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Jarvis Securities (JIM)

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Tuesday 29 January, 2008

Jarvis Securities

Results to 31 December 2007

Jarvis Securities plc
29 January 2008


                              Jarvis Securities plc
                                        
                          ('Jarvis' or 'the Company')
                                       
        Statement of audited results for the year ended 31 December 2007
                                        

Highlights:

   • Final dividend +140%
   • Earnings per share +114%
   • Profit before income tax +96%
   • Revenue +32%


Final Dividend:


The Board propose an increase in the final dividend to 6.0p (2006 2.5p) per
Ordinary 1p share to holders on the register at 8 February 2008 and payable on
14 March 2008. The ex-date for the dividend will be 6 February 2008.


CHAIRMAN'S STATEMENT

A review of the financial highlights and main statements will clearly
demonstrate that it has been another fantastic year for the group. We have been
very successful at increasing our client numbers, trade volumes, assets under
management, profits and proposed final dividend. No less important, we have
maintained or improved the situation with our non-financial key performance
indicators as well.

2007 has certainly been a significant milestone in the growth of the business as
in addition to the improvements in our retail business we have experienced
significant uptake in our outsourced services offering too. Approximately 25% of
our revenue now comes from commercial clients and this is an important
improvement in the quality and sustainability of our income for the future.
Indeed, we view Jarvis as an administration and outsourcing operation rather
than an execution-only brokerage. This differentiation of our model and
continued concentration on efficiency should reward us with a higher rating than
ordinary brokerage firms due to the robust and resilient earnings from our
services. I remain disappointed that this message has not been fully understood
by the market in rating our shares and we shall continue to promote the special
advantages of Jarvis during 2008.

It is easy to become blase about the scale of achievement when referring to our
recent history. It is timely to reflect on the fact that we have an internal aim
of 20% growth in profits each year. This is a very demanding goal in itself.
However, we were forecast to generate profit before income tax of £1.4M at the
start of the year and this broker forecast has been upgraded several times.
Despite a very challenging final forecast of £2.2M it is extremely pleasing to
note that we have been able to exceed even this level. Whilst I remain confident
in Jarvis and its performance for the future, we need to keep in mind what a
realistic aim for growth should be. Conditions have deteriorated in the market
recently and the interest rate environment may also be turning lower. Having
made that caveat though, our pipeline of enquiries is good and there remain a
number of new commercial clients in the process of going live. In addition, the
number of trades and accounts of our current commercial clients also continue to
rise and volatility is still beneficial to our core business as we are not
responsible for managing the performance of client portfolios. Whilst 2008 will
no doubt have its challenges, we expect to improve performance again in the
coming year at this stage. I shall, of course, keep members updated on our
progress during the next 12 months just as we have during the last 12 months.

Jarvis will shortly be moving offices to newly renovated, larger and
self-contained premises. We have only been in our current premises for five
years and when we moved we anticipated that they would have sufficient room for
growth for many years. We have gone on to expand faster than expected and this
presented us with a problem, albeit for positive reasons. It is imperative that
we are positioned for further demand for our services and for assisting our
increasing and growing existing client base. We have therefore taken the
decision to move into larger premises that have capacity for a significant
increase in the number of staff that we now have. This will leave us very well
placed to cope with the potential demand. We have also been able to make a
number of specific improvements during the refit that should help improve the
efficiency of the operation even further. This will be an exciting development
for Jarvis.

I would like to thank the entire team for the outstanding efforts made all
round. It is just as pleasing to note the improvements in complaint ratios or
call handling for me, as it is the jump in revenue and profits. These are the
situations that our individuals endeavour to improve upon every day. We strive
for efficiency and we have a committed and professional team that are driving
Jarvis forward. I am sure that all our members would like to join me in
advancing praise once again for the truly magnificent achievements of the group
over the past year.

Andrew J. Grant
Chairman


       CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2007

                                                         Year to       Year to
                                                        31/12/07      31/12/06
                                             Notes
----------------------------------------  --------    ----------    ----------
                                                               £             £
Continuing operations:
Revenue                                          3     4,519,116     3,419,658

Administrative expenses                               (2,210,693)   (2,255,165)

Finance costs                                    5       (26,946)       (2,605)
----------------------------------------  --------    ----------    ----------
Profit before income tax                         6     2,281,477     1,161,888

Income tax charge                                8      (633,710)     (364,322)
----------------------------------------  --------    ----------    ----------
Profit for the period                           17     1,647,767       797,566
========================================  ========    ==========    ==========

Attributable to equity holders of the                  
parent                                                 1,647,767       797,566
========================================  ========    ==========    ==========

Earnings per share                               9             p             p

Basic                                                      14.91          6.98
Diluted                                                    13.98          6.60


               CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2007

                                                    31/12/07          31/12/06
                                    Notes
-------------------------------  --------         ----------        ----------
                                                           £                 £
Assets
Non-current assets
Property, plant and equipment          10             87,347           105,175
Intangible assets                      11             38,485            60,793
Goodwill                               11            342,872           342,872
Investments held to maturity           12             20,000                 -
Deferred income tax                     8             79,407                 -
-------------------------------  --------         ----------        ----------
                                                     568,111           508,840
Current assets
Trade and other receivables            13          8,293,218         5,710,459
Investments held for trading           14             21,599            34,186
Cash and cash equivalents              15          8,962,187         6,561,264
-------------------------------  --------         ----------        ----------
                                                  17,277,004        12,305,909
-------------------------------  --------         ----------        ----------
Total assets                                      17,845,115        12,814,749
===============================  ========         ==========        ==========

