Final Results

RNS Number : 3415Y

Jarvis Securities plc

21 February 2013

 



21 February 2013

Jarvis Securities plc

("Jarvis" or "the Company" or "the Group")

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012

HIGHLIGHTS

•          22% increase in profit before tax

•          38% increase in year on year interest income

•          12.9% growth in dividend payment

•          20% increase in EPS

Enquiries:
Jarvis Securities plc Andrew Grant Jolyon Head	Tel: [phone]
WH Ireland Limited Andrew Kitchingman James Bavister	0113 3946619

Notes:

Jarvis Securities plc is the holding company for Jarvis Investment Management Limited (AIM: JIM.L) a stock broking company and outsourced service provider for bespoke tailored financial administration. Jarvis was established in 1984 and is a member of the London Stock Exchange; a broker dealer member of PLUS Markets, authorised and regulated by the Financial Services Authority and an HM Revenue & Customs approved ISA manager. Jarvis has more than 60,000 retail clients and a growing number of institutional clients. As well as normal retail broking Jarvis provides cost effective and flexible share trading facilities within ISA and SIPP wrappers.

Jarvis provides outsourced and partnered financial administration services to a number of third party organisations. These organisations include advisers, stockbrokers, banks and fund managers. Jarvis can tailor its administration processes to the requirements of each organisation and has a strong reputation for flexibility and cost-effectiveness.

The Company is tomorrow sending to shareholders its Annual Report and Accounts for the year ended 31 December 2021, together with a notice convening the Annual General Meeting ("AGM"), to be held at the Company's offices on Thursday 21 March 2013. The Annual Report and Accounts and Notice of AGM will also be available from the Company's website, www.jarvissecurities.co.uk.

CHAIRMAN'S STATEMENT

I am pleased to once again be commenting on an excellent set of results. Whilst overall trade volumes on UK stock markets have fallen year on year, Jarvis' key performance metrics are growing. We continue to attract and retain retail and commercial clients, cash and funds under administration have increased to record levels, our market share of trade volumes has increased and costs remain stable.  All of these factors have fed through to our financial results.

In previous statements I have been cautiously optimistic about the future. I have sought to convey that the business will perform strongly without wishing to create unrealistic expectations to our stakeholders. We are now seeing real signs that the business is gaining traction in many areas and are confident that we can deliver similar growth rates annually to that which we have delivered this year. We have performed exceptionally over the past few years in a difficult market, but there are now signs that the macroeconomic environment for the financial services industry is beginning to improve, and we are well placed to benefit from this uplift. 2013 promises to be a good year for the development and growth of Jarvis. We are diversifying our commercial and institutional client offering and we will be making significant improvements to our retail client offering including our first low cost execution only SIPP.

The business continues to be highly cash generative and management are committed to returning cash to shareholders in a predictable and transparent fashion. We have published all our quarterly dividend dates for 2013 on the investor section of our website, and we will continue to maintain our dividend policy of paying out 2/3rds of profit after tax.

Once again I would like to thank every member of the Jarvis team for their continued commitment.

Andrew Grant - Chairman

Consolidated income statement for the year ended 31 december 2012

				Year to	Year to
				31/12/12	31/12/11
	Notes
				£	£
Continuing operations:
Revenue	3			6,116,018	5,676,690
Administrative expenses				(3,747,263)	(3,735,996)
Finance costs	5			(15,091)	(4,016)
Profit before income tax	6			2,353,664	1,936,678
Income tax charge	8			(591,613)	(473,139)
Profit for the period				1,762,051	1,463,539
Attributable to equity holders of the parent				1,762,051	1,463,539
Earnings per share	9			P	P
Basic				16.64	13.84
Diluted				16.37	13.60

Consolidated STATEMENT OF FINANCIAL POSITION at 31 december 2012

				31/12/12	31/12/11
	Notes
				£	£
Assets
Non-current assets
Property, plant and equipment	10			268,268	212,867
Intangible assets	11			131,055	155,422
Goodwill	11			342,872	342,872
Investments held to maturity	12			278,916	194,885
Deferred income tax	8			6,832	12,758
Available-for-sale investments	13			46,055	280,549
				1,073,998	1,199,353
Current assets
Trade and other receivables	15			4,252,336	3,258,868
Investments held for trading	16			761	19,975
Cash and cash equivalents	17			3,606,577	2,109,961
				7,859,674	5,388,804
Total assets				8,933,672	6,588,157
Equity and liabilities
Capital and reserves
Share capital	18			106,015	105,720
Share premium				862,657	838,614
Merger reserve				9,900	9,900
Capital redemption reserve				9,845	9,845
Share option reserve				114,481	97,034
Retained earnings				1,469,605	899,394
Total equity attributable to the equity holders of the parent				2,572,503	1,960,507
Current liabilities	19
Trade and other payables	19			6,048,103	4,329,494
Income tax	19			313,066	298,156
Total current liabilities	19			6,361,169	4,627,650
Total equity and liabilities				8,933,672	6,588,157

CoMPANY STATEMENT OF FINANCIAL POSITION at 31 december 2012

				31/12/12	31/12/11
	Notes
				£	£
Assets
Non-current assets
Property, plant and equipment	10			268,268	212,867
Intangible assets	11			131,055	155,422
Goodwill	11			342,872	342,872
Deferred income tax	8			6,832	12,758
Available-for-sale investments	13			46,055	280,549
Investment in subsidiaries	14			280,999	276,379
				1,076,081	1,280,847
Current assets
Trade and other receivables	15			701,410	185,137
Cash and cash equivalents	17			1,274,114	854
				1,975,524	185,991
Total assets				3,051,605	1,466,838
Equity and liabilities
Capital and reserves
Share capital	18			106,015	105,720
Share premium				862,657	838,614
Capital redemption reserve				9,845	9,845
Share option reserves				114,481	97,034
Retained earnings				245,390	173,176
Total equity attributable to the equity holders				1,338,388	1,224,389
Current liabilities	19
Trade and other payables	19			1,559,235	226,284
Income tax	19			153,982	16,165
Total current liabilities	19			1,713,217	242,449
Total equity and liabilities				3,051,605	1,466,838

