25th Feb 2014 08:46
LONDON (Alliance News) - Investment manager St. James's Place PLC Tuesday said it is in "advanced talks" to acquire an adviser business in Asia, as it reported a 42% increase in annual profits.
In a big year for St. James's Place, as former majority shareholder Lloyds Banking Group PLC sold off its stake in the business, the FTSE 250 company reported a GBP190.7 million profit before shareholder tax for calendar 2013, compared with the GBP134.6 million in 2012, driven by a surge in both fee and commission income and investment return.
Together, those items resulted in a 60% increase in net income, which amounted to GBP6.85 billion. After investment contract benefits, which cost GBP5.45 billion, and other expenses, that left a GBP461.2 million pretax profit.
"I am confident that the growth we achieved in 2013, in both new investments and partner numbers maintains the momentum in our business and bodes well for our future growth," David Bellamy, chief executive, said in a statement.
St. James's Place increased its dividend by 50% to 15.96 pence and said it expects to increase it by 30-40% in 2014.
In addition, the investment manager said its Asian acquisition target is a "well-respected adviser business" specialising in giving financial advice to expatriates in the Far East. It has an existing team of advisers in Singapore, Hong Kong and Shanghai. Bellamy said an agreement is "close".
St. James's Place said it expects the acquisition to be finalised in the first few months of 2014.
St. James's Place shares were leading the FTSE 250 Tuesday morning, quoted at 822.72 pence, up 28.22 pence, or 3.6%.
By Samuel Agini; [email protected]; @samuelagini
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