Miscellaneous reserves 2.5 2.5
Retained earnings 1,227.1 965.3
Equity attributable to owners of the Parent Company 1,478.8 1,273.8
Non-controlling interests - (0.1)
Total equity 1,478.8 1,273.7
Pence Pence
Net assets per share 280.5 234.1
Consolidated statement of cash flows
Note Year ended Year ended
31 December 31 December
2025 2024
£'Million £'Million
Cash flows from operating activities
Cash generated from/(used in) operations 11 1,396.1 (528.5)
Interest received 224.5 236.6
Interest paid (28.9) (36.4)
Income taxes paid 6 (524.5) (326.1)
Net cash inflow/(outflow) from operating activities(1) 1,067.2 (654.4)
Cash flows from investing activities
Payments for property and equipment (1.1) (3.6)
Payment of software development costs - (5.1)
Payments for acquisition of subsidiaries and other business combinations, (0.8)
net of cash acquired
-
Payments for associates (1.7) (8.3)
Contingent consideration paid(1) (4.8) (1.3)
Net cash outflow from investing activities (8.4) (18.3)
Cash flows from financing activities
Proceeds from the issue of share capital and exercise of options 1.5 -
Shares repurchased in share buy-back programmes 12 (189.2) (33.1)
Consideration paid for own shares (61.3) (9.5)
Proceeds from borrowings 10 135.7 473.8
Repayment of borrowings 10 (311.7) (208.1)
Principal elements of lease payments (14.0) (14.0)
Dividends paid to Company's shareholders 12 (96.3) (76.6)
Dividends paid to non-controlling interests in subsidiaries (0.2) (0.2)
Net cash (outflow)/ inflow from financing activities (535.5) 132.3
Net increase/(decrease) in cash and cash equivalents 523.3 (540.4)
Cash and cash equivalents at 1 January 5,663.9 6,204.3
Effects of exchange rate changes on cash and cash equivalents (2.7) -
Cash and cash equivalents at 31 December 6,184.5 5,663.9
1 Represented £1.3 million of Contingent consideration paid from operating
activities to investing activities which better reflects the nature of the
item.
Notes to the consolidated financial statements under International Financial
Reporting Standards
1. Accounting policies
The Group financial statements consolidate those of the Company and its
subsidiaries (together referred to as the Group).
The Group financial statements have been prepared in accordance with
UK-adopted International Accounting Standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.
As at 31 December 2025 there were no new and amended standards, that became
effective on or after 1 January 2025, that were relevant to the Group.
New and amended accounting standards not yet effective
As at 31 December 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. All of the below have been 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.
Basis of preparation
The going concern basis has been adopted in preparing these financial
statements.
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 Officer'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 Note 22 Capital management and allocation of the St. James's Place
plc Annual Report and Accounts 2025, 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. In addition, the
Fitch rating remains at A+ for SJPUK (A at SJP PLC level). 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 continued during 2025, noting that the business continued to
be successful in this environment. Notwithstanding these challenges, gross
inflows for 2025 were £21.9 billion, up 19% on 2024. Retention of client
funds under management remained strong at 94.9% resulting in net inflows of
£6.2 billion. These factors 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.
The Board has also considered a profitability forecast including base case
scenario and severe but plausible downside scenarios. In modelling these
scenarios, the Group has considered its liquidity, cash and IFRS results. The
downside scenarios are severe but plausible and would still leave the Group
with a positive cash result and IFRS profit.
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
financial statements.
The financial statements are presented in pounds Sterling rounded to the
nearest one hundred thousand pounds. They are prepared on a historical cost
basis, except for assets classified as investment property and financial
assets and liabilities at fair value through profit and loss.
The preparation of the financial statements in conformity with IFRSs requires
management to make judgements, estimates and assumptions that affect the
application of policies and reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of
making judgements about the carrying values of assets and liabilities that
are not readily apparent from other sources. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the year in which the
estimate is revised if the revision affects only that year, or in the year of
the revision and future years, if the revision affects both current and future
years.
Judgements made by management in the application of IFRSs that have material
effect on the financial statements and estimates with a significant risk of
material adjustment in the next year are discussed in Note 2.
The financial statements are prepared in accordance with the Companies Act
2006 as applicable to companies reporting under IFRS, and the accounting
policies set out below have been applied consistently to all years presented
in these consolidated financial statements.
Other accounting policies
The other accounting policies used by the Group in preparing the results are
consistent with those applied in preparing the statutory accounts for the year
ended 31 December 2025.
Alternative performance measures
Within the financial statements, a number of 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 Endorsement Board. APMs are used to provide
greater insight into the performance of the Group and the way it is managed
by the Directors. A definition of each of the APMs is included in the glossary
of alternative performance measures section, which explains why it is used
and, where applicable, explains how the measure can be reconciled to the IFRS
financial statements.
2. Critical accounting estimates and judgements in applying accounting
policies
Estimates
Critical accounting estimates are those which give rise to a significant risk
of material adjustment to the balances recognised in the financial statements
within the next 12 months. The Group's critical accounting estimates
relate to:
· determining the value of insurance contract liabilities and
reinsurance assets.
· determining the fair value of investment property.
· determining the fair value of Level 3 fixed income securities and
equities.
· determining the value of the Ongoing Service Evidence provision.
Estimates are also applied in calculating other assets of the financial
statements, including determining the value of deferred tax assets, investment
contract benefits, the operational readiness prepayment and other provisions.
Determining the value of insurance contract liabilities and reinsurance assets
In accordance with IFRS 17, the Group has used the following assumptions in
the calculation of insurance contract liabilities and reinsurance assets:
· the assumed rate of investment return, which is based on current
risk-free swap rates.
· the mortality and morbidity rates, which are based on the results
of an investigation of experience during the year.
· the level of expenses, which for the year under review is based
on actual expenses in 2025 and expected rates in 2026 and over the long term.
· the lapse assumption, which is set based on an investigation of
experience during the year.
· the risk adjustment, which is determined using a cost of capital
approach with a 3% charge (2024: 3%). There has been no change during the
year.