Equity and liabilities

Capital and reserves                   17
Share capital                          16            108,000           113,500
Share premium                          17            789,834           789,834
Capital redemption reserve             17              6,845             1,345
Other reserves                         17             34,010            17,696
Retained earnings                      17            695,329           688,886
Own shares held in treasury            17             (1,930)          (69,793)
-------------------------------  --------         ----------        ----------
Total equity                           17          1,632,088         1,541,468
Non-current liabilities
Deferred income tax                     8                  -            13,130
-------------------------------  --------         ----------        ----------
Current liabilities                    18
Trade and other payables                          15,609,935        10,909,451
Income tax                              8            603,092           350,700
-------------------------------  --------         ----------        ----------
Total liabilities                      18         16,213,027        11,260,151
-------------------------------  --------         ----------        ----------
Total equity and liabilities                      17,845,115        12,814,749
===============================  ========         ==========        ==========


                  COMPANY BALANCE SHEET AS AT 31 DECEMBER 2007

                                                     31/12/07         31/12/06
                                      Notes
---------------------------------  --------        ----------       ----------
                                                            £                £
Assets
Non-current assets
Property, plant and equipment            10            87,347          105,175
Intangible assets                        11            38,485           60,793
Goodwill                                 11           342,872          342,872
Investments held to maturity             12           120,300          100,300
Deferred income tax                       8            79,407                -
---------------------------------  --------        ----------       ----------
                                                      668,411          609,140
Current assets
Trade and other receivables              13           428,770          472,371
Cash and cash equivalents                15             4,115            2,905
---------------------------------  --------        ----------       ----------
                                                      432,885          475,276
---------------------------------  --------        ----------       ----------
Total assets                                        1,101,296        1,084,416
=================================  ========        ==========       ==========

Equity and liabilities

Capital and reserves                     17
Share capital                            16           108,000          113,500
Share premium                            17           779,934          779,934
Capital redemption reserve               17             6,845            1,345
Other reserves                           17            34,010           17,696
Retained earnings                        17            95,468          156,694
Own shares held in treasury              17            (1,930)         (69,793)
---------------------------------  --------        ----------       ----------
Total equity                             17         1,022,327          999,376
Non-current liabilities
Deferred income tax                       8                 -           13,130
---------------------------------  --------        ----------       ----------
Current liabilities                      18
Trade and other payables                               75,896           71,910
Income tax                                8             3,073                -
---------------------------------  --------        ----------       ----------
Total liabilities                        18            78,969           71,910
---------------------------------  --------        ----------       ----------
Total equity and liabilities                        1,101,296        1,084,416
=================================  ========        ==========       ==========


      CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE YEAR

                                      Notes           Year to          Year to
                                                     31/12/07         31/12/06
---------------------------------  --------        ----------       ----------
                                                            £                £

Purchase of own shares                   17        (1,125,013)        (333,228)
Sale of shares from treasury             17           252,247          159,990
Deferred tax asset on share 
options                                   8            29,305                -
---------------------------------  --------        ----------       ----------
Net income recognised directly 
in equity                                            (843,461)        (173,238)

Profit for the period                    17         1,647,767          797,566
---------------------------------  --------        ----------       ----------
Total recognised income and 
expense for the period                                804,306          624,328
=================================  ========        ==========       ==========
Attributable to equity
holders of the parent                                 804,306          624,328
=================================  ========        ==========       ==========

            CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR

                        Share      Share     Capital       Other     Retained   Own shares   Attributable
                      capital    premium  redemption    reserves     earnings         held      to equity
                                             reserve                                           holders of
                                                                                               the parent
-------------------- --------    -------     -------    --------      -------     --------       --------
                            £          £           £           £            £            £              £

Balance at 1/1/06     114,845    789,834           -       8,848      472,412      (18,879)     1,367,060
Purchase of own 
shares                      -          -           -           -            -     (333,228)      (333,228)
Sale of shares
from treasury               -          -           -           -            -      159,990        159,990
-------------------- --------    -------     -------    --------      -------     --------       --------
Net income
recognised directly 
in equity                   -          -           -           -            -     (173,238)      (173,239)
-------------------- --------    -------     -------    --------      -------     --------       --------
Cancellation of own 
shares                 (1,345)         -       1,345           -     (122,324)     122,324              -
Expense of employee
options                     -          -           -       8,848            -            -          8,848
Profit for the period       -          -           -           -      797,566            -        797,566
Dividends                   -          -           -           -     (458,768)           -       (458,768)
-------------------- --------    -------     -------    --------      -------     --------       --------
Balance at 31/12/06   113,500    789,834       1,345      17,696      688,886      (69,793)     1,541,468
Purchase of own 
shares                      -          -           -           -            -   (1,125,013)    (1,125,013)
Sale of shares
from treasury               -          -           -           -            -      252,247        252,247
Deferred tax asset 
on share options            -          -           -           -       29,305            -         29,305
-------------------- --------    -------     -------    --------      -------     --------       --------
Net income 
recognised directly 
in equity                   -          -           -           -       29,305     (872,766)      (843,461)
-------------------- --------    -------     -------    --------      -------     --------       --------
Cancellation of own 
shares                 (5,500)         -       5,500           -     (940,629)     940,629              -
Expense of employee
options                     -          -           -      16,314            -            -         16,314
Profit for the
period                      -          -           -           -    1,647,767            -      1,647,767
Dividends                   -          -           -           -     (730,000)           -       (730,000)
-------------------- --------    -------     -------    --------      -------     --------       --------
Balance at 31/12/07   108,000    789,834       6,845      34,010      695,329       (1,930)     1,632,088


