Final Results

Jarvis Securities plc 25 January 2007 JARVIS SECURITIES PLC ('Jarvis' or 'the Company') STATEMENT OF AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 CHAIRMAN'S STATEMENT Financial Highlights â€¢ Turnover up 29% to Â£3.42M (December 2005: Â£2.65M) â€¢ Operating profit up 93% to Â£1.14M (December 2005: Â£592k) â€¢ EPS up 158% to 6.79p (December 2005: 2.63p) â€¢ Net assets of the group up 11% to Â£1.52M (December 2005: Â£1.37M) â€¢ Final dividend proposed of 2.5p (2005: nil final dividend) Commentary In our last interim statement I reported that our strategy to focus on service and profits was beginning to deliver considerable financial benefits to the group. The results for 2006 show the success that we have enjoyed with turnover, profits, earnings and assets all up significantly. The business continues to expand in all areas and we look forward to 2007 with great confidence. Retail client numbers are still increasing at an impressive rate and we have a number of potential commercial contracts awaiting agreement. Whilst general trading volumes are beyond our control we have been growing our fee income base and the interest rate environment is also moving in our favour. We have put a lot of effort into the new business review requirements an extract of which is set out at the end of this announcement. This is an idea that we support as it gives our stakeholders a real insight into how the Board monitor the progress of the group and whether we are achieving or not. I would urge shareholders in particular to take a little time to consider these measures so as to fully appreciate the true depth of achievement and strength of the company. A quick glance at the highlights above and in the business review section of the fast growth of turnover, profits and funds under administration give a good overview of our financial performance. However, it is also important to consider what underpins that performance and I am pleased to say that you will see a firm that takes its environmental and social responsibilities seriously, that is improving productivity from its staff, that has rapidly growing client numbers, that takes quality of service seriously and that has the lowest complaints' ratio in our sector. As a Board we perceive a positive outlook for Jarvis over the coming year and I anticipate announcing an improved financial position at the interim stage. I also commented in July 2006 on the disappointing performance of our share price. Whilst this has improved over recent months, I still do not believe that this sufficiently values the current and future prospects of the business. Since we joined AIM in 2004, operating profits are up by more than 67% but at the 31 December the share price had only risen 15% to 95p from the introduction price of 82.5p. This has not gone unnoticed by other firms in our sector and we have received a number of informal approaches during 2006. These informal discussions were not at an attractive level but they support our view on the current low valuation of Jarvis. It is also worth noting that our price earnings ratio at the end of 2006 was 9.5 compared to a selection of other publicly traded brokers at 18.3 for Charles Stanley Group plc*, 19.8 for Fiske plc* and 20.4 for Walker, Cripps, Weddle, Beck plc*. Jarvis Securities plc is fast growing, with an arguably better business model in my view, and this disparity is unsatisfactory. Given these circumstances we shall continue to commit some spare cash to buying-back further shares for cancellation whilst the Board believe the stock to be undervalued. As I have previously mentioned, this cannot be a long-term answer for our frustrations and so we shall continue to try and improve awareness of our group with investors. I am delighted that our efforts to strengthen the foundations of the business have been successful and that we are now seeing a significant financial benefit. I would like to thank Lionel Grant, who retired this year, for his tireless service for more than 20 years in building the business that he helped to found. I would also like to extend my thanks to my colleagues on the Board and to the rest of our dedicated team in delivering such an improved performance. Andrew J. Grant Chairman *Source RoyalBlue Fidessa 11/1/07 GROUP PROFIT AND LOSS ACCOUNT For the year ended 31 December 2006 -------- -------- 2006 2005 as restated -------- -------- Â£ Â£ TURNOVER 3,419,658 2,651,665 Administrative expenses 2,275,800 2,009,766 Exceptional administrative expenses - 50,222 -------- -------- 2,275,800 2,059,988 OPERATING PROFIT 1,143,858 591,677 Interest payable 2,605 8,288 -------- -------- PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 1,141,253 583,389 Tax on profit on ordinary activities 364,322 281,678 -------- -------- PROFIT FOR THE FINANCIAL YEAR 776,931 301,711 ======== ======== EARNINGS PER SHARE Basic earnings per share 6.79p 2.63p Diluted earnings per share 6.43p 2.49p CONTINUING OPERATIONS None of the group's activities were acquired or discontinued in the current year. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES For the year ended 31 December 2006 2006 2005 as restated -------- -------- Â£ Â£ PROFIT FOR THE FINANCIAL YEAR 776,931 301,711 -------- -------- TOTAL RECOGNISED GAINS AND LOSSES RELATING TO THE YEAR 776,931 301,711 ======== Prior year adjustment (8,848) -------- TOTAL GAINS AND LOSSES RECOGNISED SINCE LAST FINANCIAL STATEMENTS 768,083 ======== GROUP BALANCE SHEET As at 31 December 2006 -------------- --------------- 2006 2005 as restated -------------- --------------- Â£ Â£ Â£ Â£ FIXED ASSETS Intangible assets 344,060 364,695 Tangible assets 144,145 176,597 --------- -------- 488,205 541,292 CURRENT ASSETS Investments 34,186 33,177 Debtors 5,710,459 3,693,549 Cash at bank and 6,561,264 5,130,205 in hand --------- -------- 12,305,909 8,856,931 CREDITORS: Amounts falling 11,273,281 8,031,163 due within one --------- -------- year NET CURRENT ASSETS 1,032,628 825,768 -------- -------- TOTAL ASSETS LESS CURRENT LIABILITES 1,520,833 1,367,060 ======== ======== CAPITAL AND RESERVES Called up share 113,500 114,845 capital Share premium 789,834 789,834 account Profit and loss 668,251 472,412 account Capital redemption 1,345 - reserve Other reserves 17,696 8,848 -------- -------- 1,590,626 1,385,939 Own shares held (69,793) (18,879) for cancellation -------- -------- SHAREHOLDERS' FUNDS - 1,520,833 1,367,060 ALL EQUITY ======== ======== GROUP CASH FLOW STATEMENT For the year ended 31 December 2006 --------- --------- 2006 2005 as restated --------- --------- Â£ Â£ Reconciliation of operating profit to net cash inflow from operating activities Operating profit 1,143,858 591,677 Depreciation 80,385 77,822 Amortisation 20,635 20,635 Loss on disposal of fixed assets 749 13,501 (Increase) in debtors (581,828) (319,021) Increase/(decrease) in creditors 50,359 (282,020) Cost of share options 8,848 8,848 Interest payable (2,605) (8,288) --------- --------- Net cash inflow from operating 720,401 103,154 activities ========= ========= CASH FLOW STATEMENT Cash flow from operating 720,401 103,154 activities Taxation (201,933) (245,412) Capital expenditure and financial (49,691) (137,874) investment Equity dividends paid (458,768) (287,114) --------- --------- 10,009 (567,246) Financing (173,240) (29,065) --------- --------- (Decrease) in cash (163,231) (596,311) ========= ========= Reconciliation of net cash flow to movement in net funds 2006 2005 -------------- -------------- Â£ Â£ Â£ Â£ (Decrease) in cash in the year (163,231) (596,311) -------- -------- Movement in net funds in the year (163,231) (596,311) Net funds at 1 January 2006 634,730 1,231,041 -------- -------- Net funds at 31 December 2006 471,499 634,730 ======== ======== NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31 December 2006 1. ACCOUNTING POLICIES The financial statements have been prepared in accordance with applicable accounting standards. The following accounting policies have been used consistently in dealing with items which are considered material in relation to the financial statements. (a) Accounting convention The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. (b) Revenue Revenue represents net sales of services, commissions and interest excluding value added tax. Management fees charged in arrears are accrued pro-rata for the expired period of each charging interval. Interest is accrued on cash deposits pro-rata for the expired period of the deposit. Commission income is recognised on receipt. (c) Basis of consolidation The group financial statements consolidate the financial statements of Jarvis Securities plc, Jarvis Investment Management plc, Sharegain Limited, JIM Nominees Limited, Galleon Nominees Limited and Dudley Road Nominees Limited made up to 31 December 2006. Intra-group sales and profits are eliminated on consolidation and all sales and profit figures relate to external transactions only. No profit and loss account is presented for Jarvis Securities plc as provided by