TIDMJIM
RNS Number : 1829E
Jarvis Securities plc
10 March 2022
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF
THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
10 March 2022
Jarvis Securities plc
("Jarvis" or "the Company" or "the Group")
RESULTS FOR THE YEARED 31 DECEMBER 2021
HIGHLIGHTS
-- 12% increase in profit before tax
-- 22% growth in interim dividend per share (excludes 2021 special dividend)
-- 9% increase in EPS
CHAIRMAN'S STATEMENT
It pleases me greatly that for the 3(rd) year running I am
commenting on another record-breaking set of results. Our 2020
figures may have been viewed as a pandemic related "one off" but
improving on those in 2021 indicates that given favourable market
conditions they can be bettered. Given current global events this
may prove a challenge in the short term, but the fundamental
outlook for the business remains positive.
2021 was very much a year of two halves, with trade volumes high
in the first five months but then tailed off in the second half as
markets generally became quieter. Overall, the general trend for
our settlement and transaction volume continues upwards. Market
sentiment can however in the short term overshadow the long-term
growth being achieved and future outlook for the business. The cash
balances held under administration have continued to grow, but in
2021 we saw the average interest rate achieved on deposits continue
to fall. We are now seeing an upward turn and rates earned on new
funds are back up to a level not seen for over two years and
further increases seem very likely. Looking to 2022 and beyond, my
view is that monetary policy is entering a new phase and one which
Jarvis is well positioned to benefit from. Much of the cash we
administer is maturing in the short term and will be available to
capture increases in rates as they materialise. Added to this
interest income has minimal associated marginal costs.
Against this positive outlook we are experiencing cost increases
from many of our suppliers. Some of these have been passed onto our
commercial customers, however we would prefer to offset these cost
increases through continued growth in order to maintain our
competitive pricing model.
We intend to continue growing the business organically and
return profits to shareholders where regulatory capital and
cashflow permit. We were able to pay a special dividend to
shareholders in 2021 through the cancellation of the share premium
reserve. This was not an expensive exercise though it did require
High Court approval so some legal costs were incurred but it
allowed us to pay out reserves that had built up in the business.
Much of the cash for this transaction was generated from the
profitable sale of treasury shares purchased. The Board retains the
authority to purchase shares to be held in treasury and may
repurchase shares if considered to be in stakeholders'
interests.
We have a diversified revenue stream which allows the business
to perform in changing market conditions so I continue to be
optimistic that the business will continue to thrive.
As always, I would like to thank the staff at Jarvis for their
continued hard work.
Andrew Grant
Chairman
Annual General Meeting
The Company will today dispatch 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(st) April at 9am. The
Annual Report and Accounts and Notice of AGM will also be available
from
the Company's website, www.jarvissecurities.co.uk .
Enquiries :
Jarvis Securities plc
Tel: 01892 510515
Andrew Grant
Jolyon Head
WH Ireland Limited
Tel: 0113 394 6618
Katy Mitchell
Darshan Patel
Consolidated income statement for the year ended 31 december
2021
Year to Year to
31/12/21 31/12/20
Notes
GBP GBP
Continuing operations:
Revenue 3 14,297,263 13,341,136
Administrative expenses (6,632,746) (6,465,029)
Lease finance costs (3,520) (5,993)
Profit before income tax 5 7,660,997 6,870,114
Income tax charge 7 (1,480,146) (1,310,424)
Profit for the period 6,180,851 5,559,691
Attributable to equity holders
of the parent 6,180,851 5,559,691
Earnings per share 8 P P
Basic and diluted 13.91 12.72
Consolidated statement of comprehensive income for the year
Notes Year to Year to
31/12/21 31/12/20
GBP GBP
Profit for the period 6,180,851 5,559,691
------------------------------------------------ ---------- ----------
Total comprehensive income for the period 6,180,851 5,559,691
============================================== ========== ==========
Attributable to equity holders