                                     CASHFLOW STATEMENTS
                             FOR THE YEAR ENDED 31 DECEMBER 2007

                                           CONSOLIDATED                 COMPANY

                                        Year to      Year to       Year to     Year to
                                       31/12/07      31/12/06     31/12/07    31/12/06
--------------------------------      ---------    ---------     ---------    --------
                                              £            £             £           £
Cash flow from operating
activities
Profit before income tax              2,281,477    1,161,888     1,519,939     744,104

Loss on disposal of
property, plant and equipment                 -          749             -         749
Depreciation and amortisation            64,376       80,385        64,376      80,385
Cost of share options                    16,314        8,848        16,314       8,848
Finance costs                            26,946        2,605          (983)         48
--------------------------------      ---------    ---------     ---------    --------
                                      2,389,113    1,254,475     1,599,646     834,134

Decrease/(increase) in trade and 
other receivables                        18,201     (581,828)       22,601    (163,414)
Decrease/(increase) in investments 
held for trading                         12,587       (1,009)            -           -
Increase in trade payables              107,693       50,356         3,986       8,841
--------------------------------      ---------    ---------     ---------    --------
Cash generated from operations        2,527,594      721,994     1,626,233     679,561

Interest paid                           (26,946)      (2,605)            -         (48)
Interest received                             -            -           983           -
Income tax paid                        (444,550)    (201,932)       21,000           -
--------------------------------      ---------    ---------     ---------    --------
Net cash from operating
activities                            2,056,098      517,457     1,648,216     679,513

Cash flows from investing
activities
Purchase of property, plant and 
equipment                               (24,240)     (64,659)      (24,240)    (64,659)
Proceeds on disposal of property, 
plant and equipment                           -       15,977             -      15,977
Purchase of other long term 
assets                                  (20,000)           -       (20,000)          -
--------------------------------      ---------    ---------     ---------    --------
                                        (44,240)     (48,682)      (44,240)    (48,682)
Cash flows from financing
activities
Proceeds from sale of
treasury shares                         252,247      159,990       252,247     159,990
Purchase of own shares               (1,125,013)    (333,228)   (1,125,013)   (333,228)
Dividends paid                         (730,000)    (458,768)     (730,000)   (458,768)
--------------------------------      ---------    ---------     ---------    --------
Net cash used in
financing activities                 (1,602,766)    (632,006)   (1,602,766)   (632,006)

Net increase/(decrease) in cash 
and cash equivalents                    409,092     (163,231)        1,210      (1,175)
Cash and cash equivalents at the
start of the year                       471,499      634,730         2,905       4,080
--------------------------------      ---------    ---------     ---------    --------
Cash and cash equivalents at the 
end of the year                         880,591      471,499         4,115       2,905
--------------------------------      ---------    ---------     ---------    --------
Client cash held in the course 
of settlement                         8,081,596    6,089,765             -           -
Balance at bank and in
hand (note 15)                        8,962,187    6,561,264         4,115       2,905
================================      =========    =========     =========    ========


                 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 1985 applicable to companies reporting
under IFRS for the first time for the purpose of preparing financial statements
for the year ended 31 December 2007. 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.

The following IFRS standards, amendments and interpretations are effective for
the company from 1 January 2008 and hence have not been adopted within these
financial statements. The adoptions of these standards, amendments and
interpretations is not expected to have a material impact on the company's
profit for the year or equity:

IAS1 Presentation of Financial Statements (revised September 2007)

IAS 14 Segment Reporting (revised January 2008)

IAS 23 Borrowing Costs (revised March 2007)

IAS 27 Consolidated and Separate Financial Statements (January 2008)

IFRS 2 Share Based Payment Vesting Conditions and Cancellations (revised January
2008)

IFRS 3 Business Combinations (revised January 2008)

IFRIC11 IFRS2 Group and Treasury Share Transactions

IFRIC 12 Service Concession Arrangements

IFRIC 13 Customer Loyalty Programmes

IFRIC 14 IAS 19 The limit on a defined benefit asset, minimum funding
requirements and their interaction

Reconciliations and descriptions of the effect of the transition from UKGAAP to
IFRS on the Group's equity and net income and cash flows are shown in Note 27.
The implementation of IFRS has had no material impact on the cash flow statement
of the 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 22.

2. Accounting policies

(a) 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
as earned

(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 plc, Sharegain Limited, JIM Nominees Limited, Galleon
Nominees Limited and Dudley Road Nominees Limited made up to 31 December 2007.

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, plus costs directly attributable to the acquisition.
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 profit and loss account
is presented for Jarvis Securities plc as provided by S230(3) of the Companies
Act 1985.

(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
Motor vehicles         - 15% on cost
Office equipment       - 20% on cost

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.

(d) Intangible assets

Intangible assets are capitalised at their fair value on acquisition and carried
at cost less accumulated amortisation. Amortisation is provided on cost in equal
annual instalments over the lives of the assets at the following rates:

Databases              - 4% on cost
Software developments  - 33% on cost
Website                - 33% on cost

(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.

(f) Deferred income tax

Deferred income tax is provided in full, using the liability method, on
temporary 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) Stockbroking balances

The gross assets and liabilities of the group relating to stockbroking
transactions on behalf of clients are included in trade receivables, trade
payables and cash and cash equivalents.

(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) Finance lease interest

The finance charge is allocated to each period during the lease term so as to
produce a constant periodic rate of interest on the remaining balance of the
liability.

(l) 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. An investment is classified in
this category if acquired principally with the intention of holding
indefinitely. 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.