S230(3) of the Companies Act 1985. (d) Tangible fixed assets Depreciation is provided on cost in equal annual instalments over the lives of the assets at the following rates: Website - 33% on cost Leasehold improvements - 33% on cost Motor vehicles - 15% on cost Office equipment - 20% on cost Software developments - 33% on cost (e) Intangible fixed assets Goodwill represents the excess of the fair value of the consideration given over the aggregate fair values of the separable net assets. Goodwill is amortised over 20 years on a straight line basis, being the directors' best estimate of the useful economic life, subject to annual impairment reviews. Other intangible assets are capitalised at their market value on acquisition and are amortised on the same basis. (f) Deferred taxation Provision is made in full for all taxation deferred in respect of timing differences that have originated but not reversed by the balance sheet date, except for gains on disposal of fixed assets which will be rolled over into replacement assets. No provision is made for taxation on permanent differences. Deferred tax assets are recognised to the extent that it is more likely than not that they will be recovered. (g) Segmental reporting No significant segments for reporting purposes exist as required by Statement of Standard Accounting Practice 25. (h) Pensions The group operates a defined contribution pension scheme. Contributions payable for the year are charged to the profit and loss account. (i) Stockbroking balances The gross assets and liabilities of the group relating to stockbroking transactions on behalf of clients are included in debtors, creditors and cash at bank. (j) Operating leases and finance leases Costs in respect of operating leases are charged on a straight line basis over the lease term in arriving at the operating profit. Where the company has entered into finance leases, the obligations to the lessor are shown as part of borrowings and the rights in the corresponding assets are treated in the same way as owned fixed assets. Leases are regarded as finance leases where their terms transfer to the lessee substantially all the benefits and burdens of ownership other than right to legal title. (k) Investments Fixed asset investments are stated at cost and current asset investments are stated at current market valuations. (l) Cashflow statement Cash movements relating to stockbroking balances derived from client trading are excluded from the cashflow statement on the basis that these amounts do not form part of the cashflow position of the group. (m) Foreign Exchange The company offers settlement of trades in sterling, US dollars, euros, Canadian dollars and Swiss francs. The company does not hold any assets or liabilities other than in sterling and converts client currency on matching terms to settlement of trades realising any currency gain or loss immediately. Consequently the company has no foreign exchange risk. (n) Options Employee options are expensed equally in each year from issue to the date of first exercise. The total cost is calculated on issue based on the Black Scholes method with a volatility rate of 30% and a risk free interest rate of 3.75%. It is assumed that all current employees with options will still qualify for the options at the exercise date. 2. GROUP INCOME The income of the group during the year was made in the United Kingdom and the income of the group for the year derives from the same class of business as noted in the Directors' Report. 2006 2005 -------- -------- Â£ Â£ Interest received 1,508,974 1,280,405 Fees, commissions, foreign exchange gains and other revenue 1,910,684 1,371,260 -------- -------- 3,419,658 2,651,665 ======== ======== NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31 December 2006 (continued) 3. OPERATING PROFIT 2006 2005 --------- -------- Operating profit is stated after charging: Â£ Â£ Directors' emoluments 378,330 247,595 Depreciation - owned assets 80,385 77,820 Amortisation 20,635 20,635 Operating lease rentals - hire of machinery 5,766 786 Operating lease rentals - land and buildings 26,371 19,750 Auditor's remuneration - audit - parent company 18,525 27,000 Auditor's remuneration - interim accounts review - parent company 3,000 3,750 Auditor's remuneration - other services - parent company 10,150 24,500 Auditor's remuneration - other services - subsidiaries - 2,200 Loss on disposal of fixed assets 749 13,501 Interest payable and similar charges 163,566 213,343 Directors' emoluments