LONDON (dpa-AFX) - Wealth management firm St. James's Place plc (STJ.L) reported Wednesday that its fiscal 2023 IFRS profit before tax was 439.6 million pounds, significantly higher than last year's 2.8 million pounds.
On IFRS basis, loss before shareholder tax was 4.5 million pounds, compared to prior year's 503.9 million pounds profit. Loss after tax was 9.9 million pounds, compared to profit of 407.2 million pounds a year earlier. Loss per share was 1.8 pence, compared to profit of 74.3 pence last year.
The company said it has established a provision of 426.0 million pounds pre-tax or 323.7 million pounds post-tax for potential client refunds linked to the historic evidencing and delivery of ongoing servicing.
The Cash result plunged to 68.7 million pounds from prior year's 410.1 million pounds, significantly impacted by the Ongoing Service Evidence provision.
Underlying cash result was 392.4 million pounds, compared to last year's 410.1 million pounds.
On European Embedded Value or EEV basis, loss before tax for the year was 1.39 billion pounds, compared to last year's 510.8 million pounds profit, benefitted from a positive investment return variance.
The EEV operating profit before exceptional items for the year was 1.04 billion pounds, compared to 1.59 billion pounds a year ago.
Funds under management was 168.2 billion pounds, up 13 percent compared to the beginning of the year at 148.4 billion pounds.
Further, the Board proposed a final dividend of 8.00 pence per share, down from last year's 37.19 pence per share. This makes a total of 23.83 pence per share for the full year, down from last year's 52.78 pence per share.
Looking ahead, Mark FitzPatrick, Chief Executive Officer, said, 'In the near-term, we expect the industry outlook to remain challenging in 2024 given the pressures consumers continue to face. The near-term environment notwithstanding, the longer-term structural opportunity for the financial advice industry is hugely attractive.'
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