Jarvis Securities plc (LON:JIM) has announced its interim results for the six months ended 30 June 2020.
· £1,606,681 (30.8%) increase in revenue versus six months to 30 June 2019
· £1,202,967 (50.3%) increase in profit before tax versus six months to 30 June 2019
· Cash under administration has increased 23.0% versus 30 June 2019
I wrote in my statement a year ago that I thought lower trading activity due to lack of clarity over the UK’s Brexit position would not stay at the lower end of the spectrum indefinitely, and once volumes returned to the market we would be well positioned to capture financial benefits. Admittedly, the catalyst for increased volume may not have been solely Brexit related, but the second part of the comment has proven to be accurate.
I believed that the uncertainty between the vote to leave the EU in 2016 and the election at the end of 2019 created an artificially depressed trading environment. So, I am pleased to say that we have now seen a significant increase in trade volumes for which the corresponding increase in revenue has outstripped the increase in the marginal operating costs. As a consequence, the Directors believe the Company is trading ahead of current market expectations. I have long maintained that the business model would translate increased trade volumes into improved profits, and the conditions over this period has enabled us to demonstrate this and produce the results which are now published here. We have been able to offset the effects of the depressed market conditions through organic growth and realigning the business model. We are now able to see the results which can be produced in a favourable market but still with no contribution from an increase in interest rates.
I am also pleased that we were able to cope operationally with the challenges COVID-19 presented. From this we anticipate further opportunities to grow the business and utilise working practices that had not previously been considered.
As always I would like to thank the staff of Jarvis but on this occasion I would like to extend a special thank you on behalf of all stakeholders to those individuals that have put in the hours and effort that has enabled Jarvis to meet the challenges of Covid 19. It is further worthy of mention that we have not been put in a position of having to consider the furlough process or any Covid related financial schemes being offered to businesses.
As has historically been the case we will continue to maintain our general policy of returning profits to shareholders where the cash held is surplus to regulatory and operating requirements.
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 2020 where measurement over a year is required.
|Profit before tax margin||53%||46%||20%|
|Revenue per employee (annualised)||£227,574||£172,580||to increase|