of the parent 6,180,851 5,559,691
================================================ ========== ==========
C ompany No.: 5107012
Consolidated STATEMENT OF FINANCIAL POSITION at 31 december
2021
31/12/21 31/12/20
Notes
GBP GBP
Assets
Non-current assets
Property, plant and equipment 9 295,767 379,814
Intangible assets 10 93,606 102,019
Goodwill 10 342,872 342,872
732,245 824,705
Current assets
Trade and other receivables 12 6,361,707 6,923,154
Investments held for trading 14 1,958 4,183
Cash and cash equivalents 15 3,780,594 3,794,980
----------------------------------- ------ --- --- ----------- -----------
10,144,259 10,722,317
Total assets 10,876,504 11,547,022
=================================== ====== === === =========== ===========
Equity and liabilities
Capital and reserves
Share capital 16 111,828 111,828
Share premium - 1,655,640
Merger reserve 9,900 9,900
Capital redemption reserve 9,845 9,845
Retained earnings 5,014,456 5,672,848
Own shares held in treasury 16 - (886,113)
Total equity attributable to
the equity holders of the parent 5,146,029 6,573,948
Non-current liabilities
Deferred tax 7 61,928 45,617
Lease liabilities 13 - 64,653
61,928 110,270
Current liabilities
Trade and other payables 17 4,900,444 4,176,030
Lease liabilities 13 64,653 83,980
Income tax 17 703,450 602,794
----------------------------------- ------ --- --- ----------- -----------
5,668,547 4,862,804
Total liabilities 5,730,475 4,973,074
Total equity and liabilities 10,876,504 11,547,022
=================================== ====== === === =========== ===========
C ompany No.: 5107012
CoMPANY STATEMENT OF FINANCIAL POSITION at 31 december 2021
31/12/21 31/12/20
Notes
GBP GBP
Assets
Non-current assets
Property, plant and equipment 9 295,767 379,814
Intangible assets 10 93,606 102,019
Goodwill 10 342,872 342,872
Investment in subsidiaries 11 284,239 284,239
1,016,484 1,108,944
Current assets
Trade and other receivables 12 138,958 388,288
Cash and cash equivalents 15 2,329,510 2,222,469
------------------------------- ------ --- --- ---------- -----------
2,468,468 2,610,757
Total assets 3,484,952 3,719,701
=============================== ====== === === ========== ===========
Equity and liabilities
Capital and reserves
Share capital 16 111,828 111,828
Share premium - 1,655,640
Capital redemption reserve 9,845 9,845
Retained earnings 400,083 1,481,763
Own shares held in treasury 16 - (886,113)
Total equity attributable to
the equity holders 521,756 2,372,963
Non-current liabilities
Deferred tax 7 62,847 46,253
Lease liabilities 13 - 64,653
62,847 110,906
Current liabilities
Trade and other payables 17 2,427,462 801,020
Lease liabilities 13 64,653 83,980
Income tax 17 408,234 350,832
------------------------------- ------ --- --- ---------- -----------
2,900,349 1,235,832
Total liabilities 2,963,196 1,346,738
Total equity and liabilities 3,484,952 3,719,701
=============================== ====== === === ========== ===========
The parent company's profit for the financial year was
GBP5,757,563 (2020: GBP4,541,208).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Own
Capital shares
Share Share Merger redemption Retained held in Total
capital premium reserve reserve earnings Treasury equity
-------------------------------------- --------- ------------ --------- ----------- ------------ ---------- ------------
GBP GBP GBP GBP GBP GBP GBP
At 1 January 2020 111,828 1,576,669 9,900 9,845 4,949,467 (981,136) 5,676,573
- - - - 5,559,691 - 5,559,691
Profit for the financial year
Sale of own shares held in treasury - 78,971 - - - 95,023 173,994
Dividends - - - - (4,836,310) - (4,836,310)
At 31 December 2020 111,828 1,655,640 9,900 9,845 5,672,848 (886,113) 6,573,948
-------------------------------------- --------- ------------ --------- ----------- ------------ ---------- ------------
Profit for the financial year - - - - 6,180,851 - 6,180,851
Sale of own shares held in treasury - 1,412,372 - - (95,834) 886,113 2,202,651
Cancellation of share premium - (3,068,012) - - 3,068,012 - -
Dividends - - - - (9,811,421) - (9,811,421)
At 31 December 2021 111,828 - 9,900 9,845 5,014,456 - 5,146,029
-------------------------------------- --------- ------------ --------- ----------- ------------ ---------- ------------
COMPANY STATEMENT OF CHANGES IN EQUITY
Capital Own shares
Share Share redemption Retained held in Total
capital premium reserve earnings treasury equity
-------------------------- ---------- ------------ ------------ ------------- ----------- -------------
