St James's Place PLC (LSE:STJ) rocketed higher as half-year results showed net inflows of £1.9 billion and a modest drop in its customer redemptions.
The wealth manager has been hit by a slew of overcharging complaints, which saw it take a £426 million provision last year wiping out profits.
Costs of implementing a new charging structure cost it £25 million in its latest half-year but there was no increase in the overall provision.
Gross inflows in the six months to the end of June 2024 were £8.5 billion or up by £500 million, while net inflows dropped to £1.9 billion (£3.4 billion), which was better than markets had expected.
Funds under management hit a record £181.9 billion ( £168.2 billion: Dec 2023) while the client base rose by 3% 988,000.
Mark Fitzpatrick, chief executive, said a plan to save £100 million had also been implemented with the benefits to come through from 2027 onwards.
“I am confident that the approach we have set out following our business review will enable us to achieve annual FUM growth in the mid-to-high single digits over time.
“While near-term profit growth will reflect the impact of transitioning to our new charging structure as announced last October, we expect to see the Underlying cash result accelerate in 2027 and beyond, doubling between 2023 and 2030. “
Pretax profits rose to £577 million (£385 million) with underlying profits for the six months at £222 million (£216 million).
Shares rose by 19% to 663p.