SJP Asia posts £13m loss while CEO Bellamy quits after 26 years
David Bellamy, the long-standing chief executive at St James’s Place (SJP), has decided to step down from the board at the end of 2017 after 26 years as an executive, the last 11 of which he has served as chief executive.
The shock move was announced via a statement by the company as it posted its annual results, which included a £13.2m (US$16.4m) loss by the group’s Asian business. Andrew Croft will succeed Bellamy as chief executive and Craig Gentle, currently chief risk officer, will join the board as chief financial officer. Both moves are subject to regulatory approval.
Bellamy will remain with the group in an advisory capacity and will take on the role of non-executive chairman of the company’s new international operations, it said.
Sarah Bates, chairman, said: “Under David’s leadership, St James’s Place has gone from strength to strength. Client funds have more than quadrupled to over £75bn, the partnership has grown consistently to over 3,000 advisers today, and the company has become an established member of the FTSE 100.”
Bellamy, said that his time at SJP had been “an incredible journey” and it was “a great privilege” to have led St James’s Place through a period of “great transformation and success” over the last 11 years.
The company announced that its losses in the Asian business nearly doubled in the year to 2016 to £13.2m, compared to £7m the previous year.
Overall, SJP said that its results reflect the “underlying strong business performance over the year, but pointed to a number of particular factors which have also impacted the results.
Its statement read:
- Our required contribution to the Financial Services Compensation Scheme (FSCS) was again at an elevated level, negatively impacting the results by £17.2m pre-tax (£13.7m post-tax) compared with a £20.1m pre-tax (£15.9m post-tax) for the prior year.
- During the year we have continued to invest strongly in our future with a current year impact of £34m pre-tax (2015: £17.2m pre-tax). We are very pleased with the success of our Academy, and both the Asia operations and our new DFM offering, Rowan Dartington, are developing well.
- The continuation of our back office infrastructure investment cost £20.9m for the year compared with £18.1m for the prior year.
- It is noted at the half year we have been voluntarily reviewing charges on two small cohorts of business: waiving exit charges at the minimum retirement age where they existed on some older pension contracts (written before July 1999); and reassessing risk charges on a reviewable protection contract. The combined impact of these actions is a negative one-off £8.2m pre-tax in the cash and IFRS results, which rises to £13.6m pre-tax in the EEV result when the reduction in future charges is also fully capitalised.