Full Year 2025 St James's Place PLC Earnings Call(Q&A Session) Transcript
Key Points
- St James's Place PLC (STJPF) reported a 3% year-on-year increase in underlying cash result to GBP462 million, which was 4% ahead of consensus.
- The company plans to return 50% of the underlying cash result to shareholders through dividends and buybacks, totaling GBP313 million for 2025.
- The implementation of a new charging structure was successful, enabling the launch of Polaris Multi-Index, which reached over GBP1 billion in funds under management within two months.
- St James's Place PLC (STJPF) is on track to remove around GBP100 million per annum from its addressable cost base by 2027 through its cost and efficiency program.
- The company plans to increase its payout ratio to 70% of the underlying cash result from 2026, reflecting confidence in its business strength and prospects.
- The number of advisers declined by 0.4% in the second half of 2025, with departing advisers having significantly below-average productivity.
- There are concerns about the potential threat from AI-led financial advice platforms, which could impact future growth and pricing power.
- Complaints remain high relative to historical levels, although they are stabilizing, putting pressure on the complaints team.
- The company faces challenges in adapting its tech stack to incorporate AI models due to potential legacy technology issues.
- There is uncertainty about the impact of regulatory changes, such as D2C simplified advice, on the company's business model.
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Thank you, and good morning, everyone, and thank you for joining us. Unfortunately, Caroline is unable to be with us this morning due to a family bereavement. Instead, I'm joined by Charles Woodd, our Finance Director.
Before we open for questions, I'd like to briefly reflect on a year of strong delivery and execution for St. James's Place. We delivered growth in new business, growth in funds under management and growth in underlying cash result, while at the same time, delivering strong returns for our clients. Drawing out some of the results, which are new today, the underlying cash result of GBP462 million, up 3% year on year and 4% ahead of consensus.
Underlying cash basic EPS of 87p per share, up 6% year on year. We're returning 50% of the underlying cash result to shareholders through ordinary dividends and buybacks and a total of GBP313 million to be returned to shareholders for 2025.
Alongside delivering a strong operational and financial
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