(m) 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. 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. Hence such cash and cash
equivalents are not readily available of use by the company as they relate to
client transactions.

(n) Foreign Exchange

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

(o) 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.

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.
                                                           2007          2006
                                                      ---------     ---------
                                                              £             £
Interest received on stockbroking accounts net of
interest paid to clients                              1,895,453     1,508,974
Fees, commissions, foreign exchange gains and other
revenue                                               2,623,663     1,910,684
                                                      ---------     ---------
                                                      4,519,116     3,419,658
                                                      =========     =========
4. Segmental information

All of the reported revenue and operational results for the period derive from
the group's continuing financial services operations.

5. Finance costs                                             2007         2006
                                                        ---------    ---------
                                                                £            £
Interest on bank loans, overdrafts and income tax          26,946        2,605
Interest paid to clients on cash savings products          52,664      160,961
                                                        ---------    ---------
                                                           79,610      163,566
                                                        =========    =========

Interest paid on cash savings products 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. Profit before income tax                                 2007          2006
                                                       ---------     ---------
Profit before income tax is stated after charging:             £             £
Directors' emoluments                                    348,331       378,330
Depreciation - owned assets                               39,564        80,385
Amortisation                                              24,812        20,635
Operating lease rentals - hire of machinery                8,657         5,766
Operating lease rentals - land and buildings              35,750        26,371
Loss on disposal of fixed assets                               -           749
Finance costs                                             62,185       163,566
                                                       =========     =========

Directors' emoluments
Fees                                                     325,475       361,050
Pension contributions                                     11,964        10,764
Cost of share options                                     10,892         6,516
                                                       ---------     ---------
                                                         348,331       378,330
Details of the highest paid director are as follows:
Aggregate emoluments                                     181,001       141,001
Company contributions to personal pension scheme          11,964        10,764
Cost of share options                                      6,206         3,430
                                                       ---------     ---------
                                                         199,171       155,195

Benefits are accruing for one director (2006 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                                 23            22
                                                       =========     =========

The aggregate payroll costs of these persons were as           £             £
follows:
Wages and salaries                                       773,134       766,071
Pension contributions                                     11,964        10,764
Social security                                           85,473        86,787
Cost of share options                                     16,314         8,848
                                                       ---------     ---------
                                                         886,885       872,470
                                                       =========     =========

Key personnel

The directors are considered to be the key management personnel of the company.

7. Auditors' remuneration

During the year the company obtained the following services from the company's
auditors as detailed below:
                                                            2007          2006
                                                       ---------     ---------
                                                               £             £
Fees payable to the company's auditors for the audit of
the company's annual financial statements                  8,700         8,525
Fees payable to the company's auditors and its
associates for other services:
The audit of the company's subsidiaries, pursuant to
legislation                                                7,000         7,000
                                                       ---------     ---------
Total audit fees                                          15,700        15,525
Other services relating to taxation                        3,225         3,000
All other services                                        12,235        16,150
                                                       ---------     ---------
                                                          31,160        34,675
                                                       =========     =========

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

8. Income and deferred tax charges                          2007         2006
                                                       ---------    ---------
                                                               £            £
Based on the adjusted results for the year:
UK corporation tax                                       697,336      350,700
Adjustments in respect of prior years                       (395)         492
                                                       ---------    ---------
Total current income tax                                 696,941      351,192
Deferred income tax:
Origination and reversal of timing differences            (8,991)      13,130
Deferred tax on share options granted                    (54,240)           -
                                                       ---------    ---------
Income tax on profit                                     633,710      364,322
                                                       =========    =========

The income tax assessed for the year is lower than the standard rate of
corporation tax in the UK (30%). The differences are explained below:

Profit before income tax                               2,281,477    1,161,888
                                                       =========    =========
Profit before income tax multiplied by the standard
rate of corporation tax in the UK of 30% (2006 -
30%)                                                     684,443      348,566
Effects of:
Expenses not deductible for tax purposes                   9,593       (6,190)
Income not taxable for tax purposes                            -            -
Adjustments to tax charge in respect of previous
years                                                       (395)         492
Marginal relief                                           (1,594)           -
Cost of share options                                      4,894        2,654
                                                       ---------    ---------
Current income tax charge for the year                   696,941      351,192
                                                       =========    =========

Movement in provision:
Provision at start of year                                13,130            -
Deferred income tax charged in the income statement
for the year                                             (63,232)      13,130
Deferred income tax charged to equity for the year       (29,305)           -
                                                       ---------    ---------
Provision at end of year                                 (79,407)      13,130
                                                       =========    =========
Provision for deferred income tax:
Accelerated capital allowances                             4,138       13,130
Share options granted                                    (83,545)           -
                                                       ---------    ---------
                                                         (79,407)      13,130
                                                       =========    =========

9. Earnings per share
                                                            2007         2006
                                                       ---------    ---------
                                                               £            £
Earnings for the purposes of basic and diluted
earnings per share (profit (loss) for the period
attributable to the equity holders of the parent)      1,647,767      797,566
                                                       =========    =========