Consolidated statement of comprehensive income for the year

	Notes			Year to	Year to
				31/12/12	31/12/11*
				£	£
Profit for the period				1,762,051	1,463,539
Net income recognised directly in equity				-	-
Total comprehensive income for the period				1,762,051	1,463,539
Attributable to equity holders of the parent				1,762,051	1,463,539

COMPANY statement of comprehensive income for the year

	Notes			Year to	Year to
				31/12/12	31/12/11*
				£	£
Profit for the period				1,264,054	933,627
Net income recognised directly in equity				-	-
Total comprehensive income for the period				1,264,054	933,627
Attributable to equity holders of the company				1,264,054	933,627

* In the 2011 financial statements £67,118 was incorrectly included for the sale of treasury shares. Although not material to the financial statements the comparative has been corrected.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share capital	Share premium	Merger reserve	Capital redemption reserve	Fair value reserve	Share option reserve	Retained earnings	Own shares held in treasury	Total equity
	£	£	£	£	£	£	£	£	£
At 1 January 2011	105,710	837,799	9,900	9,845	21,928	79,264	507,531	(83,319)	1,488,658
Share options exercised during the year	10	815	-	-	-	-	-	-	825
Deferred tax charge to equity	-	-	-	-	8,110	-	-	-	8,110
Expense of employee options	-	-	-	-	-	17,770	-	-	17,770
Profit for the financial year	-	-	-	-	-	-	1,463,539	-	1,463,539
Dividends	-	-	-	-	-	-	(1,055,475)	-	(1,055,475)
Investment revaluation	-	-	-	-	(30,038)	-	-	-	(30,038)
Sale of treasury shares	-	-	-	-	-	-	(16,201)	83,319	67,118
At 31 December 2011	105,720	838,614	9,900	9,845	-	97,034	899,394	-	1,960,507
Share options exercised during the year	295	24,043	-	-	-	-	-	-	24,338
Expense of employee options	-	-	-	-	-	17,447	-	-	17,447
Profit for the financial year	-	-	-	-	-	-	1,762,051	-	1,762,051
Dividends	-	-	-	-	-	-	(1,191,840)	-	(1,191,840)
At 31 December 2012	106,015	862,657	9,900	9,845	-	114,481	1,469,605	-	2,572,503

COMPANY STATEMENT OF CHANGES IN EQUITY

	Share capital	Share premium	Capital redemption reserve	Fair value reserve	Share option reserve	Retained earnings	Own shares held in treasury	Total equity
	£	£	£	£	£	£	£	£
At 1 January 2011	105,710	837,799	9,845	21,928	79,264	311,225	(83,319)	1,282,452
Share options exercised during the year	10	815	-	-	-	-	-	825
Deferred tax charged to equity	-	-	-	8,110	-	-	-	8,110
Expense of employee options	-	-	-	-	17,770	-	-	17,770
Profit for the financial year	-	-	-	-	-	933,627	-	933,627
Dividends	-	-	-	-	-	(1,055,475)	-	(1,055,475)
Investment revaluation	-	-	-	(30,038)	-	-	-	(30,038)
Sale of treasury shares	-	-	-	-	-	(16,201)	83,319	67,118
At 31 December 2011	105,720	838,614	9,845	-	97,034	173,176	-	1,224,389
Share options exercised during the year	295	24,043	-	-	-	-	-	24,338
Expense of employee options	-	-	-	-	17,447	-	-	17,447
Profit for the financial year	-	-	-	-	-	1,264,054	-	1,264,054
Dividends	-	-	-	-	-	(1,191,840)	-	(1,191,840)
At 31 December 2012	106,015	862,657	9,845	-	114,481	245,390	-	1,338,388

statement OF cashflows

for the year ended 31 december 2012

		CONSOLIDATED		COMPANY
		Year to	Year to	Year to	Year to
		31/12/12	31/12/11	31/12/12	31/12/11
		£	£	£	£
Cash flow from operating activities
Profit before income tax		2,353,664	1,936,678	1,423,345	900,700
Depreciation and amortisation		68,228	86,562	52,259	81,380
Cost of share options		17,449	17,770	17,449	17,770
Finance costs		15,091	4,016	-	12
Impairment charge		24,914	83,314	24,914	83,314
Loss on disposal of investments		45,779	-	45,779	-
Loss on disposal of property, plant & equipments		-	3,875	-	3,875
		2,525,125	2,132,215	1,563,746	1,087,051
Decrease/(Increase) in trade and other receivables		(833,469)	1,319,433	(356,273)	64,298
Increase/(Decrease) in trade payables		1,718,608	188,213	1,332,950	190,605
Increase in investments in subsidiaries		-	-	(4,620)	(4,942)
(Increase)/Decrease in investments held for trading		19,214	(767)	-	-
Cash generated from operations		3,429,478	3,639,094	2,535,803	1,337,012
Interest paid		(15,091)	(4,016)	-	(12)
Income tax (paid)/received		(570,775)	(488,394)	(15,547)	-
Net cash from operating activities		2,843,612	3,146,684	2,520,256	1,337,000
Cash flows from investing activities
Purchase of property, plant and equipment		(80,294)	(172,223)	(80,294)	(174,647)
Disposal of property, plant and equipment		-	21,000	-	21,000
Receipt from sale of investment		3,800	-	3,800	-
Purchase of intangible assets		(3,000)	-	(3,000)	-
Purchase of investments and long term assets		(100,000)	(400,067)	-	(200,000)
		(179,494)	(551,290)	(79,494)	(353,647)
Cash flows from financing activities
Issue of share capital		24,338	825	24,338	825
Sale of shares held in treasury		-	67,118	-	67,118
Dividends paid		(1,191,840)	(1,055,475)	(1,191,840)	(1,055,475)
Net cash used in financing activities		(1,167,502)	(987,532)	(1,167,502)	(987,532)
Net increase/(decrease) in cash & cash equivalents		1,496,616	1,607,862	1,273,260	(4,179)
Cash and cash equivalents at the start of the year		2,109,961	502,099	854	5,033
Cash and cash equivalents at the end of the year		3,606,577	2,109,961	1,274,114	854
Cash and cash equivalents:
Cash at bank and in hand		3,606,577	2,109,961	1,274,114	854