Further details of the valuation of insurance contract liabilities and
reinsurance assets, including sensitivity analysis, are set out in Note 17 of
the IFRS financial statements in the St. James's Place plc Annual Report and
Accounts 2025.
Determining the fair value of investment property
In accordance with IAS 40, the Group initially recognises investment
properties at cost, and subsequently remeasures its portfolio to fair value in
the statement of financial position. Fair value is determined at least monthly
by professional external valuers. It is based on anticipated market values for
the properties in accordance with the guidance issued by the Royal Institution
of Chartered Surveyors (RICS), 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, the 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. Wherever appropriate, sustainability and environmental matters
are an integral part of the valuation approach. In a valuation context,
sustainability encompasses a wide range of physical, social, environmental and
economic factors that can affect value. The range of issues includes key
environmental risks, such as flooding, energy efficiency and climate, as well
as design, configuration, accessibility, legislation, management and fiscal
considerations - and, additionally, current and historical land use. As such,
investment properties are classified as Level 3 in the IFRS 13 fair value
hierarchy because they are valued using techniques which are not based on
observable inputs.
During the prior year, SJP announced the decision to wind down the Property
Unit Trust and remove the Property Life and Pension fund options. The process
of determining the fair value of investment property remains unchanged.
Further details of the valuation of investment properties, including
sensitivity analysis, are set out in Note 20 of the IFRS financial statements
in the St. James's Place plc Annual Report and Accounts 2025.
Determining the fair value of Level 3 fixed income securities and equities
In accordance with IFRS 9, the Group elects to classify its portfolio of
policyholder fixed income securities at fair value through profit and loss to
match the accounting for policyholder liabilities. Its portfolio of equities
is required to be held at fair value through profit and loss. As a result, all
fixed income securities and equities are held at fair value, with the best
evidence of the fair value at initial recognition typically being the
transaction price, i.e. the fair value of the consideration given or received.
A number of investments are held in private credit and private equity assets,
which are recognised within fixed income securities and within equities,
respectively, on the consolidated statement of financial position. The fair
value of these assets is determined following a monthly valuation process
which uses two different valuation models and includes verification by
professional external valuers. The models use suitable market comparatives and
an estimate of future cash flows expected to flow from the issuing entity.
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 methodology, and the point in the range
of valuations to select as the fair value. As the inputs to the valuation
models are unobservable, the investments in private credit and private equity
assets are classified as Level 3 in the IFRS 13 fair value hierarchy.
Further details about the valuation models, including sensitivity analysis, is
set out in Note 20 of the IFRS financial statements in the St. James's Place
plc Annual Report and Accounts 2025.
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 year, 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 9.
Judgements
The primary areas in which the Group has applied judgement are as follows:
Consolidation
Entities are consolidated within the Group financial statements if they are
controlled by the Group. Control exists if the Group is exposed to, or has
rights to, variable returns from its involvement with the entity and the Group
has the ability to affect those returns through its power over the entity.
Significant judgement can be involved in determining whether the Group
controls an entity, such as in the case of the structured entity set up for
the Group's securitisation transaction, SJP Partner Loans No.1 Limited, and
for the Group's unit trusts.
A structured entity is one that has been designed so that voting or similar
rights are not the dominant factor in deciding who controls the entity. As a
result, factors such as whether a Group entity is able to direct the relevant
activities of the entity and the extent to which the Group is exposed to
variability of returns are considered. In the case of SJP Partner Loans No.1
Limited, it was determined that the Group does control the entity and hence it
is consolidated. This is due to an entity in the Group holding the junior
tranche of loan notes, hence being subject to variability of returns, and the
same entity being able to direct the relevant activities of the structured
entity through its role of servicer to the securitised portfolio.
Unit trusts are consolidated when the Group holds more than 30% of the units
in that unit trust. This is the threshold at which the Group is considered to
achieve control, having regard to factors such as:
· the scope of decision-making authority held by
St. James's Place Unit Trust Group Limited, the unit trust manager.
· rights held by external parties to remove the unit trust manager.
· the Group's exposure to variable returns through its holdings in
the unit trusts and its ability to influence the unit trust manager's
remuneration.
Determining non-performing business loans to Partners
Business loans to Partners are considered to be non-performing (Stage 3), in
the context of the definition prescribed by IFRS 9, if they are in default.
This is defined as a loan to either:
· a Partner who has left the St. James's Place Partnership; or
· a Partner whom management considers to be at significant risk of
leaving the Partnership and where an orderly settlement of debt is considered
to be in question.
Determining the derecognition of business loans to Partners
Business loans to Partners are derecognised, in the context of the definition
prescribed by IFRS 9, when:
· the assets have been sold to a third-party
· there is an obligation to pay received cash flows in full without
material delay to a third party under a 'pass-through' arrangement
· the originator has transferred substantially all the risks and
rewards of owning the assets.
See Note 7 for further information on the derecognition of business loans to
Partners.
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.
More detail is provided in section 2.2 of the financial review.
The Cash result should not be confused with the IFRS consolidated statement of
cash flows, which is prepared in accordance with IAS 7.
Year ended Year ended
31 December 2025 31 December 2024
£'Million £'Million
Underlying cash result after tax 462.3 447.2
Ongoing Service Evidence provision 82.1 -
Movement in DAC/DIR/PVIF 35.2 (0.1)
Impact of policyholder tax asymmetry (see Note 4) (35.4) (38.9)
Equity-settled share-based payments (19.2) (11.2)
Impact of deferred tax 8.0 (9.0)
Other (1.6) 10.4
IFRS profit after tax 531.4 398.4
Shareholder tax 165.3 137.5
Profit before tax attributable to shareholders' returns 696.7 535.9
Tax attributable to policyholder returns 638.5 513.2
IFRS profit before tax 1,335.2 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.
