Last checked at 8 Dec 2009 07:00
8 December 2009
Jarvis Securities plc
('Jarvis' or the 'Company')
Trading Update
Jarvis is delighted to report that a number of small commercial contracts have been agreed and services commenced. These are not expected to be individually material to the Company's financial performance. There however remains a good pipeline of enquiries which are expected to translate into further contracts over the coming months.
In addition, the significant growth in the retail business previously reported has continued and the Company is pleased to report that:
| - | Daily average trade volume increased by 66% to 30 November 2009 compared to the same period in 2008 |
| - | Bargains settled for commercial clients increased by 71% to 30 November 2009 compared to the same period in 2008 |
| - | Active client numbers have increased by 38% since 31 December 2008 |
However, the Company's financial performance is highly geared to interest rates and with base rate at its lowest level since the Bank of England was founded in 1694 the Company's interest earnings have come under extreme pressure. The continued depressed money market rates on deposits are expected to impact financial results in 2010, but any increase in such rates will have a significant positive effect on future financial performance.
Andrew Grant, Chairman and Chief Executive, commented:
"Core trading activities continue to make excellent progress. Only a year ago, maintaining our current level of profitability on such interest rates would not have been possible and this underlines the progress made in growing the business and balancing our revenue streams. With cash under administration at about twice the level of a year ago, we are very well positioned for the expected increase in interest rates, although it is impossible for the Board to determine when that may occur."
Enquiries:
Jarvis Securities plc Tel: 0870 224 1111
Andrew Grant
Mathew Edmett
Arbuthnot Securities Tel: 020 7012 2000
Alasdair Younie
Notes:
Jarvis Securities plc is the holding company for Jarvis Investment Management plc (AIM: JIM.L) a stock broking company and outsourced service provider for bespoke tailored financial administration. Jarvis was established in 1984 and is a member of the London Stock Exchange; a broker dealer member of PLUS Markets, authorised and regulated by the Financial Services Authority and an HM Revenue & Customs approved ISA manager. Jarvis has more than 40,000 retail clients and a growing number of institutional clients. As well as normal retail broking Jarvis provides cost effective and flexible share trading facilities within ISA and SIPP wrappers.
Jarvis provides outsourced and partnered financial administration services to a number of third party organisations. These organisations include advisers, stockbrokers, banks and fund managers. Jarvis can tailor its administration processes to the requirements of each organisation and has a strong reputation for flexibility and cost-effectiveness.