Notes forming part of the financial statements

1. Basis of preparation

The company has adopted the requirements of International Financial Reporting Standards (IFRS) and IFRIC interpretations endorsed by the European Union (EU) and those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention as modified by the revaluation of available-for-sale financial assets, and financial assets and liabilities at fair value through profit or loss.

These financial statements have been prepared in accordance with the accounting policies set out below, which have been consistently applied to all the years presented. These accounting policies comply with applicable IFRS standards and IFRIC interpretations issued and effective at the time of preparing these statements.

At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):

IAS 27 Separate Financial Statements

IAS 28 Investments in Associates and Joint Ventures

IFRS 10 Consolidated Financial Statements

IFRS 11 Joint Arrangements

IFRS 12 Disclosure of Interests in Other Entities

IFRS 13 Fair Value Measurement

IFRS 9 Financial Instruments

Adoption of these Standards and Interpretations is not expected to have a material impact on the results of the Company or Group.

The preparation of financial statements in accordance with IFRS requires the use of certain accounting estimates. It also requires management to exercise judgement in the process of applying the Company's accounting policies.  The areas involving a high degree of judgement or complexity, or areas where the assumptions and estimates are significant to the consolidated financial statements, are disclosed in Note 23.

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Business Review on pages 3 to 8. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described within these financial statements. In addition, note 28 of the financial statements includes the Group's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposure to credit risk and liquidity risk.

The Group has considerable financial resources together with long term contracts with all its customers and significant suppliers as well as a diversified income stream. The Group does not have any current borrowing or any anticipated borrowing requirements. As a consequence, the directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook.

The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

2. Summary of significant accounting policies

(a) Revenue

Income is recognised as earned in the following way:

Commission - we charge commission on a transaction basis. Commission rates are fixed according to account type. When a client instructs us to act as an agent on their behalf (for the purchase or sale of securities) our commission is recognised as income. Our commission is deducted from the cash given to us by the client in order to settle the transaction on the client's behalf or from the proceeds of the sale in instance where a client sells securities.

Management fees - these are charged quarterly or bi-annually depending on account type. Fees are either fixed or are a percentage of the assets under administration. Fees are accrued up to the time they are charged using a day count and most recent asset level basis as appropriate.

Interest income - this is accrued on a day count basis up until deposits mature and the interest income is received. The deposits pay a fixed rate of interest. In accordance with FSA requirements, deposits are only placed with banks that have been approved by our compliance department.

(b) Basis of consolidation

Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a shareholding of more than half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on which control ceases. The group financial statements consolidate the financial statements of Jarvis Securities plc, Jarvis Investment Management Limited, JIM Nominees Limited, Galleon Nominees Limited and Dudley Road Nominees Limited made up to 31 December 2012.

The Group uses the purchase method of accounting for the acquisition of subsidiaries. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange.  Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The cost of acquisition over the fair value of the Group's share of identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the Group's share of the net assets of the subsidiary acquired, the difference is recognised in the income statement.

Intra-group sales and profits are eliminated on consolidation and all sales and profit figures relate to external transactions only. No income statement is presented for Jarvis Securities plc as provided by S408 of the Companies Act 2006. The profit for the year of Jarvis Securities plc, as approved by the board, was £1,264,054 (2011: £933,627).

(c) Property, plant and equipment

All property, plant and equipment is shown at cost less subsequent depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is provided on cost in equal annual instalments over the lives of the assets at the following rates:

Leasehold improvements	-	33% on cost, or over the lease period if less than three years.
Motor vehicles	-	15% on cost
Office equipment	-	20% on cost
Land & Buildings	-	Buildings are depreciated at 2% on cost. Land is not depreciated.

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the income statement. Impairment reviews of property, plant and equipment are undertaken if there are indications that the carrying values may not be recoverable or that the recoverable amounts may be less than the asset's carrying value.

(d) Intangible assets

Intangible assets are carried at cost less accumulated amortisation. If acquired as part of a business combination the initial cost of the intangible asset is the fair value at the acquisition date. Amortisation is charged to administrative expenses within the income statement and provided on cost in equal annual instalments over the lives of the assets at the following rates:

Databases	-	4% on cost
Customer relationships	-	7% on cost
Software developments	-	33% on cost
Website	-	33% on cost

Impairment reviews of intangible assets are undertaken if there are indications that the carrying values may not be recoverable or that the recoverable amounts may be less than the asset's carrying value.

(e) Goodwill

Goodwill represents the excess of the fair value of the consideration given over the aggregate fair values of the net identifiable assets of the acquired trade and assets at the date of acquisition. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Any negative goodwill arising is credited to the income statement in full immediately.

(f) Deferred income tax

Deferred income tax is provided in full, using the liability method, on differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting or taxable profit or loss. Deferred income tax is determined using tax rates that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries except where the timing of the reversal of the timing difference is controlled by the Group and it is probable that the temporary differences will not reverse in the foreseeable future.

(g) Segmental reporting

A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are different from those of other business segments. The directors regard the operations of the Group as a single segment.

(h) Pensions

The group operates a defined contribution pension scheme. Contributions payable for the year are charged to the income statement.