include a non-recurring retirement payment to Mr L G Grant of Â£70,000. Benefits are accruing for one director (2005 one director) under a money purchase pension scheme. Staff Costs The average number of persons employed by the group, including directors, during the year was as follows: Number Number Management and administration 22 23 ======== ======== The aggregate payroll costs of these persons were as Â£ Â£ follows: Wages and salaries 766,071 626,883 Pension contributions 10,764 9,964 Social security 86,787 66,094 -------- -------- 863,622 702,941 ======== ======== 4. EXCEPTIONAL ITEMS Exceptional items derive from the costs relating to the following events: During the previous year a potential acquisition was aborted following due diligence. 5. INTEREST PAYABLE AND SIMILAR CHARGES 2006 2005 -------- -------- Â£ Â£ Bank loans and overdrafts 2,605 8,288 Interest paid to clients 160,961 205,055 -------- -------- 163,566 213,343 ======== ======== Interest paid on client deposits is included within administrative expenses as the holding of client monies and the earning and paying of interest upon these is a core part of the business activities of Jarvis Investment Management plc. 6. DIVIDENDS 2006 2005 -------- -------- Â£ Â£ Interim dividends paid on Ordinary 1p shares 458,768 287,114 ======== ======== Dividend per Ordinary 1p share 4.0p 2.5p ======== ======== NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31 December 2006 (continued) 7. CASH AT BANK & IN HAND Group Company 2006 2005 2006 2005 -------- -------- -------- -------- Â£ Â£ Â£ Â£ Balance at bank and in hand 6,561,264 5,130,205 2,905 4,080 ======== ======== ======== ======== Cash at bank includes Â£6,089,765 (2005 Â£4,495,475) received in the course of settlement of bargains. This amount is held by the company in trust on behalf of clients and is only available to complete the settlement of outstanding bargains. 8. RELATED PARTY TRANSACTIONS At the year end Sion Holdings Limited had an outstanding balance due to Jarvis Securities plc of Â£254,496 (2005 Â£149,479). The loan is secured and carries an interest rate of 6.45% p.a. The highest outstanding balance during the year was Â£576,023 and the loan is due to be repaid in full on conclusion of several property sales made by Sion Holdings Limited that have exchanged and are awaiting legal completion. A further partial repayment of Â£54,496 was made on 17 January 2007. During the year the company made a management charge of Â£10,000 to Sion Holdings Ltd for office and administrative services and paid rent of Â£26,371 to Sion Holdings Limited. In addition, Jarvis Securities plc charged Sion Holdings Limited Â£74,125 for the costs and project management of building an extension to its office premises of which Sion Holdings Limited is the freeholder. 9. EARNINGS PER SHARE The weighted average number of shares in issue during the year for the Earnings per Share calculations are as follows: Date Event No. of shares Days 2006 2005 ------ ---------------- -------- ------ --------- --------- 01/01/ Opening balance 2005 11,484,545 365 - 11,484,545 05 01/01/ Opening balance 2006 11,484,545 8 251,716 - 06 09/01/ Cancellation of 11,460,000 252 7,912,109 - 06 treasury shares 18/09/ Cancellation of 11,400,000 81 2,529,860 - 06 treasury shares 07/12/ Cancellation of 11,350,000 24 746,301 - 06 treasury shares --------- --------- 11,439,986 11,484,545 The Diluted Earnings per Share calculation is as follows: Date Event No. of shares Days 2006 2005 --------- 01/01 Opening balance 2005 12,134,545 365 - 12,134,545 /05 01/01 Opening balance 2006 12,134,545 8 265,962 - /06 09/01 Cancellation of 12,110,000 252 8,360,876 - /06 treasury shares 18/09 Cancellation of 12,050,000 81 2,674,109 - /06 treasury shares 07/12 Cancellation of 12,000,000 24 789,041 - /06 treasury shares --------- --------- 12,089,988 12,134,545 Earnings per share before exceptional expenses 6.79p 3.06p NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31 December 2006 (continued) 10. NOTES TO THE CASH FLOW STATEMENT --------- --------- NOTE A - GROSS CASH FLOWS 2006 2005 as restated --------- --------- Â£ Â£ Capital expenditure and financial investment Payments to acquire tangible fixed assets (64,659) (183,045) Receipts from disposal of fixed assets 15,977 41,999 Receipts from disposal of current asset investments - 3,172 Purchase of current asset investments (1,009) - --------- --------- (49,691) (137,874) ========= ========= Financing Expenses paid on issue - (10,186) of shares