St James's Place PLC shares climbed over 4% after the wealth manager reported higher profits and an increase in shareholder returns after what it called a year of strong delivery.
The FTSE 100 group posted a post-tax underlying cash result of £462.3 million for 2025, up 3% from the previous year. Underlying cash earnings per share rose 6% to 87p.
Funds under management reached a record £220 billion at the year end, supported by strong gross and net inflows from a client base of just over one million.
The rollout of SJP's new charging structure was completed in the year, with a cost and efficiency programme said to remain on track. A further £18.7 million was released from its historic ongoing service evidence provision, taking total releases in 2025 to £82.1 million.
A dividend of 18p was declared, with a £104 million share buyback announced, plus another £19 million after the provision release.
Chief executive Mark FitzPatrick said: "I am pleased to report a year of significant progress for St. James's Place."
Looking ahead, the board intends to increase total annual shareholder distributions to 70% of the underlying cash result from 2026 onwards, split between dividends and buy-backs.
The shares, which earlier this month hit a four-year high above 1,550p before dropping back on a recent wave of AI concerns, were up 4.9% to 1,321.5p on Wednesday morning.
Broker Peel Hunt said the underlying cash result, up 3% to £462 million, beat consensus expectations of £446 million, with EPS also coming in above forecasts.
"Consensus expectations for FY26 are for an underlying cash result of £414m. Risk to this looks to lie to the upside given the performance delivered."
Panmure Liberum said profits were ahead of expectations and the new returns guidance came earlier than predicted.
"The market had a wobble about AI and how it might change the world of financial advice, but how many actually know what questions to ask, let alone can judge the value of the answers given," said analyst Rae Maile.
"St James’s Place has the leading position in advice-led wealth management in the UK, and we do not see that position weakening."
** UPDATE: Adds broker comments **