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Research Tree provides access to ongoing research coverage, media content and regulatory news on ST JAMES'S PLACE PLC. We currently have 14 research reports from 1 professional analysts.
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ST JAMES'S PLACE PLC
ST JAMES'S PLACE PLC
Panmure Morning Note 01-11-2016
01 Nov 16
Yesterday the management team at SJP gave a presentation that covered areas such as ‘people & culture’, ‘clients & value’ and ‘partnership & development’. It was all good stuff but the key message that came across loud and clear was that the SJP will continue to grow 15-20% a year driven by the inflow of new Partner and multi adviser businesses. It’s a highly impressive business that is hard to fault and one that even performs in difficult investment markets. The higher than expected EEV NAV of 838p/share net of goodwill at 30 September has enabled us to maintain our Buy recommendation and increase our target price to 1145p from 1078p previously.
Panmure Morning Note 25-10-2016
25 Oct 16
St James’s Place has reported another good trading update for the 3 months to 30 September. The EEV NAV at 30 Sept at c850p per share (30 Sept 2015: 675p and 30 June 2016: 792p) and 838p/share net of the 12.33p/share interim dividend, well ahead of our (and consensus) 816p/share driven primarily by investment performance. The FUM at 30 Sept. was £71.4bn (Q3 2015: £54.5bn) was helped by very strong gross inflows of £2.8bn (+21%) and net inflows of £1.66bn (+12%) that were slightly ahead of consensus forecast at £1.55bn. Whilst FUM have benefitted from weaker Sterling, there has been no other impact from Brexit (other than the share price). The outlook statement was upbeat as usual highlighting the increasing need and demand for advice. We maintain our Buy recommendation and view the current share price as a buying opportunity.
Panmure Morning Note 27-07-2016
27 Jul 16
St James's Place has delivered a solid set of interim results that in most areas were at least in line with expectations. The underlying IFRS pre-tax profit was £73.8m (+1%) which compared to our close-to-consensus forecast at £89.4m. The figure reflects an unexpected £8.2m IFRS pre-tax charge for removing exit charges on older pension contracts (£13.6m pre-tax EEV impact). The EEV Operating profit was therefore £284m (+7%) that compared to our £308.3m forecast. A larger investment variance helped increase the EEV NAV at 30 June to 791.9p/share (30 June 2015: 683.7p/share & 31 March 2016: 760p) which compared to our 770p/share forecast. The interim dividend has increased to 12.33p/share (+15%) well ahead of our top of the range 12.01p/share forecast. There has been no negative impact from Brexit, implying that the fall in the share price has been overdone with sales not impacted. Buy, Target Price 1,078p
Panmure Morning Note 19-07-2016
19 Jul 16
St James’s Place will report its H1 2016 Results on Wednesday 27th July. We are forecasting Gross inflows of £4.9bn, FUM at £65.1bn (31 Dec 2015: £58.6bn) EEV Operating profit at £308.3m (+6.6%) and Underlying IFRS pre-tax profit at £89.4m (+22.6%). We also anticipate an underlying cash result of £91.9m (+8.2%) helping drive an increase in the dividend of 12% to 12.0p per share. Naturally we would expect considerable focus on the outlook statement post Brexit but we suspect that it will still be too soon for the company to talk meaningfully about its likely impact. The shares are trading at 1.05x 2016F P/EEV multiple which we view as too low given the new business profit profile along with a decent 3.8% dividend yield. We have trimmed our target price to 1078p/share from 1146p previously to reflect a lower P/EEV NAV multiple of 1.4x following Brexit but maintain our Buy recommendation
14 Stocks due a Referendum Bounce
21 Jun 16
We have now entered the third and decisive stage of the UK’s EU referendum campaign. The launch of campaigning on 15 April saw the beginning of stage one as momentum was captured by the Remain campaign. A series of economic analyses identified the referendum as a risk event damaging to household finances and proved key to a rebound in Sterling. This momentum was recast as the UK entered stage two during a 24-hour period on 26 May. The net migration numbers for 2015 (333,000) were released and the government ceased to be supported by the Civil Service as a result of purdah. This momentum then sat with Leave until 16 June when a combination of the murder of the Labour MP Jo Cox and the third and final phase of campaigning got underway, which is set to benefit the status quo and the better organised and funded campaign – in this case Remain.