Year ended Year ended
31 December 2025 31 December 2024
£'Million £'Million
EEV operating profit before tax after exceptional items 1,829.8 1,045.0
Investment return variance 709.4 533.7
Economic assumption changes 37.4 23.5
EEV profit before tax 2,576.6 1,602.2
Adjustments to IFRS basis:
Deduct: amortisation of purchased value of in-force business (3.2) (3.2)
Movement of balance sheet life value of in-force business (net of tax) (383.8) (354.5)
Movement of balance sheet unit trust and DFM value of in-force business (net (438.2) (345.4)
of tax)
Movement of balance sheet other value of in-force business (net of tax) (583.5) (291.4)
Tax on movement in value of in-force business (471.2) (71.8)
Profit before tax attributable to shareholders' returns 696.7 535.9
Tax attributable to policyholder returns 638.5 513.2
IFRS profit before tax 1,335.2 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.
31 December 2025 31 December 2024
£'Million £'Million
Investment bond 44,120.0 39,180.0
Pension 119,940.0 101,980.0
UT/ISA and DFM 55,950.0 49,050.0
Total FUM 220,010.0 190,210.0
Exclude client and third-party holdings in non-consolidated unit trusts and (4,038.9) (4,183.3)
DFM
Other 3,693.7 3,923.7
Gross assets held to cover unit liabilities 219,664.8 189,950.4
IFRS intangible assets 326.5 335.1
Shareholder gross assets 4,886.2 4,589.6
Total assets 224,877.5 194,875.1
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 of the St. James's Place Annual
Report and Accounts 2025.
4. Fee and commission income
Year ended Year ended
31 December 31 December
2025 2024
£'Million £'Million
Advice charges (post RDR) 1,396.0 1,089.2
Third-party fee and commission income 142.0 131.3
Wealth management fees 1,149.7 1,234.1
Investment management fees 276.6 74.5
Fund tax deductions 638.5 513.2
Policyholder tax asymmetry (35.4) (38.9)
Discretionary fund management fees 22.6 23.4
Fee and commission income before DIR amortization 3,590.0 3,026.8
Amortisation of DIR 176.4 137.1
Total fee and commission income 3,766.4 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
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
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 year to 31 December 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 St. James's Place 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
Year ended Year ended
31 December 31 December
2025 2024
£'Million £'Million
Attributable to unit-linked investment contract benefits:
Rental income 37.9 60.8
Loss on revaluation of investment properties (7.4) (3.3)
Net investment return on financial instruments classified at fair value 20,024.1 15,594.6
through profit and loss
20,054.6 15,652.1
Income attributable to third-party holdings in unit trusts 6,230.9 7,036.4
Investment return on net assets held to cover unit liabilities 26,285.5 22,688.5
Net investment return on financial instruments classified at fair value 86.4 95.6
through profit and loss
Net investment return on financial instruments held at amortised cost (0.1) 1.2
Investment return on shareholder assets 86.3 96.8
Total investment return 26,371.8 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 £2,112.3 million (2024:
£1,576.7 million).
Movement in investment contract benefits
2025 2024
£'Million £'Million
Balance at 1 January 141,038.8 123,149.8
Deposits 16,858.3 14,451.6
Withdrawals (12,752.0) (10,778.2)
Movement in unit-linked investment contract benefits 20,054.6 15,652.1
Fees and other adjustments (1,471.0) (1,436.5)
Balance at 31 December 163,728.7 141,038.8
Current 7,826.1 6,762.1
Non-current 155,902.6 134,276.7
163,728.7 141,038.8
Movement in unit liabilities
Unit-linked investment contract benefits 20,054.6 15,652.1
Third-party unit trust holdings 6,230.9 7,036.4
Movement in investment contract benefits in the 26,285.5
consolidated statement of comprehensive income
22,688.5
6. Income and deferred taxes
Tax for the year
Year ended Year ended
31 December 31 December
2025 2024
£'Million £'Million
Current tax
UK corporation tax
- Current year charge 513.4 330.7
- Adjustment in respect of prior year 2.2 1.9
Overseas taxes
- Current year charge 12.2 17.0
- Adjustment in respect of prior year 0.1 (0.3)
527.9 349.3
Deferred tax
Unrealised capital gains in unit-linked funds 285.5 261.6
Unrelieved expenses
- Utilisation in the year 7.1 8.9
DAC, DIR and PVIF (1.6) (5.3)
Share-based payments (13.3) (5.3)
Renewal income assets (3.1) (3.9)
Fixed asset timing differences - 0.5
UK trading losses - 40.8
Other items 3.4 3.8
Transitional adjustment (1.1) 3.4
Adjustment in respect of prior year (1.0) (3.1)
275.9 301.4
Total tax charge for the year 803.8 650.7
Attributable to:
- Policyholders 638.5 513.2
- Shareholders 165.3 137.5
803.8 650.7
The adjustment in respect of prior year of £2.3 million charge in current tax
above represents a £3.4 million charge in respect of policyholder tax (2024:
£2.4 million charge) and a credit of £1.1 million in respect of shareholder
tax (2024: £0.8 million credit). The adjustment in respect of prior year of
£1.0 million credit in deferred tax above represents £nil in respect of
policyholder tax (2024: £0.1 million credit) and a credit of £1.0 million in
respect of shareholder tax (2024: £3.0 million credit).
In arriving at the profit before tax attributable to shareholders' returns, it
is necessary to estimate the distribution 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
Year ended Year ended
31 December 31 December
2025 2024
£'Million £'Million
Profit before tax 1,335.2 1,049.1
Tax attributable to policyholders' returns (638.5) (513.2)
Profit before tax attributable to shareholders' returns 696.7 535.9
Shareholder tax charge at corporate tax rate of 25% (2024: 25%) 174.2 25% 134.0 25%
Adjustments:
Lower rates of corporation tax in overseas subsidiaries (3.2) (0.5%) (1.2) (0.2%)
Expected shareholder tax 171.0 24.5% 132.8 24.8%
Effects of:
Non-taxable income (0.4) (0.4)
Adjustment in respect of prior year
- Current tax (1.1) (0.8)
- Deferred tax (1.0) (3.1)
Differences in accounting and tax bases in relation to employee share schemes (12.2) (3.1)
Disallowable expenses 5.9 6.1
Change in accounting base - Hong Kong - 4.2
Provision for future liabilities - (0.6)
Tax losses not recognised 0.5 2.4
Other 2.6 -
(5.7) (0.8%) 4.7 0.9%
Shareholder tax charge 165.3 23.7% 137.5 25.7%
Policyholder tax charge 638.5 513.2
Total tax charge for the year 803.8 650.7
Tax calculated on profit before tax at 25.0% (2024: 25.0%) would amount to a
charge of £333.8 million (2024: £262.3 million charge). The difference of
£470.0 million (2024: £388.4 million) between this number and the total tax
charge of £803.8 million (2024: £650.7 million charge) is made up of the
reconciling items above which total a credit of £8.9 million (2024: £3.5
million charge) and the effect of the apportionment methodology on tax
applicable to policyholder returns of £478.9 million (2024: £384.9 million).
