7th Mar 2025 09:34
(Alliance News) - Shares in Just Group PLC on Friday fell heavily despite slightly better than expected annual operating profit and a 20% bump to its dividend.
The London-based provider of retirement income products said IFRS pretax profit fell 34% to GBP113 million in 2024 from GBP172 million in 2023. Adjusted pretax profit fell 7.3% to GBP482 million from GBP520 million, as strong underlying profit was offset by lower non-operating items.
Underlying operating profit, however, rose 34% to GBP504 million in 2024 from GBP377 million, ahead of GBP499 million consensus, driven by new business sales growth, higher recurring in-force profit, and increased scale, Just Group said.
Despite this shares in Just Group plunged 13% to 141.20 pence each in London on Friday. They hit a low of 134.67p. However, the shares remain up 58% in the past 12 months.
Just Group said its defined benefit and retail businesses contributed to an "excellent" performance, with both operating in markets that are benefitting from long-term structural growth drivers.
Retirement Income sales grew 36% to GBP5.31 billion from GBP3.89 billion. New business margins were slightly lower at 8.7% in 2024 compared with 9.1% a year prior, principally driven by business mix. These combined drove a 30% increase in new business profit to GBP460 million from GBP355 million, ahead of GBP444 million consensus.
Chief Executive David Richardson said: "We made a pledge three years ago to double profits over five years. We have significantly exceeded that target in just three years and created substantial shareholder value as a result."
Richardson said markets remain "buoyant" and "we are confident in our ability to grow earnings at an attractive rate from this significantly higher level. We remain committed to compounding further growth in shareholder value."
The group's Solvency II capital coverage ratio increased to 204% at December 31 from 197% a year before, well ahead of 194% consensus. Just Group credited management actions, as well as rising interest rates.
Return on equity improved to 15.3% from 13.5% and tangible net assets per share to 254 pence from 224p. The latter did miss the 261p market consensus, however.
Just Group declared a final dividend of 1.80p per share, up 20% from 1.50p a year ago, taking the total payout to 2.50p per share, up 20% from 2.08p. This beat consensus of 2.41p.
"Our robust capital position and reduced sensitivities to market and other risks enable us to sustainably fund our ambitious growth plans from our own means," Just Group said in a statement.
By Jeremy Cutler, Alliance News reporter
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