Date      Event                  Number        Days
--------  ---------------------  -----------   --------  ----------         ---------
Basic earnings per share:
1/1/06    Balance at 1/1/06       11,484,545         8                        251,716
9/1/06    Cancellation of         11,460,000       173                      5,431,726
          treasury shares
18/9/06   Cancellation of         11,400,000       160                      4,997,260
          treasury shares
7/12/06   Cancellation of         11,350,000        24                        746,301
          treasury shares
1/1/07    Balance at 1/1/07       11,350,000         7      217,671
8/1/07    Cancellation of         11,280,000        73    2,256,000
          treasury shares
21/3/07   Cancellation of         11,200,000        37    1,135,342
          treasury shares
27/4/07   Cancellation of         11,000,000       124    3,736,986
          treasury shares
29/8/07   Cancellation of         10,900,000       123    3,673,150
          treasury shares
31/12/07  Cancellation of         10,800,000         1       29,589
          treasury shares                                ----------        ----------
                                                         11,048,738        11,427,003
                                                         ==========        ==========
Diluted earnings per share:
1/1/06    Balance at 1/1/06       12,134,545         8                        265,962
9/1/06    Cancellation of         12,110,000       173                      5,739,808
          treasury shares
18/9/06   Cancellation of         12,050,000       160                      5,282,192
          treasury shares
7/12/06   Cancellation of         12,000,000        24                        789,041
          treasury shares
1/1/07    Balance at 1/1/07       12,000,000         7      230,137
8/1/07    Cancellation of         11,930,000        73    2,386,000
          treasury shares
21/3/07   Cancellation of         11,850,000        37    1,201,233
          treasury shares
27/4/07   Cancellation of         11,650,000       124    3,957,808
          treasury shares
18/5/07   Grant of options        11,880,000        21      683,507
29/8/07   Cancellation of         11,780,000       102    3,291,945
          treasury shares
31/12/07  Cancellation of         11,680,000         1       32,000
          treasury shares                                ----------        ----------
                                                         11,782,630        12,077,003
                                                         ==========        ==========

10. Property, plant and equipment

                        ---------      --------       --------      ---------
                        Leasehold         Motor         Office          Total
                     Improvements       Vehicle      Equipment
                        ---------      --------       --------      ---------
                                £             £              £              £
Cost:
At 1 January 2007          49,203        24,160        202,484        275,847
Additions                   7,009         2,897         11,830         21,736
Disposals                       -             -              -              -
                        ---------      --------       --------      ---------
At 31 December 2007        56,212        27,057        214,314        297,583
                        ---------      --------       --------      ---------
Depreciation:
At 1 January 2007          31,050         3,926        135,696        170,672
Charge for the year        10,141         3,986         25,437         39,564
On Disposal                     -             -              -              -
                        ---------      --------       --------      ---------
At 31 December 2007        41,191         7,912        161,133        210,236
                        ---------      --------       --------      ---------
Net Book Value:
At 31 December 2007        15,021        19,145         53,181         87,347
                        =========      ========       ========      =========

At 31 December 2006        18,153        20,234         66,788        105,175
                        =========      ========       ========      =========

11. Intangible assets and goodwill

                      ---------   ---------    ---------   -------   ---------
                       Goodwill   Databases     Software   Website     Total
                                             Development
                      ---------   ---------    ---------   -------   ---------
                              £           £            £         £           £
Cost:
At 1 January 2007       342,872      25,000       91,017    70,185     529,074
Additions                     -           -        2,504         -       2,504
Disposals                     -           -            -         -           -
                      ---------   ---------    ---------   -------   ---------
At 31 December 2007     342,872      25,000       93,521    70,185     531,578
                      ---------   ---------    ---------   -------   ---------
Amortisation:
At 1 January 2007             -       3,177       76,577    45,655     125,409
Charge for the year           -       1,250       12,802    10,760      24,812
On Disposal                   -           -            -         -           -
                      ---------   ---------    ---------   -------   ---------
At 31 December 2007           -       4,427       89,379    56,415     150,221
                      ---------   ---------    ---------   -------   ---------
Net Book Value:
At 31 December 2007     342,872      20,573        4,142    13,770     381,357
                      =========   =========    =========   =======   =========

At 31 December 2006     342,872      21,823       14,440    24,530     403,665
                      =========   =========    =========   =======   =========

12. Investments held to maturity

                                    Group                         Company
                             2007            2006          2007          2006
                        ---------      ----------     ---------     ---------
Unlisted Investments:           £               £             £             £
Cost:
At 1 January 2007               -               -       100,300       100,300
Additions                  20,000               -        20,000             -
Disposals                       -               -             -             -
                        ---------      ----------     ---------     ---------
As at 31 December 2007     20,000               -       120,300       100,300
                        =========      ==========     =========     =========

Unlisted investments are interests held in the following companies registered in
the United Kingdom:

                                          Shareholding         Holding             Business
                                        --------------        ---------           ----------
Jarvis Investment Management plc      100%   10,030,000   1p Ordinary shares  Financial Administration
Alexander David Holdings Limited      1.3%          200   1p Ordinary shares  Stockbrokers

13. Trade and other receivables        Group                       Company

Amounts falling due within
one year:                        2007         2006          2007          2006
                            ---------   ----------     ---------     ---------
                                    £            £             £             £

Trade receivables           6,988,801    4,355,025        56,750        36,263
Amounts owed by group
undertakings                   53,897      254,496        21,000       254,496
Other receivables             172,182      163,519       135,089       143,134
Income tax                          -            -             -        21,000
Prepayments and accrued
income                      1,078,338      937,419       215,931        17,478
                            ---------   ----------     ---------     ---------
                            8,293,218    5,710,459       428,770       472,371
                            =========   ==========     =========     =========


Trade receivables include £6,914,936 (2006 £4,313,978) in respect of delivery
versus payment transactions for the settlement of client bargains.

Amounts owed by group undertakings for the Group includes £53,897 for group tax
relief due from Sion Holdings Limited and £21,000 for the Company relating to a
payment for group tax relief due from Jarvis Investment Management plc. Other
receivables include £ nil (2006 £181) due from Mr A J Grant, a director of the
company.