Tax paid in the year
Year ended Year ended
31 December 31 December
2025 2024
£'Million £'Million
Current tax charge for the year 527.9 349.3
Payments to be made in future years in respect of current year (26.2) (22.9)
Payments made in current year in respect of prior years 22.5 0.6
Other 0.3 (0.9)
Tax paid 524.5 326.1
Tax paid can be analysed as:
- Taxes paid in UK 404.3 252.4
- Taxes paid in overseas jurisdictions 5.4 5.9
- Withholding taxes suffered on investment income received 114.8 67.8
Total 524.5 326.1
Deferred tax balances
Deferred tax assets
As at Credit/(charge) to the statement of comprehensive income Impact of acquisitions Reanalysis from deferred tax liabilities As at 31 December 2025 Expected utilisation period
1 January
2025
Utilised and created in year Total As at 31 December 2025
credit/ (charge)
£'Million £'Million £'Million £'Million £'Million £'Million
Deferred acquisition costs (DAC) 0.9 0.5 0.5 - (17.3) (15.9) 14 years
Deferred income (DIR) 1.7 (3.6) (3.6) - 29.2 27.3 14 years
Fixed asset temporary differences - 0.6 0.6 - 0.3 0.9 6 years
Renewal income assets - 3.1 3.1 (3.9) (17.3) (18.1) 20 years
Share-based payments - 13.2 13.2 0.4 10.1 23.7 3 years
Other temporary differences 0.1 (2.9) (2.9) - (4.9) (7.7) -
Total 2.7 10.9 10.9 (3.5) 0.1 10.2
As at 1 January 2024 (Charge)/credit to the statement of comprehensive income Impact of acquisitions Reanalysis to deferred tax liabilities As at 31 December 2024 Expected utilisation period
Utilised and created in year Total (charge)/ credit As at 31 December 2024
£'Million £'Million £'Million £'Million £'Million £'Million
Deferred acquisition costs (DAC) (18.6) 0.1 0.1 - 19.4 0.9 14 years
Deferred income (DIR) 35.1 (0.1) (0.1) - (33.3) 1.7 14 years
Fixed asset temporary differences 1.3 - - - (1.3) - 6 years
Renewal income assets (19.9) - - - 19.9 - 20 years
Share-based payments 4.8 - - - (4.8) - 3 years
UK trading losses 36.1 (36.1) (36.1) - - - -
Other temporary differences (2.3) - - - 2.4 0.1 -
Total 36.5 (36.1) (36.1) - 2.3 2.7
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 31 December 2025 31 December 2025
2025
£'Million £'Million £'Million £'Million £'Million £'Million
Deferred acquisition costs (DAC) 24.1 (3.8) (3.8) - (17.3) 3.0 14 years
Deferred income (DIR) (30.1) (0.1) (0.1) - 29.2 (1.0) 14 years
Purchased value of in-force business (PVIF) 1.2 (0.8) (0.8) - - 0.4 1 year
Unrealised capital gains on life insurance (BLAGAB) assets 684.9 285.5 285.5 - - 970.4 6 years
backing unit liabilities
Unrelieved expenses on life insurance business (17.3) 7.1 7.1 - 0.1 (10.1) 3 years
Fixed asset temporary differences (0.4) - - - 0.4 - 6 years
Renewal income assets 17.4 (0.1) (0.1) 0.1 (17.3) 0.1 20 years
Share-based payments (10.1) - - - 10.1 - 3 years
Transitional adjustment 5.0 (1.1) (1.1) (0.4) (0.3) 3.2 3 years
Other temporary differences 4.7 0.1 0.1 0.2 (4.8) 0.2 -
Total 679.4 286.8 286.8 (0.1) 0.1 966.2
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 from As at As at
1 January deferred tax assets 31 December 2024 31 December 2024
2024
£'Million £'Million £'Million £'Million £'Million £'Million
Deferred acquisition costs (DAC) 12.3 (7.6) (7.6) - 19.4 24.1 14 years
Deferred income (DIR) - 3.2 3.2 - (33.3) (30.1) 14 years
Purchased value of in-force business (PVIF) 2.0 (0.8) (0.8) - - 1.2 2 years
Unrealised capital gains on life insurance (BLAGAB) assets 423.4 261.5 261.5 - - 684.9 6 years
backing unit liabilities
Unrelieved expenses on life insurance business (26.2) 8.9 8.9 - - (17.3) 4 years
Fixed asset temporary differences - 0.9 0.9 - (1.3) (0.4) 6 years
Renewal income assets - (2.5) (2.5) - 19.9 17.4 20 years
Share-based payments - (5.3) (5.3) - (4.8) (10.1) 3 years
Transitional adjustment - 3.4 3.4 - 1.6 5.0 4 years
Other temporary differences 0.2 3.6 3.6 0.1 0.8 4.7 -
Total 411.7 265.3 265.3 0.1 2.3 679.4
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 £20.9
million (2024: £19.4 million) in respect of £127.7 million (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
Asia-based businesses and can be carried forward indefinitely.