GBP GBP GBP GBP GBP GBP
At 1 January 2020 111,828 1,576,669 9,845 1,776,865 (981,136) 2,494,071
Profit for the financial
year - - - 4,541,208 - 4,541,208
Sale of own shares
held in treasury
Dividends - 78,971 - - 95,023 173,994
- - - (4,836,310) - (4,836,310)
At 31 December 2020 111,828 1,655,640 9,845 1,481,763 (886,113) 2,372,963
-------------------------- ---------- ------------ ------------ ------------- ----------- ---------------
Profit for the financial
year - - - 5,757,563 - 5,757,563
Sale of own shares
held in treasury - 1,412,372 - (95,834) 886,113 2,202,651
Cancellation of share
premium - (3,068,012) - 3,068,012 - -
Dividends - - - (9,811,421) - (9,811,421)
At 31 December 2021 111,828 - 9,845 400,083 - 521,756
-------------------------- ---------- ------------ ------------ ------------- ----------- ---------------
statement OF cashflows
for the year ended 31 december 2021
CONSOLIDATED COMPANY
Year to Year to Year to Year to
31/12/21 31/12/20 31/12/21 31/12/20
Notes
------ ------------- ------------- ------------- -------------
GBP GBP GBP GBP
Cash flow from operating activities
Profit before income tax 7,660,997 6,870,114 6,364,617 5,250,277
Depreciation and amortisation 5 127,433 142,908 127,433 142,908
Lease finance cost 3,520 5,993 3,520 5,993
7,791,950 7,019,015 6,495,570 5,399,178
(Increase) /Decrease in trade and other receivables 566,607 (3,465,602) 249,330 248,051
(Decrease) /Increase in trade payables 719,254 907,847 1,626,443 (90,415)
Cash generated from operations 9,077,811 4,461,260 8,371,343 5,556,814
Income tax (paid)/received (1,363,179) (1,150,000) (533,059) (708,090)
Net cash from operating activities 7,714,632 3,311,260 7,838,284 4,848,724
Cash flows from investing activities
Purchase of property, plant and equipment (11,296) (11,837) (11,296) (11,837)
Purchase of investments held for trading (1,272,780) (1,060,177) - -
Proceeds from sale of investments held for trading
Purchase of intangible assets 1,275,005 1,060,594 - -
(23,677) (46,005) (23,677) (46,005)
Cash flows from financing activities (32,748) (57,425) (34,973) (57,842)
Sale of treasury shares 2,202,651 173,994 2,202,651 173,994
Dividends paid (9,811,421) (4,836,310) (9,811,421) (4,836,310)
Lease finance cost (3,520) (5,993) (3,520) (5,993)
Repayment of lease liability (83,980) (81,507) (83,980) (81,507)
----------------------------------------------------- ------ ------------- ------------- ------------- -------------
Net cash used in financing activities (7,696,270) (4,749,816) (7,696,270) (4,749,816)
Net (decrease)/ increase in cash & cash equivalents (14,386) (1,495,981) 107,041 41,066
Cash and cash equivalents at the start of the year 3,794,980 5,290,961 2,222,469 2,181,403
------------------------------------------------------------- ------------- ------------- ------------- -------------
Cash and cash equivalents at the end of the year 3,780,594 3,794,980 2,329,510 2,222,469
------------------------------------------------------------- ------------- ------------- ------------- -------------
Cash and cash equivalents:
Balance at bank and in hand 4,864,077 6,320,942 2,329,510 2,222,469
Cash held for settlement of market transactions (1,083,483) (2,525,962) - -
3,780,594 3,794,980 2,329,510 2,222,469
------------------------------------------------------------- ------------- ------------- ------------- -------------
1. Basis of preparation
The company has adopted the requirements of international
accounting standards as adopted by the United Kingdom 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
financial assets 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.
New standards, not yet effective
There are no standards that are issued but not yet effective
that would be expected to have a material impact on the entity in
the current or future reporting periods and on foreseeable future
transactions.
Significant judgements and estimates
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 20.
Going concern
The group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Strategic Report on pages 2 to 5. The financial
position of the group, its cash flows, liquidity position and
borrowing facilities are described within these financial
statements. In addition, note 25 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, long term
contracts with all its significant suppliers and 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.