Repurchase of own (173,240) (18,879) shares --------- --------- (173,240) (29,065) ========= ========= NOTE B - ANALYSIS OF NET FUNDS At 1.1.06 Cash Flow At 31.12.06 --------- --------- --------- Â£ Â£ Â£ Cash in 5,130,205 1,431,059 6,561,264 hand, at bank Less DVP (4,495,475) (1,594,290) (6,089,765) cash --------- --------- --------- NET FUNDS 634,730 (163,231) 471,499 --------- --------- --------- DVP cash is client funds held in trust for delivery versus payment transactions in order to pay market counterparties for the purchase of equities and other instruments settled via CREST, the electronic mechanism for the simultaneous and irrevocable transfer of cash and securities operated by CRESTCo Limited. 11. EVENT AFTER THE BALANCE SHEET DATE The Board proposes the payment of a final dividend of 2.5p per Ordinary 1p share to holders on the register on 2 February 2007 for payment on the 1 March 2007 subject to approval at the annual general meeting of the company. BUSINESS & OPERATING REVIEW Business review Strong growth has resulted in the group's turnover rising by 29.0% to Â£3,419,658. Profit before tax has also grown to 195.6% of the 31 December 2005 level, with basic earnings per share up by 158.2%. Group net assets are at Â£1,520,833 from Â£1,367,060 a year earlier, a rise of 11.2%. The Group The principal trading subsidiary of the Group is Jarvis Investment Management plc. For regulatory reasons relating to administration and cost, Jarvis Securities plc is the AIM traded parent, holds the assets of the Group and is responsible for activities that fall outside the scope of regulated investment business. Jarvis Investment Management plc is a Member of The London Stock Exchange (LSE) and is authorised and regulated by the Financial Services Authority (FSA). This status is essential for the trading activities of the Group and therefore compliance with the Rules of both the LSE and FSA is of paramount importance. The Group provides retail execution-only stockbroking; PEP, ISA and SIPP investment wrappers; savings schemes and financial administration and settlement services in all these areas to other stockbrokers and investment firms as well as individuals. The market There are many stockbroking firms within the UK and a number of outsourced financial administration service providers. Jarvis Investment Management is in a highly competitive and price-sensitive market for retail execution-only clients. The market for third party administration services is also competitive but with a greater bias towards service than cost. Jarvis has expanded significantly in both these areas during the year under review and expects to continue doing so in 2007. Trade volumes clearly have a significant impact on the fortunes of stockbroking businesses but with a wider spread of activities and a different charging model to our competitors we believe that our income is less volatile and of a higher quality that other pure execution-only brokers. Capitalisation and financing Jarvis Securities plc has 11,280,000 Ordinary 1p shares in issue, following the cancellation of 70,000 Ordinary 1p shares on 8 January 2007. These shares are admitted to trading on AIM. The Company has been buying back its shares for cancellation during the year when the Board believed that the share price did not reflect the value of the business. The Company will continue to repurchase shares when its cash position allows. Whilst the business is highly cash generative, and therefore requires no further debt or other external financing, the Board wish to balance the use of cash between the stated dividend policy and any buy-back of shares. Approximately two-thirds of profit after tax is paid out as a dividend, with the other third being reinvested in the business or used for purchasing its own shares as appropriate. This results in the Group having no borrowing requirements and the ability to pay an attractive yield. Environmental and social responsibility Jarvis is committed to reducing waste because of the environmental and cost implications. We do not see environmental concerns as negative to our business progress but complimentary. To this end we have instigated a number of initiatives relating to electronic communication and payment in order to reduce paper usage and the carbon effects of transporting documentation. Jarvis has been storing its client documentation electronically for more than four years now and this significantly reduces wasted space and the resultant costs of rent, light and