By Simon Jessop
LONDON (Reuters) - Wealth manager St James's Place posted a forecast-beating rise in funds under management in the first half of the year after record second-quarter net inflows, sending its shares up 6 percent to a two-month high.
The group has benefited from strong demand for its face-to-face advice from savers looking to better invest their money amid a number of changes to the pensions and savings system, and said on Wednesday the trend had continued since January.
"Whilst the UK's decision to leave the EU has created a period of economic uncertainty ... the challenges and responsibilities that many people face when considering how to manage their wealth, and the ever-changing tax considerations, remain," Chief Executive David Bellamy said in a statement.
Bellamy said the group had seen no negative impact from the June 23 vote and would be looking for opportunities to hire staff and expand its network of advisers as the industry fallout becomes clearer.
"Our stated objective is to grow the business between 15 and 20 percent per annum and since the 24th of June, our business has continued very much in line with those medium-term objectives," Bellamy told Reuters.
The company posted net inflows of 3.1 billion pounds, up 15 percent from the previous year and beating a company-supplied consensus forecast of 2.7 billion, helped by a record 25 percent rise in inflows in the second quarter.
That pushed total funds under management to 65.6 billion pounds and cash reserves to 94.4 million, comfortably beating consensus estimates of 84.9 million and helping underpin a 15 percent increase in the interim dividend.
By 0713 GMT the stock was up 6 percent at 937 pence, making it the leading gainer in the blue-chip FTSE 100.
Calling the results a beat across almost all metrics, Shore Capital analyst Eamonn Flanagan reiterated a "buy" recommendation and said he expected the market to respond favourably to "overall excellent delivery".