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. Accounting policies
(a) IFRS 15 'Revenue from Contracts with Customers'
Commission - the group charges 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 on a point in time basis when the instruction is executed in
the market. 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. Management fees
income is recognised over time as 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 FCA requirements,
deposits are only placed with banks that have been approved by our
compliance department. Interest income is recognised over time as
the deposits accrue interest on a daily basis.
(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 2021.
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 non-controlling 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 S408 of the Companies Act 2006.
(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 3 years
Office equipment - 20% on cost
Land & Buildings - Buildings are depreciated at 2% on cost.
Land is not depreciated.
Right of use asset - Straight line basis over the lease
period
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at each year end 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 - 20% 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) Investments
Investments held for trading
Under IFRS investments held for trading are recognised as
financial assets measured at fair value through profit and
loss.
Investments in subsidiaries
Investments in subsidiaries are stated at cost less provision
for any impairment in value.
(j) 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.
(k) Cash and cash equivalents
Cash and cash equivalents comprise:
Balance at bank and in hand - cash in 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.
Cash held for settlement of market transactions - this balance
is cash generated through settlement activity, and can either be a
surplus or a deficit. A surplus arises when settlement liabilities
exceed settlement receivables. This surplus is temporary and is
accounted for separately from the balance at bank and in hand as it
is short term and will be required to meet settlement liabilities
as they fall due. A deficit arises when settlement receivables
exceed settlement liabilities. In this instance Jarvis will place
its own funds in the client account to ensure CASS obligations are
met. This deficit is also temporary and will reverse once
settlement receivables are settled.
(l) 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 year end
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.
(m) 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.
(n) IFRS 9 'Financial Instruments'
The group currently calculates a "bad debt" provision on
customer balances based on 25% of overdrawn client accounts which
are one month past due date and are not specifically provided for.
Under IFRS 9 this assessment is required to be calculated based on
a forward - looking expected credit loss ('ECL') model, for which a
simplified approach will be applied. The method uses historic
customer data, alongside future economic conditions to calculate
expected loss on receivables
(o) IFRS 16 'Leases'
The lease liability is measured at the present value of the
lease payments that are not paid at the commencement date,
discounted using the interest rate implied in the lease or, if that
rate cannot be readily determined, the Group's incremental
borrowing rate.
The Group has applied judgement to determine the lease term for
contracts with options to renew or exit early.
The carrying amount of right-of-use assets recognised was
GBP404,863 at the lease start date of 27 September 2017. A finance
charge of 3% APR is used to calculate the finance cost of the
lease.
3. Group revenue
The revenue of the group during the year was wholly in the
United Kingdom and the revenue of the group for the year derives
from the same class of business as noted in the Strategic
Report.
2021 2020
----------- -----------
GBP GBP
Gross interest earned from treasury deposits, cash
at bank and overdrawn client accounts 4,512,260 4,580,067
Commissions 5,926,669 5,279,932
Fees 3,858,334 3,481,138
14,297,263 13,341,136
=========== ===========
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 noted in 2 (g) the directors regard the operations of the
group as a single reporting segment on the basis there is only a
single organisational unit that is reported to key management
personnel for the purpose of performance assessment and future
resource allocation.
5. Profit before income tax 2021 2020
-------- --------
Profit before income tax is stated after charging/(crediting): GBP GBP
Directors' emoluments 491,426 723,545
Depreciation - right of use asset 80,973 80,973
Depreciation - owned assets 14,370 12,521
Amortisation (included within administrative expenses
in the consolidated income statement) 32,090 49,414
Low value leases 8,852 8,852
Impairment of receivable charge 13,152 30,305
Bank transaction fees 121,957 91,462
======== ========
Details of directors' annual remuneration as at 31 December 2021
are set out below:
2021 2020
---------- ----------
GBP GBP
Short-term employee benefits 438,850 654,362
Post-employment benefits 44,043 60,663
Benefits in kind 8,533 8,520
---------- ----------
491,426 723,545
========== ==========
Details of the highest paid director are as follows:
Aggregate emoluments 315,700 315,700
Company contributions to personal pension scheme - -
Benefits in kind 8,533 7,788
---------- ----------
324,233 323,488
========== ==========
Emoluments Pension Total
& Benefits
in kind
------------------ ---------- ----------
Directors GBP GBP GBP
Andrew J Grant 324,233 - 324,233
Jolyon C Head 98,650 44,043 142,693
G S McAusland (resigned
31 March 2021) 6,500 - 6,500
S M Middleton (appointed
1 April 2021) 18,000 - 18,000
------------------ ---------- ----------
TOTAL 447,383 44,043 491,426
================== ========== ==========
During the year benefits accrued for one director (2020: two directors)
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:
2021 2020
---------- ----------
Management and administration 63 61
========== ==========
The aggregate payroll costs of these persons were GBP GBP
as follows:
Wages, salaries & social security 2,487,787 2,653,470
Pension contributions including salary sacrifice 78,831 93,766
2,566,618 2,747,236
========== ==========
Key personnel
The directors disclosed above are considered to be the key
management personnel of the group. The total amount of employers
NIC paid on behalf of key personal was GBP56,835 (2020:
85,159).