heat as well as the environmental impact of physical storage. This further supports our business continuity objectives. Jarvis have supported a number of local events, including the Tunbridge Wells Business Awards, where we were delighted to be a runner-up in the Customer Service section, and we see our firm as part of our local community as well as a national service provider. Jarvis has supported a number of charities during the year and we are committed to continuing to do so and to develop new ways to cut our waste and impact upon the environment. Donations made to: â€¢ Comic Relief â€¢ British Heart Foundation â€¢ Demelza House â€¢ Shooting Star Children's Hospice â€¢ RSPCA Jarvis also won another Investor's Chronicle award this year. These are awarded on the basis of a public vote, which makes this a real achievement against our larger competitors. Key Performance Indicators (KPI) The primary goal of the Board is efficiency. We believe this to be at the heart of a successful business and we believe that efficiency is central to pleasing all the stakeholders in the Jarvis Securities plc Group. Efficiency means a constructive and satisfying work environment for employees, a positive experience for clients, reduced environmental impact, reliability for those organisations that trust Jarvis to support them and a robust financial performance for shareholders. The following measurements, or KPIs, are important in monitoring and directing the development of the Company: Operating profit margin This is operating profit as a percentage of turnover. This is a good indicator of efficiency, as a high margin tends to suggest that work is completed quickly and accurately resulting in a high rate of return for the Group. The average margin for our competitors is 6.77% (source: ComPeer annual benchmarking report 2005). The Board aims to have significantly higher than average margins and to keep these above 20%. 2006: 33.45% 2005: 22.31% ROCE The return on capital employed is the operating profit as a proportion of the fixed capital used in the business, such as assets. A high rate of return, ROCE, indicates the efficient use of the resources of your Group. Given the low capital nature of our business model we would expect a relatively high ROCE figure. The Board aims to maintain a ROCE figure of double the one-year Treasury rate, giving a current target of 11.2%. 2006: 75.2% 2005: 43.3% Revenue per employee This is turnover per staff member and an increasing rate of revenue per employee represents increasing efficiency. Given that the Group's staff is not only its largest single cost but also its most important resource this measure is fundamental in monitoring performance. The Board's aim is to grow revenue per employee at a faster rate than payroll costs, excluding any non-recurring items, in order to improve returns to shareholders and increase efficiency each year. 2006: 155,439 2005: 115,290 Revenue increase rate: 34.8% vs. payroll cost increase: 11.2% Funds under administration: A growth in stock and cash held for clients by Jarvis indicates growth of the firm. Whilst this can be due to external factors such as market values which are beyond the control of the Board this is a useful indicator of the general direction of the company. Interest on cash held for clients is a significant proportion of the Group's income and hence this provides a good guide to anticipated earnings in combination with current interest rates. The Board aims to grow both cash and stock under administration explicitly each year. Cash 2006: Â£32M Cash 2005: Â£23M Total assets 2006: Â£309M Total assets 2005: Â£233M Client numbers Increasing client numbers is essential in increasing the size of the business in the future. Increasing revenue per client is also desirable to accelerate the growth of the business and hence these two measures are considered together. The Board aims to increase client numbers by at least 10% per year and maintain positive revenue growth per client. In combination this will drive turnover growth for the Group into the future. Rate of Increase (Number): 19.6% Rate of Increase (Revenue): 7.84% Complaints ratio Providing a good service to clients is essential for a strong business. The number of formal complaints made per 1,000 accounts is an indicator of how good the service provided is. It is essential to keep this figure low to maintain clients and attract new ones. The Board aims to keep the number of formal complaints per 1,000 accounts below 2. The average amongst our competitors is 8.92 (source: ComPeer annual benchmarking report 2005). Jarvis had the best ratio in the execution-only industry in the last ComPeer report and we are very proud of this achievement. 