(i) Trade receivables and payables

Trading balances incurred in the course of executing client transactions are measured at initial recognition at fair value. In accordance with market practice, certain balances with clients, Stock Exchange member firms and other counterparties are included as trade debtors and creditors. The net balance is disclosed where there is a legal right of set off.

(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 profit before income tax. 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

The Group classifies its investments in the following categories: investments held to maturity, investments held for trading and available-for-sale investments. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at every reporting date.

Investments held to maturity

Investments held to maturity are stated at cost. Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity. Assets in this category are classified as non-current.

Investment held for trading

Investments held for trading are stated at fair value. An investment is classified in this category if acquired principally for the purpose of selling in the short term. Assets in this category are classified as current.

Available-for-sale investments

Available-for-sale investments are stated at fair value. They are included in non-current assets unless management intends to dispose of them within 12 months of the balance sheet date.

Purchases and sales of investments are recognised on the trade-date - the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value. Investments are derecognised when the rights to receive cash flows from the investments have expired or been transferred and the Group has transferred substantially all the risks and rewards of ownership. Realised and unrealised gains and losses arising from changes in fair value of investments held for trading are included in the income statement in the period in which they arise. Unrealised gains and losses arising in changes in the fair value of available-for-sale investments are recognised in equity. When investments classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as gains and losses from investment securities.

The fair value of quoted investments is based on current bid prices. If the market for an investment is not active, the Group establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, or discounted cash flow analysis refined to reflect the issuer's specific circumstances.

The Group assesses at each balance sheet date whether there is objective evidence that an investment is impaired. In the case of investments classified as available-for-sale, a significant or prolonged decline in the fair value below its cost is considered in determining whether the security is impaired.

Investments in subsidiaries

Investments in subsidiaries are stated at cost less provision for any impairment in value.

(l) Foreign Exchange

The group offers settlement of trades in sterling, US dollars, euros, Canadian dollars, Australian dollars, South African rand and Swiss francs. The group 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 in the income statement. Consequently the group has no foreign exchange risk.

(m) Share Capital

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from proceeds, net of income tax. Where the company purchases its equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income tax), is deducted from equity attributable to the company's equity holders until the shares are cancelled, reissued or disposed of.  Where such shares are subsequently sold or reissued, any consideration received, net of any directly incremental transaction costs and the related income tax effects, is included in equity attributable to the company's equity holders.

(n) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

(o) Current income tax

Current income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current or prior reporting periods, that are unpaid at the balance sheet date.  They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which they relate based on the taxable profit for the year.  

(p) Dividend distribution

Dividend distribution to the company's shareholders is recognised as a liability in the group's financial statements in the period in which interim dividends are notified to shareholders and final dividends are approved by the company's shareholders.

(q) Share based payments

The Group applies the requirements of IFRS 2 Share-based Payment and IFRIC 11.

The Group issues equity-settled share-based payments to certain employees and other personnel. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest and adjusted for the effects of non market-based vesting conditions.

Fair value is measured by use of a Black-Scholes option pricing model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.

3. Group revenue

The revenue of the group during the year was made in the United Kingdom and the revenue of the group for the year derives from the same class of business as noted in the Directors' Report.

	2012		2011
	£		£
Gross interest earned from treasury deposits, cash at bank and overdrawn client accounts	2,792,240		2,017,201
Fees, commissions, foreign exchange gains and other revenue	3,323,778		3,659,489
	6,116,018		5,676,690

4. Segmental information

All of the reported revenue and operational results for the period derive from the group's external customers and continuing financial services operations. All non-current assets are held within the United Kingdom.

The group is not reliant on any one customer and no customer accounts for more than 10% of the group's external revenues.

As the Group's sole business activity is the provision of stock broking services and all revenue is derived in the UK, management have not had occasion to define any factors to identify reportable segments.

5. Finance costs	2012		2011
	£		£
Interest on bank loans, overdrafts and tax	15,091		4,016
	15,091		4,016

6. Profit before income tax	2012		2011
Profit before income tax is stated after charging/(crediting):	£		£
Directors' emoluments	470,486		409,388
Depreciation - owned assets	24,893		46,491
Amortisation	27,366		34,889
Impairment	-		83,314
Operating lease rentals - hire of machinery	10,566		10,566
Operating lease rentals - land and buildings	63,500		63,500
Loss on disposal of fixed assets	-		3,875
Finance costs including bank transaction fees	60,827		66,674

Details of Directors' annual remuneration as at 31 December 2012 are set out below:

						2012		2011
						£		£
Fees						415,340		317,780
Pension contributions						33,430		71,293
Cost of share options						12,828		12,828
Benefits in kind						8,888		7,487
						470,486		409,388
Details of the highest paid director are as follows:
Aggregate emoluments						261,205		209,885
Company contributions to personal pension scheme						20,720		62,793
Benefits in kind						8,402		7,028
						290,327		279,706
					Emoluments & Benefits in kind	Pension		Total
Directors					£	£		£
Andrew J Grant					269,607	20,720		290,327
Nick J Crabb					110,949	9,110		120,059
Jolyon C Head					42,500	3,600		46,100
Graeme McAusland					14,000	-		14,000
TOTAL					437,056	33,430		470,486

During the year benefits accrued for three directors (2011 two directors) under a money purchase pension scheme. Jolyon C Head was appointed to The Board on 2nd July 2012. The remuneration details disclosed are for the period following his appointment as a director. Staff Costs
The average number of persons employed by the group, including directors, during the year was as follows:
	2012		2011
Management and administration	37		36
The aggregate payroll costs of these persons were as follows:	£		£
Wages, salaries & social security	1,344,541		1,273,811
Pension contributions including salary sacrifice	36,780		77,793
Cost of share options	17,449		17,770
	1,398,769		1,369,374

Key personnel

The directors disclosed above are considered to be the key management personnel of the group.