Panmure Morning note 26-03-2016
26 Apr 16
St James’s Place has delivered a good Q1 2016 trading update. The record Q4 performance (gross inflows of £2.52bn) continued into Q1 gross inflows of £2.45bn (Q1 2015: £2.1bn). Net inflows at £1.36bn (Q1 2015: £1.3bn) were equally impressive leading record FUM of £62.0bn (31 Dec 2015: £58.6bn) although this figure included £1.26bn from the Rowan Dartington acquisition for the first time. The EEV NAV at 31 March 2016 was 760p/share (31 Dec 2015: 737p/share) or 740p ex the final dividend payable in May, which compared to our in line with consensus forecast of 745p/share. With the polls suggesting a stay in Brexit vote with the possible positive impact on equity markets, in our view SJP’s shares look ‘good to go’. A current valuation at EV plus 2x new business profit is way too low in our view and a great buying opportunity. We maintain our Buy recommendation but increase our target price to 1146p/share from 1125p previously.
VPC Speciality Lending Investments PLC – sticking to your knitting pays dividends
05 Dec 16
A 25% discount on a dividend paying vehicle suggests either (a) lack of belief in the NAV, (b) lack of belief in the dividend, (c) concerns over future delivery, (d) a shareholder’s base not normally exposure to “closed end structures” or (e) some combination of (a) to (d). We had a first meeting with the management team and London representative of VPC Speciality Lending to try to better understand why the share price had fallen quite so much.
N+1 Singer - Grainger - Final results in line, further progress on PRS investment pipeline
01 Dec 16
Grainger has reported FY16 final results this morning with key NNNAV and recurring PBT metrics in line with our forecasts. Sales performance and rental income growth was strong in H2, as previewed in the positive FY trading update driving our 19% PBT upgrade in early October (11/10). The PRS investment pipeline continues to grow now standing at £389m secured and £347m in legals as Grainger pursues an £850m investment target by 2020. A 3.05p final dividend is in line with the revised policy to distribute 50% net rental income. The shares continue to trade on a significant, and unwarranted, 20%+ discount to NNNAV. We reiterate our BUY recommendation.
Better Capital – A tale of two funds
05 Dec 16
Our gut feel on the results is that BCAP’s Gardner disposal feels viable (albeit as a late Q1 transaction). Post Gardner, the exit profile for BCAP’s portfolio is slanted towards the years 2018/19 and not earlier; we view the market’s current pricing as cautious (14% disc to our estimate of FV). In contrast, BC12’s more consumer facing portfolio remains a work in progress and may well offer further disappointment before turning a corner; the market valuation (51% discount to NAV) is cautious but probably fair given the difficulties.
Meeting near-term headwinds
06 Dec 16
In its trading update IFG reported that performance has been in line with management expectations. The cooling effect of market uncertainty on growth in James Hay and financial advice client numbers, together with the impact of low interest rates, remain a near-term head wind for revenues. Even so, with Saunderson House continuing to increase profits, IFG expects to match 2015 earnings. The long-term growth opportunity presented by an ageing population and pension freedoms remains in place and to address this IFG is continuing investment to enhance its service and increase operational gearing.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
05 Dec 16
As we mentioned in our 18 November 2016 note, a continuation vote was expected to be announced before the end of 2016. The announcement last Friday included details of the continuation vote, and in particular, a recommendation by the Directors to replace the June 2015 strategy of selling non-core assets and developing the core projects, with a new strategy of an orderly sale of the Company’s assets, with a target of selling all assets by 31 December 2019 and a distribution policy for returning monies to shareholders following disposals. Alongside these recommendations, there are proposed changes to the remuneration for the investment manager.