Future tax changes
In the UK Autumn Budget 2025, the government announced an increase to the rate
of income tax in relation to savings income from 20% to 22% for the savings
basic rate band, with effect from 1 April 2027. This change has yet to be
substantively enacted and as a result no remeasurement of deferred tax
balances have taken place at 2025 year end. There remains some uncertainty
regarding the application of this change specifically in respect of life
policies so we continue to monitor developments. The potential impact, at 31
December 2025 of a remeasurement in deferred tax would be a £71.3m
policyholder tax charge as a result of an increase to the deferred tax
liabilities.
Global minimum tax - Pillar two
The SJP Group is subject to the Global minimum tax rules introduced by the
Organisation for Economic Co-operation and Development (OECD) in 2024 and
adopted into local legislation of various territories in which the 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 £0.3 million
additional Irish tax has been posted in this respect (year to 31 December
2024: £0.1m charge). A Pillar Two adjustment is not required in any other
location in which SJP operates. The Company has applied the exception afforded
by the International Tax Reform - Pillar Two Model Rules (Amendments to IAS
12), and as such does not recognise and disclose deferred tax impacts of any
future top-up tax.
7. Other receivables
31 December 31 December
2025 2024
£'Million £'Million
Receivables in relation to unit liabilities excluding policyholder 715.3 656.4
interests
Other receivables in relation to life and unit trust business 90.4 55.9
Operational readiness prepayment 228.1 256.3
Advanced payments to Partners 124.3 137.4
Other prepayments and accrued income 34.8 37.8
Business loans to Partners 639.9 557.3
Renewal income assets 119.8 121.0
Miscellaneous 34.7 45.3
Total other receivables on the Solvency II Net Assets Balance Sheet 1,987.3 1,867.4
Policyholder interests in other receivables 871.4 816.7
Other 2.9 3.3
Total other receivables 2,861.6 2,687.4
Current 1,913.0 1,781.3
Non-current 948.6 906.1
2,861.6 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
31 December 31 December
2025 2024
£'Million £'Million
Business loans to Partners directly funded by the Group 370.1 386.6
Securitised business loans to Partners 269.8 170.7
Total business loans to Partners 639.9 557.3
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.
Reconciliation of the business loans to Partners' opening and closing gross
loan balances
Stage 1: Stage 2: Stage 3: Total
performing under- non-
performing performing
£'Million £'Million £'Million £'Million
Gross balance at 1 January 2025 484.2 48.5 33.1 565.8
Business loans to Partners classification changes:
- Transfer to underperforming (10.8) 10.8 - -
- Transfer to non-performing (7.1) (0.3) 7.4 -
- Transfer to performing 19.5 (19.0) (0.5) -
New lending activity during the year 175.7 1.9 1.5 179.1
Interest charged during the year 40.5 2.7 2.8 46.0
Repayment activity during the year (132.4) (5.9) (3.5) (141.8)
Gross balance at 31 December 2025 569.6 38.7 40.8 649.1
Stage 1: Stage 2: Stage 3: Total
performing under- non-
performing performing
£'Million £'Million £'Million £'Million
Gross balance at 1 January 2024 359.7 44.6 8.5 412.8
Business loans to Partners classification changes:
- Transfer to underperforming (19.0) 19.0 - -
- Transfer to non-performing (21.0) (2.5) 23.5 -
- Transfer to performing 16.5 (16.4) (0.1) -
New lending activity during the year 215.0 7.8 2.6 225.4
Interest charged during the year 37.4 3.6 2.0 43.0
Repayment activity during the year (104.4) (7.6) (3.4) (115.4)
Gross balance at 31 December 2024 484.2 48.5 33.1 565.8
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. For those business loans to Partners sold to a
third-party in 2022, full credit risk was transferred.
The provision held against business loans to Partners as at 31 December 2025
was £9.2 million (2024: £8.5 million). During the year, £1.7 million of the
provision was released (2024: £1.1 million), £nil was utilised (2024: £3.1
million) and new provisions and adjustments to existing provisions increased
the total by £2.4 million (2024: £7.9 million).
There is no provision held against any other receivables held at amortised
cost.
Business loans to Partners as recognised on the statement of financial
position
31 December 31 December
2025 2024
£'Million £'Million
Gross business loans to Partners 649.1 565.8
Provision (9.2) (8.5)
Net business loans to Partners 639.9 557.3
Renewal income assets
Movement in renewal income assets
2025 2024
£'Million £'Million
Balance at 1 January 121.0 138.3
Additions 16.2 4.8
Disposals (0.3) (0.7)
Revaluation (17.1) (21.4)
Balance at 31 December 119.8 121.0
The key assumptions used for the assessment of the fair value of the renewal
income are as follows:
31 December 31 December
2025 2024
Lapse rate - SJP Partner renewal income 1 5.0% to 15.0% 5.0% to 15.0%
Lapse rate - non-SJP renewal income 1 10.4% to 25.0% 6.5% to 25.0%
Discount rate 17.3% 15.8%
1 Future income streams are projected making use of retention assumptions
derived from the Group's experience of the business or, where insufficient
data exists, from external industry experience. These assumptions are reviewed
on an annual basis.
These assumptions have been used for the analysis of each business combination
classified within renewal income.
8. Other payables
31 December 31 December
2025 2024
£'Million £'Million
Payables in relation to unit liabilities excluding policyholder interests 179.6 216.7
Other payables in relation to life and unit trust business 602.5 590.4
Accrual for ongoing advice fees 267.6 168.9
Other accruals 210.0 138.5
Contract payment 59.9 72.2
Lease liabilities: properties 100.8 107.2
Other payables in relation to Partner payments 91.5 88.9
Miscellaneous 99.0 62.6
Total other payables on the Solvency II Net Assets Balance Sheet 1,610.9 1,445.4
Policyholder interests in other payables 1,029.2 692.7
Other(1) 15.2 6.2
Total other payables 2,655.3 2,144.3
Current 2,517.0 1,992.5
Non-current 138.3 151.8
2,655.3 2,144.3
1 See adjustment 2 on page 211 of the St. James's Place plc Annual Report
and Accounts 2025
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 £59.9 million (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.