7. Auditors' remuneration
During the year the company obtained the following services from the company's auditors as detailed below:
	2012		2011
	£		£
Fees payable to the company's auditors for the audit of the company's annual financial statements	21,320		20,725
Fees payable to the company's auditors and its associates for other services:
The audit of the company's subsidiaries, pursuant to legislation	14,000		13,375
Total audit fees	35,320		34,100
Other services relating to taxation	5,937		3,850
All other services	1,500		4,150
	42,757		42,100

The audit costs of the subsidiaries were invoiced to and met by Jarvis Securities plc.

8. Income and deferred tax charges - group	2012		2011
	£		£
Based on the adjusted results for the year:
UK corporation tax	586,438		523,210
Adjustments in respect of prior years	(751)		(31,543)
Total current income tax	585,687		491,667
Deferred income tax:
Origination and reversal of timing differences	4,783		(3,277)
Adjustment in respect of change in deferred tax rate	549		1,021
Adjustment in respect of prior years	594		(16,272)
Total deferred tax charge	5,926		(18,528)
Income tax on profit	591,613		473,139
The income tax assessed for the year is greater than the standard rate of corporation tax in the UK (24.5%). The differences are explained below:
Profit before income tax	2,353,665		1,936,679
Profit before income tax multiplied by the standard rate of corporation tax in the UK of 24.5% (2011 - 26.5%)	576,648		513,220
Effects of:
Expenses not deductible for tax purposes	14,119		5,897
Adjustments to tax charge in respect of previous years	(202)		(47,815)
Small companies rate marginal relief	-		(4,633)
Ineligible depreciation	358		5,510
Adjustment in respect of change in deferred tax rate	690		960
Current income tax charge for the year	591,613		473,139

Movement in (assets) / provision - group:
Provision at start of year	(12,758)		13,880
Deferred income tax charged in the income statement for the year	5,377		(3,277)
Adjustment in respect of prior periods	549		(16,272)
Adjustment in respect of change in closing deferred tax rate	-		1,021
Deferred income tax charged to equity for the year	-		(8,110)
(Asset) / Provision at end of year	(6,832)		(12,758)
(Asset) / Provision for deferred income tax:
Accelerated capital allowances	(6,832)		(12,758)
	(6,832)		(12,758)

Movement in (asset) / provision - company:
Provision at start of year	(12,758)		21,972
Deferred income tax charged in the income statement for the year	5,377		(2,622)
Adjustment in respect of prior periods	549		(25,019)
Adjustment in respect of change in closing deferred tax rate	-		1,021
Deferred income tax charged to equity for the year	-		(8,110)
(Asset) / Provision at end of year	(6,832)		(12,758)
(Asset) / Provision for deferred income tax:
Accelerated capital allowances	(6,832)		(12,758)
	(6,832)		(12,758)

The gross movements in the deferred tax account for the company and group are as follows:			Tangible Assets
Provision at start of year			(12,758)
Income statement charge			5,926
(Asset) / Provision at end of year			(6,832)

9. Earnings per share				2012		2011
				£		£
Earnings: Earnings for the purposes of basic and diluted earnings per share
(profit for the period attributable to the equity holders of the parent)				1,762,051		1,463,539
Number of shares:
Weighted average number of ordinary shares for the purposes of basic earnings per share				10,586,750		10,571,500
Effect of dilutive potential ordinary shares:
Share option scheme				179,807		193,106
				10,766,557		10,764,606

No treasury shares were held during the period. Options exercised or those lapsed as relating to former employees have been deducted for the purpose of calculating the diluted weighted average number of shares in issue for the period.

10. Property, plant & equipment - group				Freehold Land & Property	Leasehold Improvements	Motor Vehicles	Office Equipment		Total
Cost:				£	£	£	£		£
At 1 January 2011				-	288,342	34,000	212,552		534,894
Additions				165,967	-	-	6,257		172,224
Disposals				-	-	(34,000)	-		(34,000)
At 31 December 2011				165,967	288,342	-	218,809		673,118
Additions				56,483	-	-	23,811		80,294
Disposals				-	-	-	-		-
At 31 December 2012				222,450	288,342	-	242,620		753,412
Depreciation:
At 1 January 2011				-	267,548	8,075	147,262		422,885
Charge for the year				-	20,794	1,050	24,647		46,491
On Disposal				-	-	(9,125)	-		(9,125)
At 31 December 2011				-	288,342	-	171,909		460,251
Charge for the year				1,462	-	-	23,431		24,893
On Disposal				-	-	-	-		-
At 31 December 2012				1,462	288,342	-	195,340		485,144
Net Book Value:
At 31 December 2012				220,988	-	-	47,280		268,268
At 31 December 2011				165,967	-	-	46,900		212,867

The addition in freehold land and property relates to the development of a disaster recovery site.

10 (continued). Property, plant & equipment - company				Freehold Land & Property	Leasehold Improvements	Motor Vehicles	Office Equipment		Total
Cost:				£	£	£	£		£
At 1 January 2011				-	288,342	34,000	209,859		532,201
Additions				165,967	-	-	8,681		174,648
Disposals				-	-	(34,000)	-		(34,000)
At 31 December 2011				165,967	288,342	-	218,540		672,849
Additions				56,483	-	-	23,811		80,294
Disposals				-	-	-	-		-
At 31 December 2012				222,450	288,342	-	242,351		753,143
Depreciation:
At 1 January 2011				-	267,548	8,075	146,993		422,616
Charge for the year				-	20,794	1,050	24,647		46,491
On Disposal				-	-	(9,125)	-		(9,125)
At 31 December 2011				-	288,342	-	171,640		459,982
Charge for the year				1,462	-	-	23,431		24,893
On Disposal				-	-	-	-		-
At 31 December 2012				1,462	288,342	-	195,071		484,875
Net Book Value:
At 31 December 2012				220,988	-	-	47,280		268,268
At 31 December 2011				165,967	-	-	46,900		212,867

