Jarvis pre-tax profits rise

Jarvis Securities posts pre-tax profits of £3.6m for the year to the end of December - 7% up on last time.

Revenues of £8.3m were up from £7.6m in 2015.

Chairman Andrew Grant said: "Last year I urged a sense of caution over the short-term performance of Jarvis, whilst highlighting that over the medium to long term the business was positioned to do well and would benefit significantly once interest rates rose and market activity increased. I am happy to report that my short-term pessimism was overdone.

"During 2016 we saw a dramatic improvement in market conditions compared to what we experienced in the latter half of 2015.

"The catalyst for this was the Brexit result. Investors were cautious prior to the vote with many fearing a vote to leave the EU could result in a significant fall in equity prices.

"Once any decline failed to materialise trade volumes increased throughout the remainder of 2016, and are being sustained at those levels at the time of writing.

"Whilst the FTSE 100 has recently set record highs, our own share price has remained below the highs of 2014.

"This has however provided an opportunity to purchase more of our own shares to hold in treasury.

"Although our share price has not fully recovered to the levels of 2014, we have had another record year, and ignoring the special dividend paid out last year, we have increased dividend payments by 6%.

"We have adhered to our stated policy of distributing 2/3rds of profit after tax but cash reserves in the business continue to build up.

"Going forward therefore the Board may flex this policy such that we pay out at least 2/3rds of profits as dividends, further announcements will be made as appropriate.

"Looking forward into 2017 and beyond I am confident we will continue to grow the business and further improve our financial results.

"Market conditions are currently excellent for our own retail client activity, we have a strong pipeline of new Custodian and Model B business, and cash under administration is at record levels.

"Even modest increases in interest rates which now seem as though they may materialise in the shorter term will significantly increase profitability."