14. Investments held for trading

                                            Group                        Company
                                     2007           2006          2007          2006
                                ---------     ----------     ---------     ---------
Listed Investments:
Valuation:
At 1 January 2007                  34,186         33,177             -             -
Additions                         534,880        716,903             -             -
Disposals                        (547,467)      (715,894)            -             -
                                ---------     ----------     ---------     ---------
As at 31 December 2007             21,599         34,186             -             -
                                =========     ==========     =========     =========

Listed investments are stated at their market value at 31 December 2007.


15. Cash and cash equivalents

                                           Group                      Company
                                     2007        2006          2007          2006
                                ---------  ----------     ---------     ---------
                                        £           £             £             £
Balance at bank and in hand
- company                         880,591     471,499         4,115         2,905

Balance at bank and in hand
- client balances               8,081,596   6,089,765             -             -
                                ---------  ----------     ---------     ---------
                                8,962,187   6,561,264         4,115         2,905
                                =========  ==========     =========     =========

Cash at bank includes £8,081,596 (2006 £6,089,765) 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.


16. Share capital
                                                               2007       2006
                                                          ---------  ---------
                                                                  £          £
Authorised:
16,000,000 Ordinary shares of 1p each                       160,000    160,000
                                                          =========  =========
Allotted, issued and fully paid:
10,800,000 (2006: 11,350,000) Ordinary shares of 1p each    108,000    113,500
                                                          =========  =========

During the year the company repurchased 480,000 of its own ordinary 1p shares
for cancellation and also cancelled 70,000 shares purchased in the previous
year. A further 1,000 shares purchased were held in Treasury at the year end.

A total of 600,000 options were granted to directors and employees on admission
of the company to trading on AIM on 23 December 2004 and a further 50,000 to a
director on 20 January 2006. These options were granted with an exercise price
of 82.5p and are first exercisable on 23 December 2009 and with a last exercise
date of 23 December 2014. In addition, 230,000 options were granted on 18 May
2007 to directors and employees with an exercise price of 175p and are first
exercisable on 17 May 2012 and with a last exercise date of 17 May 2017.

The following options were granted to directors:

                                           at 82.5p                    at 175p
                                          ---------                  ---------
A J Grant                                   273,500                     76,500
M J Edmett                                  175,000                     50,000
J S Mackay                                   50,000                          -

17. Capital and reserves - Group

                         Share      Share      Capital     Other     Retained     Own shares    Total equity
                       capital    premium   redemption  reserves     earnings           held     
                                               reserve                           in treasury
                       -------    -------     --------   -------     --------       --------        --------
                             £          £            £         £            £              £               £

At 1 January 2006      114,845    789,834            -     8,848      472,412        (18,879)      1,367,060
Profit for the               
financial year               -          -            -         -      797,566              -         797,566
Expense of employee
options                      -          -            -     8,848            -              -           8,848
Dividends                    -          -            -         -     (458,768)             -        (458,768)
Purchase of own shares       -          -            -         -            -       (333,228)       (333,228)
Cancellation of own     
shares                  (1,345)         -        1,345         -     (122,324)       122,324               -
Sale of shares from 
treasury                     -          -            -         -            -        159,990         159,990
                       -------    -------     --------   -------     --------       --------        --------
At 31 December 2006    113,500    789,834        1,345    17,696      688,886        (69,793)      1,541,468
                       =======    =======     ========   =======     ========       ========        ========

Profit for the 
financial year               -          -            -         -    1,647,767              -       1,647,767
Expense of employee
options                      -          -            -    16,314            -              -          16,314
Deferred tax charged 
to equity                    -          -            -         -       29,305              -          29,305
Dividends                    -          -            -         -     (730,000)             -        (730,000)
Purchase of own shares       -          -            -         -            -     (1,125,013)     (1,125,013)
Cancellation of own     
shares                  (5,500)         -        5,500         -     (940,629)       940,629               -
Sale of shares               
from treasury                -          -            -         -            -        252,247         252,247
                       -------    -------     --------   -------     --------       --------        --------
At 31 December 2007    108,000    789,834        6,845    34,010      695,239         (1,930)      1,632,088
                       =======    =======     ========   =======     ========       ========        ========

Capital and reserves - company

                         Share      Share      Capital     Other     Retained     Own shares    Total equity
                       capital    premium   redemption  reserves     earnings           held     
                                               reserve                           in treasury
                       -------    -------     --------   -------     --------       --------        --------
                             £          £            £         £            £              £               £

At 1 January 2006      114,845    779,934            -     8,848        6,446        (18,879)        891,194
Profit for the               
financial year               -          -            -         -      731,340              -         731,340
Expense of employee
options                      -          -            -     8,848            -              -           8,848
Dividends                    -          -            -         -     (458,768)             -        (458,768)
Purchase of own shares       -          -            -         -            -       (333,228)       (333,228)
Cancellation of own     
shares                  (1,345)         -        1,345         -     (122,324)       122,324               -
Sale of shares               
from treasury                -          -            -         -            -        159,990         159,990
                       -------    -------     --------   -------     --------       --------        --------
At 31 December 2006    113,500    779,934        1,345    17,696      156,694        (69,793)        999,376
                       =======    =======     ========   =======     ========       ========        ========
Profit for the               
financial year               -          -            -         -    1,580,098              -       1,580,098
Expense of employee
options                      -          -            -    16,314            -              -          16,314
Deferred tax charged to
equity                       -          -            -         -       29,305              -          29,305
Dividends                    -          -            -         -     (730,000)             -        (730,000)
Purchase of own shares       -          -            -         -            -     (1,125,013)     (1,125,013)
Cancellation of own     
shares                  (5,500)         -        5,500         -     (940,629)       940,629               -
Sale of shares               
from treasury                -          -            -         -            -        252,247         252,247
                       -------    -------     --------   -------     --------       --------        --------
At 31 December 2007    108,000    779,934        6,845    34,010       95,468         (1,930)      1,022,327
                       =======    =======     ========   =======     ========       ========        ========

Other reserves relates to the provision for the estimated cost of employee share
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.

