SJP's distribution business falls into red in 2013

St James's Place (SJP) saw its distribution business tumble into the red last year owing to the cost of hiring more advisers, and a £5.5m FSCS levy.

SJP reported operating profits up 26% to £462.7m for 2013, a year in which it said it added 45,000 new clients. The key driver of the improved result was the increase in income derived from higher funds under management, the firm said. Net inflows of funds under management were up 28% for the period to £4.3bn. Total funds under management rose 27% to £44.3bn. The unit trust business recorded profits before shareholder tax of £53.9m, compared to £33.5m in 2012. However the distribution business made a loss for the year of £6.1m, compared to a 2012 profit of £5.3m. The result ...