# Jarvis Securities achieves a 43% increase in profit before tax

- Link: https://www.directorstalkinterviews.com/jarvis-securities-achieves-a-43-increase-in-profit-before-tax/412967397
- Published: 2021-03-11T08:20:09+00:00
- Author: Amilia Stone

**Jarvis Securities **plc ([LON:JIM](https://www.directorstalkinterviews.com/company/jarvis-securities-plc/jim.l))
has announced its results for the year ended 31 December 2020.

**HIGHLIGHTS**

·      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

**CHAIRMAN’S STATEMENT**

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.

Andrew Grant

Chairman – Jarvis Securities

**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 22^(rd) 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.

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