Jarvis Securities remains highly cash-generative (LON:JIM)

Jarvis Securities plc

Jarvis Securities plc (LON:JIM) announced its results for year ended 31st December 2021 last week. DirectorsTalk MD Darren Turgel caught up with Nick Spoliar Director Institutional Research at WHIreland to discuss the results.

Jarvis today published their full year results for FY20221A; what were the key takeaways in your view?

Jarvis delivered a superb set of H1s last year, based on strong trading volumes while the company also reaped the benefits of prior reorganisation. With a clear outline now for the full year, upgrades earlier in the year have been substantially retained, although there was some slackening of the pace on the trade volume front during the course of FY21A. A very major takeaway was the significant distribution of approaching £10m of cash in regular and special dividends combined – a reflection of the company’s shareholder alignment. The company remains highly cash-generative – reference the £3.8m net cash after excluding regulatory sums at the year end, notwithstanding the strong dividend hand-out.

How do you view the company in terms of a valuation?

We value the company on a Sum of the Parts basis; and as we assess the pace of interest rate rises in the coming months will update our fair value assumptions (previously fair value seen at 325p).

What should investors look out for over the coming months in terms of news flow?

Followers of Jarvis will look to external indicators as much as announcements from the company. Volatility in the market could help Jarvis, but the macro picture is confused / has yet to crystallise while the War in Ukraine continues. News about the interest rate cycle is also potentially important since historically Jarvis made more of its profits from interest on accounts.

Jarvis Securities is the AIM traded parent of Jarvis Investment Management Ltd. Jarvis has been providing retail and outsourced financial services since 1984.

The company is incorporated in England & Wales. Its shares are admitted to trading on AIM under ticker JIM. The company’s operations are principally carried out in the United Kingdom.

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