 rose on Thursday morning, after the company's chairman made a positive forward-looking statement.){kind=link}
Shares in Jarvis Securities (LON:JIM) rose on Thursday morning, after the company’s chairman made a positive forward-looking statement alongside a rise in both profits and revenue.
The security business posted pre-tax profits of £3.6 million for the year to the end of December, a 7 percent increase on the previous period. Revenues rose to £8.3 million from £7.6m in 2015.
In a statement, chairman Andrew Grant said last year’s “short-term pessimism” over the state of the company was “overdone”, adding:
“During 2016 we saw a dramatic improvement in market conditions compared to what we experienced in the latter half of 2015. The catalyst for this was the Brexit result. Investors were cautious prior to the vote with many fearing a vote to leave the EU could result in a significant fall in equity prices. Once any decline failed to materialise trade volumes increased throughout the remainder of 2016, and are being sustained at those levels at the time of writing.”
Earnings per share rose to 26.45 pence, up from 24.46 pence. The financial results come just days after the company declared a dividend last Monday, with Stockholders of record being given a dividend of £4.25 ($0.05) per share on Thursday, March 9th. This represents a dividend yield of 1.11 percent.
Chairman Andrew Grant concluded:
“Looking forward into 2017 and beyond I am confident we will continue to grow the business and further improve our financial results. Market conditions are currently excellent for our own retail client activity, we have a strong pipeline of new Custodian and Model B business, and cash under administration is at record levels. Even modest increases in interest rates which now seem as though they may materialise in the shorter term will significantly increase profitability.”
Shares in Jarvis Securities are currently trading up 3.89 percent at 420.50 (0847GMT).