11. Intangible assets & goodwill - group & company		Goodwill		Intangible assets
				Customer Relationships	Databases	Software Development	Website		Total
		£		£	£	£	£		£
Cost:
At 1 January 2011		342,872		261,295	25,000	33,815	103,519		423,629
Additions		-		-	-	-	-		-
Impairment		-		(83,314)	-	-	-		(83,314)
Disposals		-		-	-	-	-		-
At 31 December 2011		342,872		177,981	25,000	33,815	103,519		340,315
Additions		-		-	-	3,000	-		3,000
Impairment		-		-	-	-	-		-
Disposals		-		-	-	-	-		-
At 31 December 2012		342,872		177,981	25,000	36,815	103,519		343,315
Amortisation:
At 1 January 2011		-		28,855	7,719	17,992	95,438		150,004
Charge for the year		-		18,291	1,000	9,398	6,200		34,889
On Disposal		-		-	-	-	-		-
At 31 December 2011		-		47,146	8,719	27,390	101,638		184,893
Charge for the year		-		18,290	1,000	6,425	1,652		27,367
On Disposal		-		-	-	-	-		-
At 31 December 2012		-		65,436	9,719	33,815	103,290		212,260
Net Book Value:
At 31 December 2012		342,872		112,545	15,281	3,000	229		131,055
At 31 December 2011		342,872		130,835	16,281	6,425	1,881		155,422

In reviewing the value of goodwill for impairment, the directors have assumed an attrition rate of 7.0% based upon the actual rate for the previous period and a discount rate of 2.0%. The discounted cashflow is calculated over a period of 5 years. For impairment to the goodwill value to occur, the attrition rate would need to exceed 16.0% or the discount rate would need to exceed 9.5%.

During a prior period the businesses of seven commercial clients were acquired following the failure of those businesses under the terms of the contractual agreements in place. The fair value of the customer contractual and non-contractual relationships was £386,143. The current value of these relationships in the accounts is £112,545. To estimate their fair value, a discounted cashflow method, specifically the income approach, was used with reference to the contractual terms and management estimates of the level of revenue which will be generated from the customer relationships. An attrition rate of 7% and weighted average cost of capital of 2% was used for the valuation. During the current period an impairment review of the customer relationships recognised in the prior period was conducted in accordance with IAS 36. This resulted in no impairment charge to the customer contractual and non-contractual relationships. The impairment review applied the actual attrition rate seen over the prior year and to each relationship and used a weighted average cost of capital of 2%. If the weighted average cost of capital were increased to 3% the additional impairment would be £4,152.

12. Investments held to maturity	Group				Company
	2012		2011		2012		2011
Unlisted Investments:	£		£		£		£
Cost:
At 1 January	200,067		-		-		-
Additions	100,000		200,067		-		-
Disposals on maturity	-		-		-		-
As at 31 December	300,067		200,067		-		-
Amortisation:
At 1 January	5,182		-		-		-
Charge for the year	15,969		5,182		-		-
As at 31 December	21,151		5,182		-		-
Net Book Value:
At 1 January	194,885		-		-		-
At 31 December	278,916		194,885		-		-

The investment held to maturity is an 8% coupon UK Government Gilt maturing in 2015.

13. Available-for-sale investments	Group				Company
	2012		2011		2012		2011
Listed Investments:	£		£		£		£
Cost:
At 1 January	36,099		66,137		36,099		66,137
Disposals	(5,780)		-		(5,780)		-
On revaluation	(28,714)		(30,038)		(28,714)		(30,038)
As at 31 December	1,605		36,099		1,605		36,099

Listed investments are stated at their market value at 31 December 2012. Listed investments are interests held in the following company registered in the United Kingdom:
	Shareholding		Holding	Business
Alexander David Securities Group plc	1.08%	8,025,000	1p Ordinary shares	Stockbrokers

	Group				Company
	2012		2011		2012		2011
Unlisted Investments:	£		£		£		£
Cost:
At 1 January	244,450		44,450		244,450		44,450
Additions Disposals	- (200,000)		200,000 -		- (200,000)		200,000 -
As at 31 December	44,450		244,450		44,450		244,450

Unlisted investments are stated at market value. Unlisted investments are interests held in the following company registered in the United Kingdom:
	Shareholding	Holding	Business
Alexander David Securities Group plc	£44,450 at par	Preference shares	Stockbrokers

On 31 December 2012 Jarvis Securities sold its entire holding in Hubwise Holding Limited for £160,000.

14. Investments in subsidiaries					Company
					2012		2011
Unlisted Investments:					£		£
Cost:
At 1 January					276,379		271,437
Additions					-		-
Capital contributions re share option costs					4,620		4,942
As at 31 December					280,999		276,379

	Shareholding		Holding	Business
Jarvis Investment Management Limited	100%	25,000,000	1p Ordinary shares	Financial administration
Dudley Road Nominees Limited*	100%	2	£1 Ordinary shares	Dormant nominee company
JIM Nominees Limited*	100%	1	£1 Ordinary shares	Dormant nominee company
Galleon Nominees Limited*	100%	2	£1 Ordinary shares	Dormant nominee company
* indirectly held

15. Trade and other receivables	Group				Company
Amounts falling due within one year:	2012		2011		2012		2011
	£		£		£		£
Trade receivables	474,109		350,895		168,123		400
Settlement receivables	3,111,558		2,365,132		-		-
Amounts owed by group undertakings	-		-		-		-
Other receivables	47,216		47,401		15,875		23,938
Prepayments and accrued income	619,453		495,440		517,412		160,799
	4,252,336		3,258,868		701,410		185,137

16. Investments held for trading	Group				Company
	2012		2011		2012		2011
Listed Investments:	£		£		£		£
Valuation:
At 1 January	19,975		19,208		-		-
Additions	770,375		234,718		-		-
Disposals	(789,589)		(233,951)		-		-
As at 31 December	761		19,975		-		-
Listed investments are stated at their market value at 31 December 2012.