18. Trade and other payables

                                       Group                      Company
Amounts falling due
within                          2007          2006          2007          2006
one year:                  ---------    ----------     ---------     ---------
                                   £             £             £             £

Trade payables            15,449,512    10,646,884        57,196        18,323
Amounts owed to group              
companies                          -             -             -             -
Other taxes and social
security                      78,512        56,295             -             -
Other payables and
provisions                    28,044        64,860             -        35,562
Accruals                      53,867       141,412        18,700        18,025
                           ---------    ----------     ---------     ---------
Trade and other payables  15,609,935    10,909,451        75,896        71,910
Income tax                   603,092       350,700         3,073
                           ---------    ----------     ---------     ---------
Total liabilities         16,213,027    11,260,151        78,969        71,910
                           =========    ==========     =========     =========


Trade payables include £14,996,532 (2006 £10,403,742) in respect of delivery
versus payment transactions for the settlement of client bargains.


19. Dividends
                                                            2007          2006
                                                       ---------     ---------
                                                               £             £

Interim dividends paid on Ordinary 1p shares             448,000       458,768
Final dividends paid on Ordinary 1p shares               282,000             -
                                                       ---------     ---------
                                                         730,000       458,768
                                                       =========     =========

Dividend per Ordinary 1p share                               6.5p          4.0p
                                                       =========     =========


20. Operating lease commitments

At 31 December 2007 the group was committed to making the following payments
during the next year in respect of operating leases which expire:

                                                   Equipment            Land &
                                                   ---------         buildings
                                                                     ---------
                                                           £                 £

After more than five years:                           10,566            63,500
                                                   =========         =========


On 26 September 2007 the company entered into a lease with Sion Holdings
Limited, its parent company, for the rental of Tudor House, a self-contained
office building. The company also surrendered its existing lease with Sion
Holdings Limited without penalty to enable it to relocate to Tudor House in
early 2008 following refitting of the premises. The additional floor space is
required by the company to support its planned expansion. 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.

In addition, on 24 October 2007, Jarvis Investment Management plc entered into a
lease agreement with Neopost Finance for the rental of various items of post
management equipment. The equipment is required to support the increasing volume
of post received and sent by the group as a result of the growth of the
business. The lease has a term of 6 years.

21. 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 only financial asset of the group is cash and cash equivalents which is
denominated in sterling and which is detailed in note 15. The group operates a
low risk investment policy and surplus funds are placed on deposit with at least
A rated banks at floating interest rates.

Short-term receivables and payables are excluded from these disclosures.

22. 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 and the expense of
employee options.

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. 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.

23. Immediate and ultimate parent undertaking

The company's immediate and ultimate parent undertaking is Sion Holdings
Limited, a company registered in England and Wales. The largest set of accounts
that Jarvis Securities plc is consolidated into is that of Sion Holdings
Limited. Sion Holdings Limited is controlled by Mr A J Grant by virtue of his
majority shareholding.

24. Related party transactions

At the year end Sion Holdings Limited had an outstanding inter-company loan
balance due to Jarvis Securities plc of £nil (2006 £254,496). Sion Holdings
Limited owed Jarvis Securities plc £5,000 at the year end for invoiced services.

On 26 September 2007 the company entered into a lease with Sion Holdings
Limited, its parent company, for the rental of Tudor House, 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. During the year
the company made a management charge of £10,000 to Sion Holdings Ltd for office
and administrative services and paid Sion Holdings Limited rent of £19,875 for
Oxford House, £63,500 being a year's rent in advance for Tudor House and £15,875
rent deposit under the terms of the lease of Tudor House.

Further the company paid Sion Holdings Limited a premium of £175,000 on the
assignment of the new lease of Tudor House. The premium related to the VAT
position of the lease. As a financial services business, the group cannot
reclaim VAT in full. Sion Holdings Limited opted not to tax on the lease in
order to save the group the costs of the irrecoverable VAT and in return the
company compensated Sion Holdings Limited for the effect of this decision over
the lease term.

In addition, Sion Holdings Limited owed Jarvis Investment Management plc £53,897
at the year end for group relief on income tax resulting from the tax
calculations made for the Group and Sion Holdings Limited, the ultimate parent
undertaking, for the year ended 31 December 2007.

25. Event after the balance sheet date

The Board proposes the payment of a final dividend of 6.0p per Ordinary 1p share
to holders on the register on 1 February 2008 for payment on the 7 March 2008
subject to approval at the annual general meeting of the company.

26. Capital commitments

The company was committed to making payments totalling £36,700 (2006 £ nil)
after the year end for services contracted for at the 31 December 2007. These
commitments related to refit costs for the Group's new offices.