9. 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 21.8 - 0.3 0.3 22.4
Utilised during the year (24.9) (18.5) (0.1) - (43.5)
Impact of discounting - 17.6 - - 17.6
Release of provision (35.3) - (1.0) - (36.3)
At 31 December 2024 17.7 425.1 14.1 3.4 460.3
Additional provisions 45.4 - 1.2 0.6 47.2
Utilised during the year (38.9) (52.5) (0.5) - (91.9)
Impact of discounting - 9.2 - - 9.2
Release of provision (16.4) (109.5) (0.5) - (126.4)
At 31 December 2025 7.8 272.3 14.3 4.0 298.4
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 £0.6 million to the total
complaints provision. It is estimated that significantly all the provision
will be utilised over a one year period from the reporting date.
Ongoing Service Evidence provision
The Group has committed to review the sub-population of clients that have 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. The provision is based on an
extrapolation of the experience of a representative cohort of clients. See
Note 2 for further information. The provision that has been recognised
includes an estimated refund of charges, together with interest at FOS rates,
plus the administration costs associated with completing this work. Allowance
is also made for discounting over the expected duration of the exercise.
The release of £109.5 million during the year reflects the impacts of a) the
Group's revised redress methodology implemented during the first half of the
year, which better aligns to new industry guidance from the FCA and b) the
Group's experience gained from the project across the year.
IAS 37 and IAS 1 requires the Group to set out sensitivities. In compliance
with these requirements, the following table sets out the potential change to
the provision balance at 31 December 2025 if the key assumptions were to vary
as described:
Sensitivity analysis Change in profit/(loss)
Change in assumption before tax
31 December 2025 31 December 2024
Percentage £'Million £'Million
Extrapolation from a representative cohort +2% (18.6) (22.0)
- Variation in proportion of client population subject to the review -2% 18.6 22.0
Extrapolation from a representative cohort +10% (25.7) (31.0)
- Variation in the level of charges, subject to refund -10% 25.7 31.0
Opt-In response rate +10% (10.3) (17.0)
- Variation in response rate -10% 10.3 17.0
Administration costs +10% (2.0) (12.0)
- Change in estimation of the cost to fulfil the exercise (cost per claim) -10% 2.0 12.0
It is estimated that significantly all the provision will be utilised within
one year from the reporting date.
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. The Group expects £2.1 million (2024: £1.3 million) of the provision
to be utilised within one year. The majority of the provision relates to
leased property with a maturity date of greater than five years.
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 Ongoing Service Evidence provision, 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. The Group also
engages with relevant regulators and other government authorities such as HMRC
on specific matters. Also, and as described in the strategic report, 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. These issues, as they arise, can be significant
and where appropriate, provisions for any potential redress, legal and
administration costs, and related tax implications, 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 (2024: £nil).
For further information, see the list of principal risks and uncertainties in
the risk and control management section.
10. 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 7.
Senior unsecured corporate borrowings
31 December 31 December
2025 2024
£'Million £'Million
Corporate borrowings: bank loans - 250.0
Corporate borrowings: loan notes 125.6 138.3
Senior unsecured corporate borrowings 125.6 388.3
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 31
December 2025 the undrawn credit available under this facility was £345.0
million (2024: £345.0 million).
· a Note Purchase Agreement for £25.6 million. The notes are
repayable in two 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 year the fully drawn £250.0 million bridging loan was repaid in
full and the facility closed.
The combined drawn carrying value of the senior unsecured corporate borrowings
as at 31 December 2025 is £125.6 million (2024: £388.3 million). The Group
is required to comply with financial covenants that are linked to (i) balance
sheet leverage, (ii) total FUM, (iii) a minimum level of net assets; and (iv)
our Solvency II ratio at the end of each annual and interim reporting period.
The Group has complied with these covenants throughout the reporting period.
There are no indications that the Group would have difficulties complying with
the covenants when they will be next tested at 30 June 2026.
Total borrowings
31 December 31 December
2025 2024
£'Million £'Million
Senior unsecured corporate borrowings 125.6 388.3
Senior tranche of non-recourse securitisation loan notes 215.9 128.5
Total borrowings 341.5 516.8
Current 55.5 41.3
Non-current 286.0 475.5
341.5 516.8
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 sale of securitised business loans to
Partners during the year, refer to Note 7.
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.
31 December 31 December
2025 2024
£'Million £'Million
Junior tranche of non-recourse securitisation loan notes 63.7 48.2
Senior tranche of non-recourse securitisation loan notes 215.9 128.5
Total non-recourse securitisation loan notes 279.6 176.7
Backed by
Securitised business loans to Partners (see Note 7) 269.8 170.7
Other net assets of SJP Partner Loans No.1 Limited 9.8 6.0
Total net assets held by SJP Partner Loans No.1 Limited 279.6 176.7
Movement in borrowings
Borrowings are liabilities arising from financing activities. The cash and
non-cash movements in borrowings over the year are set out below, with the
cash movements also set out in the consolidated statement of cash flows.
Senior Senior Total Senior Senior Total
unsecured tranche of securitisation borrowings unsecured tranche of borrowings
corporate loan notes corporate securitisation
borrowings borrowings loan notes
2025 2025 2025 2024 2024 2024
£'Million £'Million £'Million £'Million £'Million £'Million
Balance at 1 January 388.3 128.5 516.8 201.1 50.3 251.4
Additional borrowing during the year - 135.7 135.7 360.0 113.8 473.8
Repayment of borrowings during the year (262.7) (49.0) (311.7) (172.8) (35.3) (208.1)
Costs on additional borrowings during the year - (0.1) (0.1) (0.7) (1.0) (1.7)
Unwind of borrowing costs (non-cash movement) 0.4 0.8 1.2 0.9 0.7 1.6
Reclassification of prepaid loan facility expense to prepayments (0.4) - (0.4) (0.2) - (0.2)
Balance at 31 December 125.6 215.9 341.5 388.3 128.5 516.8
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 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
31 December 31 December 31 December 31 December
2025 2024 2025 2024
£'Million £'Million £'Million £'Million
Bank of Scotland 8.0 12.3 16.0 16.0
Investec 24.1 26.5 50.0 50.0
Metro Bank 6.7 10.6 20.0 35.0
NatWest 23.8 27.5 75.0 75.0
Santander 165.3 171.4 210.6 206.6
Total loans 227.9 248.3 371.6 382.6
The fair value of these guarantees has been assessed as £nil (2024: £nil).