17. Cash and cash equivalents	Group				Company
	2012		2011		2012		2011
	£		£		£		£
Balance at bank and in hand - group/company	3,606,577		2,109,961		1,274,114		854
	3,606,577		2,109,961		1,274,114		854

18. Share capital	2012		2011
	£		£
At 1 January 2012	105,720		105,710
Allotted, issued and fully paid during the year	295		10
Allotted, issued and fully paid:
10,601,500 (2011: 10,572,000) Ordinary shares of 1p each	106,015		105,720

The company has one class of ordinary shares which carry no right to fixed income.

The Company has a share option scheme for certain employees of the Group. The vesting period is five years. If the options remain unexercised after a period of ten years from the date of grant the options expire. Options are forfeited if the option holder leaves the Group before the options are vested and exercised.

Details of the share options outstanding during the year are as follows:

	2012				2011
	Number of share options		Weighted average exercise price		Number of share options		Weighted average exercise price
			Pence				Pence
Outstanding at the beginning of the year	658,000		125.46		659,000		125.60
Exercised during the year	(29,500)		82.50		(1,000)		82.50
Outstanding at year end	628,500		127.49		658,000		125.46
Exercisable at year end	528,500		82.50		378,000		82.50
A detailed breakdown of the exercise prices for options outstanding as at 31 December 2012 is shown in the table below:
	2012				2011
Exercise Price (pence)	Number outstanding at year end		Exercise dates		Number outstanding at year end		Exercise dates
82.50 (granted 23 Dec 2004)	348,500		23 Dec 2009 to 23rd Dec 2014		378,000		23 Dec 2009 to 23rd Dec 2014
175.00 (granted 18 May 2007)	180,000		17 May 2012 to 17 May 2017		180,000		17 May 2012 to 17 May 2017
200.00 (granted 12 May 2009)	100,000		12 May 2014 to 12 May 2019		100,000		12 May 2014 to 12 May 2019

The total number of options unexercised and in issue at the year end is 628,500. The weighted average share price for the year was 170p (2011: 169p).

The following options are held by directors:

	at 82.5p		at 175p		at 200p
A J Grant	273,500		76,500		-
N J Crabb	-		-		100,000

19. Trade and other payables	Group				Company
Amounts falling due within one year:	2012		2011		2012		2011
	£		£		£		£
Trade payables	255,446		201,672		698		6,526
Settlement payables	5,502,408		3,873,660		-		-
Amount owed to group undertaking	-		-		1,525,921		192,213
Other taxes and social security	34,992		22,430		1,100		-
Other payables & provisions	92,368		42,072		6,015		5,545
Accruals	162,889		189,660		25,501		22,000
Trade and other payables	6,048,103		4,329,494		1,559,235		226,284
Income tax	313,066		298,156		153,982		16,165
Total liabilities	6,361,169		4,627,650		1,713,217		242,449

20. Dividends	2012		2011
	£		£
Interim dividends paid on Ordinary 1p shares	1,191,840		1,055,475
Dividend per Ordinary 1p share	11.25p		10p

21. Operating lease commitments - group

At 31 December 2012 the group was committed to making the following payments in respect of operating leases which expire:

	Equipment				Land & buildings
	2012		2011		2012		2011
	£		£		£		£
Between one and five years:	8,736		19,302		301,625		-
After more than five years:	-		-		-		365,125

Operating lease commitments - company

At 31 December 2012 the company was committed to making the following payments in respect of operating leases which expire:

					Land & buildings
					2012		2011
					£		£
Between one and five years:					301,625		-
After more than five years:					-		365,125

The company has a lease with Sion Holdings Limited, a company controlled by A J Grant, for the rental of 78 Mount Ephraim, a self-contained office building. The lease has an annual rental of £63,500, being the market rate on an arm's length basis, and expires on 26 September 2017.

22. Financial Instruments

The group's principal financial instruments comprise cash, short terms borrowings and various items such as trade receivables, trade payables etc. that arise directly from operations. The main purpose of these financial instruments is the funding of the group's trading activities.

The main financial asset of the group is cash and cash equivalents which is denominated in sterling and which is detailed in note 17. The group operates a low risk investment policy and surplus funds are placed on deposit with at least A rated banks or equivalent at floating interest rates.

The group also holds investments in equities and gilts. 

23. Critical accounting estimates and judgements

The Group makes estimates and assumptions concerning the future. These estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets within the next financial year relate to goodwill, intangible assets, bad debts and the expense of employee options.

As of 31 December 2012, trade receivables of £172,705 (2011: £146,115) were impaired and partially provided for. The amount of the provision was £86,352 as at 31 December 2012 (2011: £36,528). The individually impaired receivables relate to clients who are in a loan position and who do not have adequate stock to cover these positions. The amount of the impairment is determined by clients' perceived willingness and ability to pay the debt, legal judgements obtained in respect of, charges secured on properties and payment plans in place and being adhered to. Where debts are determined to be irrecoverable they are written off through the income and expenditure account.

	Group				Company
Provision of impairment of receivables:	2012		2011		2012		2011
	£		£		£		£
At 1 January	36,528		32,392		-		-
Charge / (credit) for the year	125,139		(12,983)		-		-
Uncollectable amounts written off	(75,315)		(27,801)		-		-
Amounts written back	-		44,920		-		-
At 31 December	86,352		36,528				-

The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in Note 2 (e). These calculations require the use of estimates. The assumptions and sensitivity relating to the impairment tests are detailed in note 11.

The Group considers at least annually whether there are indications that the carrying values of intangible assets may not be recoverable, or that the recoverable amounts may be less than the asset's carrying value, in which case an impairment review is performed. These calculations require the use of estimates. The Groups also calculates the implied levels of variables used in the calculations at which impairment would occur.