6. Auditors' remuneration
During the year the company obtained the following services from the company's
auditors as detailed below:
2021 2020
--------- ---------
GBP GBP
Fees payable to the company's auditors for the audit
of the company's annual financial statements 26,000 25,000
Fees payable to the company's auditors and its associates
for other services:
The audit of the company's subsidiaries, pursuant to
legislation 10,000 9,000
--------- ---------
Total audit fees 36,000 34,000
Taxation Compliance 5,500 5,000
41,500 39,000
========= =========
The audit costs of the subsidiaries were invoiced to and met by
Jarvis Securities plc.
7. Income and deferred tax charges - group 2021 2020
------------ ------------
GBP GBP
Based on the adjusted results for the year:
UK corporation tax 1,463,681 1,303,937
Adjustments in respect of prior years 154 (465)
Total current income tax 1,463,835 1,303,472
Deferred income tax:
Origination and reversal of timing differences 2,052 3,039
Adjustment in respect of prior years (126) (569)
Adjustment in respect of change in deferred tax rates 14,386 4,482
------------ ------------
Total deferred tax charge 16,312 6,952
------------ ------------
1,480,146 1,310,424
============ ============
The income tax assessed for the year is more than the standard rate of corporation
tax in the UK (19%). The differences are explained below:
Profit before income tax 7,660,997 6,870,114
============== =============
Profit before income tax multiplied by the standard
rate of corporation tax in the UK of
19% (2020 - 19%) 1,455,589 1,305,322
Effects of:
Expenses not deductible for tax purposes 9,346 1,486
IFRS 16 transitional adjustment - (122)
Adjustments to tax charge in respect of previous years 28 (1,034)
Ineligible depreciation 320 290
Adjust in respect of change in deferred tax rate 14,863 4,482
Current income tax charge for the years 1,480,146 1,310,424
============== =============
Movement in (assets) / provision - group:
Provision at start of year 45,617 38,664
Deferred income tax charged in the year 16,311 6,953
Provision at end of year 61,928 45,617
======= =======
Movement in (assets) / provision - company:
Provision at start of year 46,253 38,664
Deferred income tax charged in the year 16,594 7,589
Provision at end of year 62,847 46,523
======= =======
8. Earnings per share 2021 2020
----------- -----------
GBP GBP
Earnings:
Earnings for the purposes of basic and diluted
earnings per share
(profit for the period attributable to the
equity holders of the parent) 6,180,851 5,559,691
=========== ===========
Number of shares:
Weighted average number of ordinary shares for the
purposes of basic earnings per share 44,419,318 43,739,085
44,419,318 43,739,085
=========== ===========
On 29 October 2020 there was a capital reorganisation whereby
each of the company's issued and unissued ordinary shares of
GBP0.01 each were subdivided into 4 ordinary shares of GBP0.0025
each. The 2020 figures have been adjusted to reflect this
subdivision. Shares held in treasury are deducted for the purpose
of calculating earnings per share.