11. Cash generated from operations
Year ended Year ended
31 December 31 December
2025 20241
£'Million £'Million
Cash flows from operating activities
Profit before tax for the year 1,335.2 1,049.1
Adjustments for:
Amortisation of purchased value of in-force business 3.2 3.2
Amortisation of computer software 4.2 22.4
Depreciation 20.8 23.4
Impairment of goodwill 4.8 10.3
Loss on disposal of property and equipment, including leased assets 1.0 4.1
Share-based payment charge 20.2 11.2
Interest income (224.5) (236.6)
Interest expense 28.9 36.4
Decrease in provisions (161.9) (39.8)
Exchange rate losses/(gains) 3.0 (0.2)
(300.3) (165.6)
Changes in operating assets and liabilities
Decrease in deferred acquisition costs 2.1 18.2
Decrease in investment property 522.0 218.0
Increase in other investments (29,849.2) (23,738.7)
Increase in investments in associates (0.3) (3.5)
Decrease/(increase) in reinsurance assets 3.2 (1.9)
(Increase)/decrease in other receivables (170.2) 310.3
Increase in insurance contract liabilities 47.6 22.6
Increase in financial liabilities (excluding borrowings) 22,049.9 17,868.1
Decrease in deferred income (47.9) (22.0)
Increase/(decrease) in other payables 520.7 (246.1)
Increase in net assets attributable to unit holders 7,283.3 4,163.0
361.2 (1,412.0)
Cash generated from/(used in) operations 1,396.1 (528.5)
12. 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
- Shares repurchased in buy-back programmes (4,590,083) (0.7)
At 31 December 2024 544,014,711 81.6
- Issue of shares 136,975 -
- Shares repurchased in buy-back programmes (17,039,551) (2.5)
At 31 December 2025 527,112,135 79.1
Ordinary shares have a par value of 15 pence per share (2024: 15 pence per
share) and are fully paid.
Included in the called-up share capital are 8,686,829 (2024: 4,876,364) shares
held in the Shares in trust reserve with a nominal value of £1.3 million
(2024: £0.7 million). The shares are held by the SJP Employee Benefit Trust
and the St. James's Place 2010 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 5,766,265 shares at 31
December 2025 and 2,135,521 shares at 31 December 2024. 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 1,028 shares at 31 December 2025 (2024:
1,034).
Share capital increases are included within the issue of shares line.
During the year, the Company repurchased and cancelled 17,039,551 shares
(2024: 4,590,083) for a total consideration of £188.1 million (2024: £32.9
million) and incurred transaction costs of £1.1 million (2024: £0.2
million). The cancelled shares, which had a nominal value of £2.5 million
(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.
The number of shares reserved for issue under options and contracts for sale
of shares, including terms and conditions, is included within Note 24 of the
IFRS financial statements in the St. James's Place plc Annual Report and
Accounts 2025.
Earnings per share
Year ended Year ended
31 December 31 December
2025 2024
£'Million £'Million
Earnings
Profit after tax attributable to equity shareholders (for both basic and 531.1 398.4
diluted EPS)
Million Million
Weighted average number of shares
Weighted average number of ordinary shares in issue (for basic EPS) 531.5 545.4
Adjustments for outstanding share options 6.3 3.6
Weighted average number of ordinary shares (for diluted EPS) 537.8 549.0
Pence Pence
Earnings per share (EPS)
Basic earnings per share 99.9 73.0
Diluted earnings per share 98.8 72.6
Dividends
The following dividends have been paid by the Group:
Year ended Year ended Year ended Year ended
31 December 31 December 31 December 31 December
2025 2024 2025 2024
Pence per share Pence per share £'Million £'Million
Final dividend in respect of 2023 - 8.00 - 43.8
Interim dividend in respect of 2024 - 6.00 - 32.8
Final dividend in respect of 2024 12.00 - 64.4 -
Interim dividend in respect of 2025 6.00 - 31.9 -
Total dividends 18.00 14.00 96.3 76.6
In respect of 2025 the Directors have recommended a 2025 final dividend of
12.00 pence per share. This amounts to £63.3 million based on the number of
shares in issue on 31 December 2025 and will, subject to shareholder approval
at the Annual General Meeting, be paid on 8 May 2026 to those shareholders on
the register as at 27 March 2026.
In addition, under the authority granted by shareholders at the 2025 Annual
General Meeting, the Directors have resolved to undertake:
· a final share buy-back programme in respect to 2025, committing
to purchase shares up to a maximum value of £103.9 million.
· an additional share buy-back programme to return capital to
shareholders following a release of the Ongoing Service Evidence provision,
committing to purchase shares up to a maximum value of £18.7 million.
These share buy-backs will commence in March 2026.
13. Related party transactions
Transactions with associates and non-wholly owned subsidiaries
Associates
Outstanding at the year-end were business loans of £11.0 million (2024:
£11.9 million) to associates of the Group. During the year £nil (2024: £8.9
million) was advanced and £1.8 million (2024: £4.3 million) was repaid.
Business loans to associates are interest-bearing (linked to the Bank
of England base rate plus a margin) and repayable in line with the terms
of the loan contract. Interest of £0.9 million was received during 2025
(2024: £0.6 million).
In addition, commission, advice fees and other payments of £12.3 million were
paid (2024: £10.0 million paid), under normal commercial terms, to
associates of the Group. The outstanding amount at 31 December 2025 was £1.0
million payable (2024: £0.7 million payable).
Non-wholly owned subsidiaries
Commission, advice fees and other payments of £4.6 million were paid (2024:
£4.3 million paid), under normal commercial terms, to non-wholly-owned Group
companies. The outstanding amount at 31 December 2025 was £0.4 million
payable (2024: £0.5 million payable).
