St James's Place, the Cirencester-based wealth manager, has reported a decline in pre-tax profits for the first half of the year, with net inflows dropping to £2.7 billion from £3.8 billion in the same period last year. The FTSE 100 group attributed the slowdown to impending changes to the UK pensions tax regime, which will bring pensions within the scope of inheritance tax from next April.
Financial Performance Highlights
Gross inflows remained flat at £10.5 billion, while funds under management retention edged up slightly to 95.4 per cent from 95.3 per cent. Adjusted profit after tax fell to £224.4 million, down from £235.8 million in 2025. The company's share price declined on Wednesday following the announcement.
Chief executive Mark FitzPatrick expressed satisfaction with the first-half performance, stating: "We delivered good operating and financial performance while continuing to grow our customer and adviser base, and made further progress against our strategic priorities." He noted that advisers had supported clients through a complex and evolving environment, with consumers navigating economic uncertainty and impending changes to the retirement savings landscape.
Impact of Pensions Tax Changes
The group explained that the forthcoming inclusion of pensions in inheritance tax calculations is prompting savers to withdraw funds before the 40 per cent levy takes effect. This shift contributed to the reduced net inflows during the period. The changes, set to be implemented from April 2027, are expected to reshape financial planning strategies across the UK.
Adviser numbers at St James's Place stood at 4,951 at the end of the period, while the client base reached 1,064,000. The company continues to invest in its proposition, combining personal adviser relationships with technological solutions.
Strategic Outlook
Mr FitzPatrick highlighted the long-term opportunity for financial advice in the UK, which remains under-penetrated. "As the industry evolves, clients will demand trusted advice, high-quality service, strong investment solutions and modern technology. St James's Place combines the personal relationships of a local adviser with the scale, expertise and security of the UK's leading financial advice business," he said.
The board declared an interim ordinary dividend of 6 pence per share. Despite the profit dip, the company remains confident in its ability to capture growth opportunities amid a changing regulatory environment.
