Jarvis Securities, a leading administration-services provider, announced on Thursday that it saw a significant increase in pretax profit and revenue during the first half of its fiscal year. Despite reduced volumes and clients, the company managed to offset these challenges with higher interest rates.
Pretax Profit Rose 23%
Jarvis Securities reported a 23% rise in pretax profit, reaching £3.8 million ($4.9 million). This increase can be primarily attributed to the upward trend in interest rates, which brought in additional income for the company. Although transaction volumes in the market remained subdued, this boost in interest rates helped to offset the decline in commission and fees resulting from lower volumes.
Revenue Increased by 17%
The company also saw a 17% rise in revenue, reaching £7.3 million. This growth can be partly attributed to the same factors that drove the increase in pretax profit. Despite the challenging market conditions, Jarvis Securities managed to capitalize on higher interest rates, resulting in a positive outcome for the company.
Adapting to Regulatory Changes
As part of an ongoing regulatory review, Jarvis Securities is implementing significant changes to its process and controls. The company has begun exiting relationships that pose a higher-than-tolerable risk level for anti-financial crime and money laundering compliance. Although this move has led to a reduction in assets and cash under administration, Jarvis Securities remains committed to working through the review and emerging as a more robust firm.
Positive Outlook for the Future
Despite the regulatory challenges, Jarvis Securities remains optimistic about its future growth prospects. The company is focused on implementing its plans for expansion and looks forward to capitalizing on opportunities in the market.
Shares of Jarvis Securities were up 1.0 pence, or 0.7%, at 147.0 pence as of 0715 GMT.