9. Property, plant & equipment
- group & company Right of Leasehold Office Total
use assets & Property Equipment
- Leasehold
-------------- ------------- ------------ --------
Cost: GBP GBP GBP
At 1 January 2020 303,648 222,450 296,283 822,381
Additions - - 11,837 11,837
Disposals - - - -
-------------- ------------- ------------ --------
At 31 December
2020 303,648 222,450 308,120 834,218
Additions - - 11,296 11,296
Disposals - - - -
-------------- ------------- ------------ --------
At 31 December
2021 303,648 222,450 319,416 845,514
-------------- ------------- ------------ --------
Depreciation:
At 1 January 2020 80,973 15,105 264,832 360,910
Charge for the
year 80,973 1,949 10,572 93,494
On Disposal - - - -
-------------- ------------- ------------ --------
At 31 December
2020 161,946 17,054 275,404 454,404
Charge for the
year 80,973 1,949 12,421 95,343
On Disposal - - - -
-------------- ------------- ------------ --------
At 31 December
2021 242,919 19,003 287,825 549,747
-------------- ------------- ------------ --------
Net Book Value:
At 31 December
2021 60,729 203,447 31,591 295,767
============== ============= ============ ========
At 31 December
2020 141,702 205,396 32,716 379,814
============== ============= ============ ========
The net book value of non-depreciable land is GBP125,000 (2020:
GBP125,000).
10. Intangible assets &
goodwill - group & company Intangible assets
---------------------------------------------------- --------
Customer Databases Software Website Total
Goodwill Relationships Development
----------- --------------- ---------- ------------- -------- --------
GBP GBP GBP GBP GBP GBP
Cost:
At 1 January 2020 342,872 177,981 25,000 299,286 261,713 763,980
Additions - - - 46,005 - 46,005
At 31 December 2020 342,872 177,981 25,000 345,291 261,713 809,985
Additions - - - 23,677 - 23,677
At 31 December 2021 342,872 177,981 25,000 368,968 261,713 833,662
----------- --------------- ---------- ------------- -------- --------
Amortisation:
At 1 January 2020 - 177,981 16,719 238,599 225,253 658,552
Charge for the year - - 1,000 20,289 28,125 49,414
At 31 December 2020 - 177,981 17,719 258,888 253,378 707,966
Charge for the year - - 1,000 27,752 3,338 32,090
At 31 December 2021 - 177,981 18,719 286,640 256,716 740,056
----------- --------------- ---------- ------------- -------- --------
Net Book Value:
At 31 December 2021 342,872 - 6,281 82,328 4,997 93,606
=========== =============== ========== ============= ======== ========
At 31 December 2020 342,872 - 7,281 86,403 8,335 102,019
=========== =============== ========== ============= ======== ========
The goodwill balance represents an acquired customer base, that
continues to trade with the group to this day and, more
fundamentally, systems, processes and a registration that
dramatically reduced the group's dealing costs. These systems and
the registration contributed significantly to turning the group
into the low cost effective provider of execution only stockbroking
solutions that it is today. The key assumptions used by the
directors in their annual impairment review are that the company
can benefit indefinitely from the reduced dealing costs and the
company's current operational capacity remains unchanged. The
recoverable amount of the goodwill has been assessed using the
value in use method and there is significant headroom based on this
calculation. There are no reasonable changes in assumptions that
would cause the cash generating unit value to fall below its
carrying amount.
11. Investments in subsidiaries Company
2021 2020
-------- --------
Unlisted Investments: GBP GBP
Cost:
At 1 January 284,239 284,239
As at 31 December 284,239 284,239
======== ========
Shareholding Holding Business
Jarvis Investment Management Limited 100% 25,000,000 1p Ordinary shares Financial administration
Dudley Road Nominees Limited* 100% 2 GBP1 Ordinary shares Dormant nominee company
JIM Nominees Limited* 100% 1 GBP1 Ordinary shares Dormant nominee company
Galleon Nominees Limited* 100% 2 GBP1 Ordinary shares Dormant nominee company
All subsidiaries are located in the United Kingdom and their
registered office is 78 Mount Ephraim, Tunbridge Wells, Kent, TN4
8BS.
* indirectly held
12. Trade and other receivables Group Company
Amounts falling due within one year: 2021 2020 2021 2020
---------- ---------- -------- --------
GBP GBP GBP GBP
Trade receivables 1,504,513 588,989 - 24,000
Settlement receivables 4,365,820 5,654,665 - -
Other receivables 128,183 352,864 122,265 343,125
Prepayments and accrued income 363,191 326,636 15,673 14,984
Other taxes and social security - - 1,020 6,179
6,361,707 6,923,154 138,958 388,288
========== ========== ======== ========
Settlement receivables are short term receivable amounts arising
as a result of the settlement of trades in an agency capacity. The
balances due are covered by stock collateral and bonds. An analysis
of trade and settlement receivables past due is given in note 25.
