It said gross inflows were £17bn, down from 2021’s £18.2bn.

Net inflow of funds under management was £9.8bn, falling from £11bn, while net income from funds under management was £607.7m, up from £577.5m.

Andrew Croft, chief executive said: “2022 presented a more challenging backdrop as UK consumers faced the reality of sharply rising inflation, macroeconomic and geopolitical uncertainty, and investment market volatility.

“Despite this, we achieved the second-best year for new business flows in our history as our advisers performed admirably in helping clients feel confident in their finances and remain on track for the future.”

While investment markets recorded negative returns over the year, he said the strength of the firm’s net inflows meant that funds under management ended the period at £148.4bn, although that was slightly down on the previous year’s £154bn.

He said St James’s continued to manage its controllable cost base well, containing growth to 5% as planned.

The final dividend will be 37.19 pence per share, making for a full year dividend of 52.78 pence per share, up around 2%.

Mr Croft said: “It remains clear to us that the demand for trusted, face-to-face advice is only getting stronger, so with a growing partnership and a business in great shape, we continue to be well positioned to capitalise on our market opportunity and deliver against our 2025 ambitions.”

He said 2023 has continued in much the same way that 2022 ended, but he noted indicators that UK inflation may have peaked and that there are some signs of optimism for the direction of economies and investment markets worldwide.

“As we stated in our new business update in January, a sustained recovery in such indicators would naturally be conducive towards improving consumer sentiment, activity levels and of course funds under management, as 2023 unfolds.”