St. James’s Place made the decision to lower its dividend in preparation for projected reduced profit growth, attributed to upcoming modifications to its charging system.
Dividend Adjustment Details
The financial services firm announced a final dividend of 8.0 pence per share, resulting in a full-year distribution of 23.83 pence, falling short of the anticipated 51.42 pence from a company-collected consensus.
CEO Statement
Mark FitzPatrick, newly appointed Chief Executive since December, expressed, “A combination of the provision we have established and an expected decrease in the level of profit growth in the next few years as we transition to our new charging structure, reduces our ability to invest for long term growth in our business over the next few years.”
Future Distribution Strategy
Moving forward, St. James’s Place plans to distribute 50% of the full-year underlying cash result to shareholders as dividends—down from the previous 70%. It predicts a consistent payout of 18.0 pence per share for 2024, 2025, and 2026, with potential growth as earnings improve in 2027.