There are no amounts past due included within other receivables or
prepayments and accrued income.
13. Leases
Lease liabilities are secured by the related underlying
assets.
The undiscounted maturity analysis of lease liabilities as at 31
December 2021 is as follows:
< 1 year (GBP) 1-2 years (GBP) 2-3 years (GBP)
Lease payment 65,625 - -
--------------- ---------------- ----------------
Finance charge 972 - -
--------------- ---------------- ----------------
Net present value 64,653 - -
--------------- ---------------- ----------------
The undiscounted maturity analysis of lease liabilities as at 31
December 2020 is as follows:
< 1 year (GBP) 1-2 years (GBP) 2-3 years (GBP)
Lease payment 87,500 65,625 -
--------------- ---------------- ----------------
Finance charge 3,520 972 -
--------------- ---------------- ----------------
Net present value 83,980 64,653 -
--------------- ---------------- ----------------
2021
-----------
Lease liabilities included in the current statement of financial
position GBP
Current 64,653
Non-current -
-----------
64,653
-----------
2021
-----------
GBP
Amounts recognised in income statement 3,520
-----------
3,520
-----------
The company has a lease with Sion Properties 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
GBP87,500, being the market rate on an arm's length basis, and
expires on 26 September 2027. The total cash outflow for leases in
2021 was GBP87,500. There is an option to terminate the lease on 26
September 2022 and therefore this is the discounted period.
14. Investments held for trading Group Company
2021 2020 2021 2020
------------ ------------ ---------- ----------
Listed Investments: GBP GBP GBP GBP
Valuation:
At 1 January 4,183 4,600 - -
Additions 1,272,780 1,060,177 - -
Disposals (1,275,005) (1,060,594) - -
As at 31 December 1,958 4,183 - -
============ ============ ========== ==========
Listed investments held for trading are stated at their market value at
31 December 2021 and are considered to be level one assets
in accordance with IFRS 13. The group does not undertake any principal
trading activity.
15. Cash and cash equivalents Group Company
2021 2020 2021 2020
------------ ------------ ---------- ------------
GBP GBP GBP GBP
Balance at bank and in hand
- group/company 4,864,077 6,320,942 2,329,510 2,222,469
Cash held for settlement of
market transactions (1,083,483) (2,525,962) - -
3,780,594 3,794,980 2,329,510 2,222,469
============ ============ ========== ============
In addition to the balances shown above the group has segregated
deposit and current accounts held in accordance with the client
money rules of the Financial Conduct Authority. The group also has
segregated deposits and current accounts on behalf of model B
customers of GBP1,527,547 (2020: GBP2,111,321) not governed by
client money rules therefore they are also not included in the
statement of financial position of the group. This treatment is
appropriate as the business is a going concern however, were an
administrator appointed, these balances would be considered assets
of the business.
16. Share capital 2021 2020
--------- ---------
160,000 160,000
Authorised:
64,000,000 Ordinary shares of 0.25p each 160,000 160,000
--------- ---------
2021 2020
GBP GBP
At 1 January 2021 111,828 111,828
Allotted, issued and fully paid:
44,731,000 (2020: 44,731,000) Ordinary shares of 1p
each 111,828 111,828
========= =========
The company has one class of ordinary shares which carry no
right to fixed income.
On 29 October 2020 there was a capital reorganisation whereby
each of the company's issued and unissued ordinary shares of
GBP0.01 each were subdivided into 4 ordinary shares of GBP0.0025
each. The 2020 figures have been adjusted to reflect this
subdivision. Shares held in treasury are deducted for the purpose
of calculating earnings per share. During the period 917,600 shares
were sold from treasury. As at the period end no shares are held in
treasury.
