Highlights

  • Jarvis received GBP 9m from the completed sale of its retail brokerage business.
  • FCA-related redress obligations may create a liability of around GBP 2.8m.
  • The group reported cash balances of GBP 10.4m as of December 2025.

Jarvis Securities Plc (LSE:JIM) announced its audited results for the 18 months ended 30 June 2025, confirming the completion of the sale of its retail execution-only brokerage business by its regulated subsidiary, Jarvis Investment Management Limited (JIML). The accounting reference date was extended to accommodate the transaction.

The sale to Interactive Investor Services Limited completed in July 2025, with JIML receiving initial proceeds of GBP 9m on 8 July 2025. Two deferred consideration payments of GBP 1m each are scheduled for payment at 12 and 24 months post-completion, subject to specific conditions. As of 29 December 2025, the group reported cash holdings of GBP 10.4m.

Wind-Down Oversight and Cost Profile
The board has appointed S&W Partners LLP to independently monitor the wind-down of JIML. The appointment reflects the ongoing regulatory remediation work, which continues to generate material internal and external costs. JIML remains subject to voluntary requirements agreed with the Financial Conduct Authority (FCA), restricting dividend payments to the parent company.

Although interest income continues to be generated, this has declined significantly following the reduction in client money balances. The board stated that dividend capacity will continue to be reviewed quarterly, subject to regulatory conditions and available headroom to meet wind-down costs.

FCA Review and Redress Exposure
As part of continued engagement with the FCA, JIML identified historic breaches of conduct of business rules. These relate to commission-sharing arrangements with introducers and legacy client documentation that may have been unclear regarding interest payments on client money.

A redress scheme is under discussion with the FCA, and its final structure has not yet been determined. Based on current assumptions and legal advice, JIML estimates a potential liability of approximately GBP 2.8m over the next 12 months. The final cost may change depending on client participation levels and regulatory outcomes.

Financial Performance
The group reported profit after tax of GBP 2.18m for the period, compared with GBP 3.98m in the prior year. Quarterly dividends totaling 6.75p per share were paid during the period, and a special dividend of 2.9p per share was declared in July 2025. No final dividend has been proposed.

Share Performance
JIM shares closed at GBX 12.75 on December 30.