19th Jul 2018 10:03
LONDON (Alliance News) - Stockbroker Jarvis Securities PLC said Thursday its interim profit fell as regulatory costs bit whilst revenue remained broadly flat.
For the six months ended June, pretax profit dropped 12% to GBP2.1 million from GBP2.4 million the year prior. This was as revenue fell 0.3% to GBP4.79 million from GBP4.80 million the year before.
Profit performance was hurt by a rise in administrative expenses as a result of regulatory changes. Administrative costs rose to GBP2.7 million from GBP2.5 million the year prior.
Chairman & Chief Executive Officer Andrew Grant explained that "as anticipated" the firm faced "cost increases brought about by regulatory changes including MIFID II have reduced margins for this period."
"Management undertook an in-depth review of costs early in the year and from June 2018 our commercial fee tariffs were restructured to reflect the additional costs we are incurring and the services we are now providing," Grant added. "This new tariff will offset increases in the cost base and margins have now been restored."
"The broader market has remained healthy and cash under administration has continued to increase," Grant continued. "We are beginning to achieve a higher average interest rate on these funds. The company will continue paying dividends at recent levels and increase these in line with future profits as per the dividend policy."
Financial year to date, Jarvis has paid 11.0 pence per share in total through two quarterly dividends. No new dividend payment was proposed in the current results.
Shares in Jarvis were 6.2% lower at 442.00 pence on Thursday.
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Jarvis Securities