17. Trade and other payables Group Company
Amounts falling due within 2021 2020 2021 2020
one year:
---------- ---------- ---------- ----------
GBP GBP GBP GBP
Trade payables 383,364 188,688 1,015 10,554
Settlement payables 3,138,814 2,997,247 - -
Amount owed to group undertaking - - 2,383,347 750,866
Other taxes and social security 107,162 174,712 - -
Other payables 893,722 566,654 - -
Accruals 377,382 248,729 43,100 39,600
---------- ---------- ---------- ----------
Trade and other payables 4,900,444 4,176,030 2,427,462 801,020
Lease liabilities 64,653 83,980 64,653 83,980
Income tax 703,450 602,794 408,234 350,832
Total liabilities 5,668,547 4,862,804 2,900,349 1,235,832
========== ========== ========== ==========
Settlement payables are short term payable amounts arising as a
result of settlement of trades in an agency capacity. Trade
payables and other taxes and social security are all paid at the
beginning of the month after the invoice was received or the
liability created.
18. Dividends 2021 2020
---------- ----------
GBP GBP
Interim dividends paid on Ordinary 1p shares 9,811,421 4,836,310
========== ==========
Dividend per Ordinary 1p share 22.0 11.06
========== ==========
Please refer to the directors' report for dividends declared
post year end.
19. 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. Cash and cash equivalents and trade and other
receivables are categorised as held at amortised cost, and trade
and other payables are classified as held at amortised cost. Other
than investments held for trading all financial assets and
liabilities are held at amortised cost and their carrying value
approximates to their fair value.
The main financial asset of the group is cash and cash
equivalents which is denominated in Sterling and which is detailed
in note 14. 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, treasury shares
and property.
20. 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 bad
debts.
21. Immediate and ultimate parent undertaking
There is no immediate or ultimate controlling party.
22. Related party transactions
The company has a lease with Sion Properties Limited, a company
controlled by a director of the company, for the rental of 78 Mount
Ephraim, a self-contained office building. The lease has an annual
rental of GBP87,500. Full details of this lease are disclosed in
Note 13.
During the year Jarvis Investment Management Limited paid Jarvis
Securities Plc GBP7,000 (2020: GBP7,000) for rental of a disaster
recovery site.
Jarvis Securities plc owed Jarvis Investment Management Limited
GBP2,663,298 (2020: GBP750,866) at year end.
During the year, directors, key staff and other related parties
by virtue of control carried out share dealing transactions in the
normal course of business. Commissions for such transactions are
charged at various discounted rates. The impact of these
transactions does not materially or significantly affect the
financial position or performance of the company. At 31 December
2021, these same related parties had cash balances of GBP634,423
(2020: GBP392,110) and interest was earned during the year
amounting to GBP2,181 (2020: GBP923). In addition to cash balances
other equity assets of GBP60,729,502 (2020: GBP49,950,739) were
held by JIM Nominees Ltd as custodian.
During the year Jarvis Securities Plc charged GBP3,304,759
(2020: GBP3,869,812) to Jarvis Investment Management Limited for
use of intellectual properties.
23. Capital commitments
As of 31 December 2021, the company had no capital commitments
(2020: nil).
24. Fair value estimation
The fair value of financial instruments traded in active markets
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.
25. 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 100% 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 Conduct 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 Conduct Authority
("FCA") 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 FCA's regulatory requirements throughout the
period. Information disclosure under Pillar 3 of the Capital
Requirements Directive is available from the group's websites.
During the period Jarvis Securities Plc cancelled its share premium
account. This did not impact the regulatory capital of Jarvis
Investment Management Limited. Further information regarding
regulatory capital is disclosed in the strategic report.
The group offers settlement of trades in sterling as well as
various foreign currencies. 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.
As of 31 December 2021, trade receivables of GBP186,074 (2020:
GBP159,784) were past due and were impaired and partially provided
for. The amount of the provision was GBP143,524 as at 31 December
2021 (2020: GBP131,456). 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. The
group does not anticipate future write offs of uncollectable
amounts will be significant as the group now imposes much more
restrictive rules on clients who utilise extended settlement
facilities.
Group Company
Provision of impairment of 2021 2020 2021 2020
receivables:
-------- -------- ----- -----
GBP GBP GBP GBP
At 1 January 131,456 101,539 - -
Charge / (credit) for the year 13,152 30,306 - -
Uncollectable amounts written
off (1,084) (389) - -
-------- -------- ----- -----
At 31 December 143,524 131,456 - -
======== ======== ===== =====
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR MZGGFLLKGZZG
(END) Dow Jones Newswires
March 10, 2022 02:00 ET (07:00 GMT)
Jarvis Securities (LSE:JIM)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Jarvis Securities (LSE:JIM)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
