Jarvis Securities plc (LON:JIM) has announced its interim results for the six months ended 30 June 2021.
Highlights
· £1,297,166 (19.0%) increase in revenue versus six months to 30 June 2020
· £1,001,861 (27.9%) increase in profit before tax versus six months to 30 June 2020
· Cash under administration has increased 17.3% versus 30 June 2020
· EPS increased to 8.45p (2020: 6.67p)
Chairman’s statement
I am delighted to present a set of results that I believe demonstrates the last year was not a unique period relating to extraordinary market conditions, but evidence of the growth that the business has made, and continues to make, over the past five years.
Trading conditions have been favourable, but we have not seen the extreme volatility and accompanying spikes in daily volumes that occurred in 2020. Share prices have been relatively stable, and the accompanying volumes are at a level I expect to be the considered normal for the foreseeable future. We have been able to capture additional revenue through growth of the business, and as the figures demonstrate the operational gearing within the business allows for much of this revenue to translate into profit. We have onboarded two new institutional clients during the period, our existing institutional clients continue to grow organically, and we have a healthy pipeline of enquiries for our outsourcing, custody and settlement services.
Operationally we have proved resilient in dealing with the various restrictions COVID has placed on businesses and as we move into the next phase of removing restrictions, I am certain we will continue to deal well with the changing circumstances.
Finally, during the period we realised a substantial sum of cash through the sale of treasury shares which had been purchased over several years. We have also, since the period end, filed the court’s approval to cancel the share premium account of Jarvis Securities with Companies House. Once registered, this will have the effect of increasing the distributable reserves and gives additional flexibility for the board to return cash to shareholders.
As always, I would like to thank all staff for their continued hard work.
Key performance indicators (KPI)
The key performance indicators (KPIs) are designed to give stakeholders in the business a more rounded view of the Group’s performance. Further details on the KPIs and their measurement can be found in the last Annual Report. A selection of KPIs and the Group’s results to the interim period for these are detailed below. These results have been annualised from the position at 30 June 2021 where measurement over a year is required.
| KPI: | 30/6/21 | 30/6/20 | Target |
| Profit before tax margin | 57% | 53% | 20% |
| Revenue per employee (annualised) | £257,917 | £227,574 | to increase |