2006: 0.51 2005: 0.44 Calls answered in three rings Unlike many firms in financial services we still believe in personal attention. Jarvis do not use automated telephone menu systems and we aim to answer 90% of all telephone calls within three rings. We believe that this differentiates us from competitors and makes our firm more attractive to clients: % of calls answered in three rings in 2006: 88.5% % of calls answered in three rings in 2005: 92.4% These results were adversely affected due to an unexpectedly busy period in the first quarter of the year. Performance was improved significantly during the year with 95.0% of calls answered in three rings by December. Sickness days Our staff are our most important resource and they control the success or otherwise of Jarvis. We aim to provide a happy and positive work environment. This is difficult to measure in strictly numerical terms but an accepted indication of morale is the proportion of working days lost to illness. This is calculated by dividing the number of whole working days lost per year for all employees by the maximum potential number of working days available (assumes average number of employees multiplied by 260 days per employee). The Board's aim is to attain a loss of less than 1% per year. 2006: 1.85% 2005: 0.75% These results were adversely affected due to a skiing injury and the hospitalisation of a second employee, which are abnormal events. EPS and P/E ratio The principal measures used by investors to compare and rate publicly traded companies are the earnings per share (EPS) and the relative multiple to these earnings of the current share price (the price earnings or P/E ratio). Therefore the Board must have regard to these measures in order to maximise returns to investors. EPS is a result of dividing profit after tax by the average number of shares in issue throughout the period. The P/E ratio is the share price divided by EPS. The P/E ratio is largely a product of the market price of the shares in the Company and hence is largely beyond the control of the Board. Certain actions can be taken where this is perceived by your Board to be out of sync with comparable firms, such as the purchase of shares for cancellation as undertaken in the year. However this is mainly a result of public perception and is therefore difficult to change. These measures are important to investors and hence need to be given high regard. The Board aims to grow EPS by at least 25% per year, which is an aggressive target for expanding Jarvis. The Board will continue its efforts to increase the P/E ratio to reflect its belief that Jarvis should have a premium rating to its competitors because of its growth rate, yield and differentiated business model. 2006 EPS: 6.79p 2005 EPS: 2.63p Rate of change: 158% 2006 P/E ratio: 14.0 2005 P/E ratio: 29.3 Future developments Jarvis Securities plc continues to seek further acquisition targets that can be integrated into the operating subsidiary with resultant cost savings and cross-selling opportunities. Jarvis Investment Management plc will continue to actively promote its retail and third party stockbroking and administration services. Results and dividends The consolidated profit for the year after taxation amounted to Â£776,931 (2005 Â£301,711). Ordinary dividends of Â£458,768 (2005 Â£287,114) were paid during the year. The balance on the profit and loss account has been carried forward and a final dividend of 2.5p per Ordinary 1p share is proposed by the Board subject to approval at the annual general meeting. For Further Information: Jarvis Securities plc Mathew Edmett Tel: 0870 224 1111 Daniel Stewart & Company plc Lindsay Mair Tel: 0207 776 6550 This information is provided by RNS The company news service from the London Stock Exchange

Companies

Jarvis Securities (JIM)

Friday, 10th May 2024

COMPANIES COVERED:

RMV MTC SFOR

Rightmove slumps as high mortgage costs continue to drag on sentiment, Mothercare falls amidst slowing sales but S4 Capital jumps higher despite market woes as promises of a better second half lend support.

Full Archive

UK 100

Latest directors dealings

1 day ago Mattioli Woods
1 day ago Morgan Advanced Materials
1 day ago Capita
1 day ago Judges Scientific
1 day ago Me Group International

All directors dealings today