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. If this did not occur profitability would be increased. Applying the Black Scholes method, the effect of a 1% reduction in the assumed risk free rate is a reduction of £20,881 in the value of the options outstanding at 31 December 2012.

24. Immediate and ultimate parent undertaking

The company's immediate and ultimate parent undertaking is Sion Securities Limited, a company registered in England and Wales.  The largest set of accounts that Jarvis Securities plc is consolidated into is that of Sion Securities Limited. Sion Securities Limited is controlled by Mr A J Grant by virtue of his majority shareholding. Consolidated financial statements are available from Sion Securities Limited at its registered office address of 78 Mount Ephraim, Tunbridge Wells, Kent, TN4 8BS.

25. Related party transactions

The company has a lease with Sion Holdings Limited, a company controlled by A J Grant by virtue of his majority shareholding, for the rental of 78 Mount Ephraim, a self-contained office building. The lease has an annual rental of £63,500, being the market rate on an arm's length basis, and expires on 26 September 2017.

Jarvis Securities plc paid a performance related management charge to Jarvis Investment Management Limited of £490,000 (2011: Jarvis Investment Management Limited paid Jarvis Securities Limited £433,000) during the year. Jarvis Securities plc owed Jarvis Investment Management Limited £1,521,796 (2011: £192,213) at year end.

On 6^th August 2012 Mr A J Grant resigned from The Board of Alexander David Securities Group plc. In prior years Alexander David Securities Group plc was a related party by virtue of the fact that Mr A J Grant serves as a Non-Executive Director. In 2011 Jarvis Investment Management Limited earned commission and fees of £105,084 for the provision of outsourcing, execution, trade capture, settlement and related services. As at 31 December 2011 Jarvis Investment Management Limited's immediate parent undertaking, Jarvis Securities plc, also owned £44,500 of preference shares and 17,636,460 ordinary 1p shares (representing 2.38% of the total shareholding) in Alexander David Securities Group plc.

As at 31 December 2012 Sion Securities, the company's immediate and ultimate parent undertaking, had £307,260 (2011 £328,750) of cash deposited with Jarvis Investment Management Limited. Sion Holdings Limited, a company controlled by A J Grant by virtue of his majority shareholding, had £193,923.31 (2011: nil) of cash deposited with Jarvis Investment Management Limited at 31 December 2012. Sion Properties Limited, a company controlled by A J Grant by virtue of his majority shareholding, had £5,742 (2011: 70,300) deposited with Jarvis Investment Management Limited.

26. Capital commitments

As of 31 December 2012 the company had no capital commitments (2011: £50,000).

27. Fair value estimation

The fair value of financial instruments traded in active markets (such as trading and available for sale securities) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the company is the current bid price. The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.

28. Financial risk management objectives and policies

The directors consider that their main risk management objective is to monitor and mitigate the key risks to the Group, which are considered to be principally credit risk, compliance risk, liquidity risk and operational risk.  Several high-level procedures are in place to enable all risks to be better controlled. These include detailed profit forecasts, cash flow forecasts, monthly management accounts and comparisons against forecast, regular meetings of the full Board of Directors, and more regular senior management meetings. 

The group's main credit risk is exposure to the trading accounts of clients. This credit risk is controlled via the use of credit algorithms within the computer systems of the subsidiary. These credit limits prevent the processing of trades in excess of the available maximum permitted margin at 50% of the current portfolio value of a client.

A further credit risk exists in respect of trade receivables. The group's policy is to monitor trade and other receivables and avoid significant concentrations of credit risk. Aged receivables reports are reviewed regularly and significant items brought to the attention of senior management.

The compliance risk of the group is controlled through the use of robust policies, procedures, the segregation of tasks, internal reviews and systems controls. These processes are based upon the Rules and guidance notes of the Financial Services Authority and the London Stock Exchange and are overseen by the compliance officer together with the management team. In addition, regular compliance performance information is prepared, reviewed and distributed to management.

The group aims to fund its expansion plans mainly from existing cash balances without making use of bank loans or overdraft facilities. Financial risk is therefore mitigated by the maintenance of positive cash balances and by the regular review of the banks used by the Group. Other risks, including operational, reputational and legal risks are under constant review at senior management level by the executive directors and senior managers at their regular meetings, and by the full board at their regular meetings. 

The Group derives a significant proportion of its revenue from interest earned on client cash deposits and does not have any borrowings. Hence, the directors do not consider the Group to be materially exposed to interest rate risk in terms of the usual consideration of financing costs, but do note that there is a risk to earnings. Given the current Bank of England base rate is at its lowest level since its foundation in 1694, and the business has remained profitable, this risk is not considered material in terms of a threat to the long term prospects of the Group.

The capital structure of the Group consists of issued share capital, reserves and retained earnings. Jarvis Investment Management Limited has an Internal Capital Adequacy Assessment Process ("ICAAP"), as required by the Financial Services Authority ("FSA") for establishing the amount of regulatory capital to be held by that company. The ICAAP gives consideration to both current and projected financial and capital positions. The ICAAP is updated throughout the year to take account of any significant changes to business plans and any unexpected issues that may occur. The ICAAP is discussed and approved at a board meeting of the subsidiary at least annually. Capital adequacy is monitored daily by management. Jarvis Investment Management Limited uses the simplified approach to Credit Risk and the standardised approach for Operational Risk to calculate Pillar 1 requirements. Jarvis Investment Management Limited observed the FSA's regulatory requirements throughout the period. Information disclosure under Pillar 3 of the Capital Requirements Directive is available from the Group's websites.

The directors do not consider that the Group is materially exposed to foreign exchange risk as the Group does not run open currency positions beyond the end of each working day.

 

END

 

 

FR TMMRTMBTTBMJ