SJP turns £7.5m loss into £6m profit in 2010

The distribution unit of wealth manager St James's Place (SJP) turned a huge loss in 2009 into a significant profit last year after new business increased by a third.

The 32% growth in new business during 2010 increases the income the distribution company receives but has no impact on fixed costs, it says. This resulted in a profit of £5.8m on an IFRS basis (before shareholder tax) compared with a loss for the prior year of £7.5m. SJP says over the course of an 'economic cycle' it would expect to make a profit on distribution activity, but it adds the result will vary between years. It says the profit would have been £1.3m higher had it not been for the proportion of the FSCS Keydata levy charged to this company. Across the vertically-integra...