Transactions with key management personnel
Key management personnel have been defined as the Board of Directors and
members of the Group Executive Committee. The remuneration paid to the
Board of Directors of St. James's Place plc is set out in the Directors'
remuneration report, in addition to the disclosure below.
The Directors' remuneration report also sets out transactions with the
Directors under the Group's share-based payment schemes, together with details
of the Directors' interests in the share capital of the Company.
Compensation of key management personnel is as follows:
Year ended Year ended
31 December 31 December
2025 2024
£'Million £'Million
Short-term employee benefits 12.9 10.2
Post-employment benefits 0.5 0.6
Share-based payments 6.3 (0.7)
Total 19.7 10.1
The total value of Group FUM held by related parties of the Group as at 31
December 2025 was £17.7 million (2024: £25.2 million). The total value of
St. James's Place plc dividends paid to related parties of the Group during
the year was £0.1 million (2024: £0.2 million).
Commission, advice fees and other payments of £nil (2024: £1.3 million) were
paid, under normal commercial terms, to St. James's Place advisers who were
related parties by virtue of being connected persons with key management
personnel. The outstanding amount payable at 31 December 2025 was £nil (2024:
£0.1 million).
14. Non-statutory accounts
The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 2025 or 2024 but is derived
from those accounts. Statutory accounts for 2024 have been delivered to the
registrar of companies, and those for 2025 will be delivered in due course.
The auditors have reported on those accounts; their report was (i)
unqualified, (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 of the Companies Act 2006.
15. Annual Report
The Company's Annual Report and Accounts for the year ended 31 December 2025
is expected to be posted to shareholders by early April. Copies of both this
announcement and the Annual Report and Accounts 2025 will be available to the
public through the Company's website at www.sjp.co.uk (http://www.sjp.co.uk) .
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
defines each APM, explains why it is used and, if applicable, details 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 page 211 of the St. James's Place plc Annual Report and Accounts
solvency, is central to our business. By removing the liabilities which are 2025.
1. Adjustment to remove the matching client assets and the liabilities fully matched by assets, this presentation allows the reader to focus on the
as 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.
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 is 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 NAV per share is calculated as the EEV net assets divided Total embedded value provides a measure of total economic value of the Group, Not applicable.
by the year-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 NAV per share is calculated as the IFRS net assets Total IFRS net assets provides a measure of value of the Group, and assessing Not applicable.
divided by the year-end number of ordinary shares. the IFRS NAV per share allows analysis of the overall value of the Group by
share.
Financial-performance-related APMs
APM Definition Why is this measure used? Reconciliation
to the financial statements
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 section 2.2 of the financial review and also see Note 3 to
Solvency II net assets adjusted as follows: tax. By contrast, dividends can only be paid to shareholders from the consolidated financial statements.
appropriately fungible assets. The Board therefore uses the Cash results to
1. The movement in deferred tax is excluded, except that in relation to the 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 year, the Underlying cash result is particularly useful for monitoring the
expected long-term rate of cash emergence, which supports dividends
3. Other changes in equity, such as dividends paid in the year and 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 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 As Underlying cash is the best reflection of the cash generated by the Not applicable.
of 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 A discounted cash flow valuation methodology, assessing the long-term economic Both the IFRS and Cash results reflect only the cash flows in the year. See Note 3 to the consolidated financial statements.
value of the business. However, our business is long-term, and activity in the year 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 year, which is
set out by the Chief Financial Officers (CFO) Forum in 2004, and amended for the aim of the EEV methodology.
subsequent changes to the principles, including those published in April 2016,
following the implementation of Solvency II.
EEV operating profit The EEV operating profit reflects the EEV profit with an adjustment to strip Within the EEV, many of the future cash flows derive from fund charges, which See Note 3 to the consolidated financial statements.
out the impact of stock market and other economic effects during the year. change with movements in stock markets. Since the impact of these changes is
typically unrelated to the performance of the business, we believe that the
Within EEV operating profit is new business contribution, which is the change EEV operating profit (reflecting the EEV profit, adjusted to reflect only the
in embedded value arising from writing new business during the year. expected investment performance and no change in economic basis) provides the
most useful measure of embedded value performance in the year.
Policyholder and shareholder tax Shareholder tax is estimated by making an assessment of the effective rate The UK tax regime facilitates the collection of tax from life insurance Disclosed as separate line items in the statement of comprehensive income.
of tax that is applicable to the shareholders on the profits attributable to policyholders by making an equivalent charge within the corporate tax of the
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 consolidated statement statements should include the tax incurred on behalf of policyholders in our
of comprehensive income the full title of this measure is 'profit before tax UK life assurance company. Since the policyholder tax charge is unrelated to
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, We are focused on managing long-term growth in controllable expenses. Full details of the breakdown of
and our Academy.
expenses is provided in the databook
sjp.co.uk/full-year-results-2025-databook
(http://www.sjp.co.uk/full-year-results-2025-databook)
Change in APM disclosures
As part of the simplification of our financial reporting, we have moved most
European Embedded Value (EEV)-based APMs out of the Annual Report &
Accounts and into the databook, which is available here:
sjp.co.uk/full-year-results-2025-databook
(http://www.sjp.co.uk/full-year-results-2025-databook) .
Responsibility Statement of the Directors in respect of the Annual Financial
Report
The Directors confirm to the best of their knowledge that:
· The financial statements have been prepared in accordance with
UK-adopted International Accounting Standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards
and give a true and fair view of the assets, liabilities, financial position
and profit for the Company and the undertakings included in the consolidation
as a whole; and
· Pursuant to Disclosure and Transparency Rules Chapter 4, the
Directors' Report and Strategic Report of the Company's Annual Report and
Accounts 2025 includes a fair review of the development and performance of the
business and the position of the Company and the undertakings included in the
consolidation taken as a whole, together with a description of the principal
risks and uncertainties faced by the business.
On behalf of the Board
Mark FitzPatrick
Chief Executive Officer
24 February 2026
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on this announcement (or any other website) is
incorporated into, or forms part of, this announcement.
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