Jarvis Securities plc (LON:JIM) has announced its results for the year ended 31 December 2020.
· 43% increase in profit before tax
· 8% increase in year on year interest income
· 69% growth in interim dividend per share (excludes 2019 special dividend)
· 42% increase in EPS
Few would have predicted how 2020 would unfold with Brexit and the COVID pandemic impacting industries in different ways. For stockbrokers trade volumes have increased, but it would be an oversimplification to attribute these excellent financial results to this alone. At the beginning of 2020 it felt like we were on the cusp of volumes returning to normal, and clearly they have exceeded that prediction. Over the past few years the business has continued to maintain its organic growth and commercial success as the following statement will disclose.
I expect our trade volumes to continue at higher levels than we experienced in 2020 and the years leading up to that. I also see no signs of organic growth slowing as we move into 2021 with a healthy pipeline of potential new outsourcing contracts. Client numbers and cash under administration continue to increase, we are seeing profitable growth in international settlement and our relationship with Primary Bid.
We undertook a 4:1 share split during the year to facilitate and encourage more liquidity in Jarvis shares and encourage a wider shareholder base. The business model remains unaltered – Jarvis will continue with a strategy of profitable organic growth whilst improving internal efficiencies. At present, many of our staff are working from home, which, whilst presenting some challenges also creates additional opportunities to review the way we operate where office space can be a restricting factor. I am proud of the fact we have been able to maintain our high standard of client service to both our retail and commercial clients in spite of the disruption caused by COVID. Our IT infrastructure has been constantly monitored and tailored to cope with the increased trade volumes and different working practices and our phone lines have remained open.
Historically the dividend policy has been relatively formulaic with a fixed proportion of profit after tax being retained within the business to maintain our level of FCA capital adequacy or re-investment where required. This retention accumulates and has then led to the payment of special dividends. We are required to retain regulatory capital far in excess of the normal working capital required to run the business, but in the absence of requirements for investment in the business it is the Directors’ intention that cash will be paid out in dividends when available. The sale of Treasury shares has also added to the reserves available to be distributed over the period and this is likely to continue which should also increase the free float or liquidity of shares in the market.
As always, I would like to thank Jarvis staff for their continued hard work.
Annual General Meeting
The Company will today dispatch to shareholders its Annual Report and Accounts for the year ended 31 December 2020, together with a notice convening the Annual General Meeting (“AGM”), to be held at the Company’s offices on Thursday 22rd April at 9am. The Annual Report and Accounts and Notice of AGM will also be available from the Company’s website, www.jarvissecurities.co.uk .
During the Covid-19 pandemic, the UK Government has introduced new laws to prevent individuals engaging in non-essential travel and attending public gatherings of more than six people, save where essential for work purposes. Having taken legal advice, the Board has concluded that, in these exceptional circumstances and for as long as the current restrictions remain in place, shareholders should not be permitted to attend the Annual General Meeting but instead will be asked to vote by proxy by appointing the Chairman of the meeting as their proxy. The Board has arranged for three persons to be physically present at the Annual General Meeting to meet the quorum obligations under the Company’s articles of association but other than these individuals, no other shareholders will be allowed to attend.