27. Reconciliation of amounts reported under previous UK GAAP to IFRS

The Group adopted IFRS on 1 January 2007. A reconciliation of equity and profit
reported under previous UK GAAP to that stated in the financial statements under
IFRS is given below in accordance with the requirements of IFRS 1.
                                                                          2006
                                                                     ---------
                                                                             £
Total equity reported under UK GAAP                                  1,520,833
IFRS adjustment - amortisation of goodwill                              19,385
IFRS adjustment - amortisation of intangible assets                      1,250
                                                                     ---------
Total equity reported under IFRS                                     1,541,468
                                                                     =========

Total profit reported under UK GAAP                                    776,931
IFRS adjustment - amortisation of goodwill                              19,385
IFRS adjustment - amortisation of intangible assets                      1,250
                                                                     ---------
Total profit reported under IFRS                                       797,566
                                                                     =========

Business and operating review

Strong growth has resulted in the group's revenue rising by 32.2% to £4,519,116.
Profit before income tax has also grown to 196.4% of the 31 December 2006 level,
with basic earnings per share up by 113.6%. Group total equity is at £1,632,088
from £1,541,468 a year earlier, a rise of 5.9%.

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 PLUS markets 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 again expanded
significantly in both these areas during the year under review and expects to
continue doing so in 2008. 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 than other pure execution-only brokers.

Capitalisation and financing

Jarvis Securities plc has 10,800,000 Ordinary 1p shares in issue. 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 five 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 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:

   • Comic Relief
   • British Heart Foundation
   • RSPCA

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 profit before income tax as a percentage of revenue. 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 23.0% (source: ComPeer Q3 2007
Peer Group Report). The Board aims to have significantly higher than average
margins and to keep these above 20%.

2007: 50.49%
2006: 33.97%

ROCE

The return on capital employed is the profit before income tax 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 11.06%.

2007: 139.8%
2006: 75.4%

Revenue per employee

This is revenue 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.

2007: 196,483
2006: 155,439

Revenue increase rate: 26.4% vs. payroll cost increase: 1.65%

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.

Total funds under administration at the year end:
2007: £432M
2006: £309M

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 revenue
growth for the Group into the future.

Rate of Increase (Number):  28.0%
Rate of Increase (Revenue): 3.27%

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
5.60 (source: ComPeer annual peer group benchmarking report 2006). Jarvis again
had one of the best ratios in the execution-only industry in the last ComPeer
annual benchmarking report and we are very proud of this achievement.

2007: 0.50
2006: 0.51

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 2007: 89.4%
% of calls answered in three rings in 2006: 88.5%
Total phone calls taken 2007:               129,235
Total phone calls taken 2006:               121,469
Increase in call volumes:                   6.39%

These results were adversely affected due to unexpectedly busy periods in the
year. Performance has improved over 2006.

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.

2007: 1.49%
2006: 1.85%

These results are improved over the prior year but remain behind target.

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.

2007 EPS:       14.91p
2006 EPS:       6.98p
Rate of change: 114%

2007 P/E ratio: 10.8
2006 P/E ratio: 14.0


                    INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF
                                 JARVIS SECURITIES PLC

We have audited the group and parent company financial statements of Jarvis
Securities plc (the 'financial statements') which comprise the consolidated
income statement, consolidated balance sheet, company balance sheet,
consolidated statement of recognised income and expense, consolidated statement
of changes in equity, consolidated cashflow statement, company cashflow
statement and related notes 1 to 27 of Jarvis Securities plc for the year ended
31 December 2007. These financial statements have been prepared under the
accounting policies set out therein.

This report is made solely to the company's shareholders, as a body, in
accordance with Section 235 of the Companies Act 1985. Our audit work has been
undertaken so that we might state to the company's shareholders those matters we
are required to state to them in an auditors' report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company and the company's shareholders
as a body, for our audit work, for this report, or for the opinions we have
formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

The directors' responsibilities for preparing the Annual Report and the
financial statements in accordance with applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union are set
out in the Statement of Directors' Responsibilities.

Our responsibility is to audit the financial statements in accordance with
relevant legal and regulatory requirements and International Standards on
Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true
and fair view and are properly prepared in accordance with the Companies Act
1985. We also report to you whether, in our opinion, the information given in
the Directors' Report is consistent with the financial statements. In addition
we report to you if, in our opinion, the company and group have not kept proper
accounting records, if we have not received all the information and explanations
we require for our audit, or if information specified by law regarding
directors' remuneration and transactions with the company is not disclosed.

We read the other information contained in the Annual Report, and consider
whether it is consistent with the audited financial statements. This other
information comprises only the Directors' Report, the Financial Highlights and
the Chairman's Statement. We consider the implications for our report if we
become aware of any apparent misstatements or material inconsistencies with the
financial statements. Our responsibilities do not extend to any other
information.

BASIS OF AUDIT OPINION

We conducted our audit in accordance with International Standards on Auditing
(UK and Ireland) issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant to the amounts and
disclosures in the financial statements. It also includes an assessment of the
significant estimates and judgements made by the directors in the preparation of
the financial statements, and of whether the accounting policies are appropriate
to the group's and company's circumstances, consistently applied and adequately
disclosed.

We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.

UNQUALIFIED OPINION

In our opinion:

  • the group financial statements give a true and fair view, in accordance
    with IFRSs as adopted by the European Union, of the state of the group's
    affairs as at 31 December 2007 and of its profit for the year then ended;
  • the parent company financial statements give a true and fair view, in
    accordance with IFRSs as adopted by the European Union, as applied in
    accordance with the Companies Act 1985, of the state of the parent company's
    affairs as at 31 December 2007; and
  • the information provided in the Directors' Report is consistent with the
    financial statements.

HORWATH CLARK WHITEHILL LLP
Chartered Accountants and Registered Auditors
Maidstone

Contacts:

Jarvis Securities plc
Andrew Grant or Mathew Edmett      0870 224 1111

Daniel Stewart & Company plc
Lindsay Mair or Stewart Dick       020 7776 6550







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