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Highlights:

  • JIM profit before tax rises 71.1% YoY in H2FY24 despite continued low transaction volumes.
  • The company confirms conditional sale of retail brokerage business; completion expected in July 2025
  • JIM outlines plan to wind down operations and potentially cancel AIM listing.

Jarvis Securities plc (LSE:JIM) is the UK-based holding company of Jarvis Investment Management Limited, providing retail stockbroking, settlement, and custody services, now undergoing business reduction and restructuring following FCA-led remediation.

The company has reported its unaudited second interim results for the six months ended 31 December 2024, showing significant YoY profit growth. However, the company remains in a period of operational uncertainty as it works through a strategic wind down and prepares for the possible sale of its core brokerage business.

Total revenue rose by 8.4% YoY GBP 484,200 compared to the same period in the prior year, reaching a modest increase despite subdued transaction volumes. The company reported a 71.1% increase in profit before tax, which totalled GBP 992,725 for the six-month period. Earnings per share (EPS) increased to 4.01p, compared to 2.38p in the same period a year earlier.

The improvement in profit was attributed in part to a 19% rise in interest income, benefiting from favorable interest rate conditions during the period. In contrast to the prior year, external remediation costs were lower, further supporting profitability.

The results follow Jarvis’s recent change in accounting reference date to 30 June. Over the past two years, the company and its subsidiary, Jarvis Investment Management Limited (JIML), have been subject to a Skilled Person review under Section 166, leading to ongoing remediation efforts and voluntary restrictions (VREQ) agreed with the Financial Conduct Authority (FCA).

During H2 FY24, JIML continued to focus on meeting the recommendations set out by the Skilled Person, even as broader market conditions remained challenging. Despite these efforts, trading volumes have yet to recover to pre-review levels.

As announced on 15 April 2025, JIML has conditionally agreed to sell the majority of its retail execution-only brokerage business to Interactive Investor Services Limited (ii). Completion of this transaction is provisionally expected in early July 2025, though Jarvis confirmed that certain conditions remain which could allow ii to withdraw unless waived. Both parties are still working toward completing the sale.

As part of this process, the company has stopped taking on new clients and issued exit notices to existing Model B clients, initiating a 15-month wind-down period.

 

However, Jarvis has indicated that its Directors do not currently plan to pursue any acquisitions. Instead, they are considering a Proposed Cancellation of the company’s admission to trading on AIM, pending shareholder approval.