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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Jarvis Securities Plc | LSE:JIM | London | Ordinary Share | GB00BKS9NN22 | ORD 0.25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 53.00 | 51.00 | 55.00 | 53.00 | 53.00 | 53.00 | 6,625 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Security Brokers & Dealers | 13.07M | 3.98M | 0.0890 | 5.96 | 23.71M |
From Aug 2019 to Aug 2024
TIDMJIM
RNS Number : 3790P
Jarvis Securities plc
18 February 2016
Jarvis Securities plc
("Jarvis" or "the Company" or "the Group")
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015
HIGHLIGHTS
-- 7% increase in profit before tax -- 11% increase in year on year interest income -- 61% growth in dividend per share -- 7% increase in EPS
Enquiries:
Jarvis Securities plc Tel: 01892 510515
Andrew Grant
Jolyon Head
WH Ireland Limited 0113 394 6600
Katy Mitchell
Liam Gribben
Notes:
Jarvis Securities plc is the holding company for Jarvis Investment Management Limited (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 ISDX Markets, authorised and regulated by the Financial Conduct Authority and an HM Revenue & Customs approved ISA manager. 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.
The Company is tomorrow sending to shareholders its Annual Report and Accounts for the year ended 31 December 2015, together with a notice convening the Annual General Meeting ("AGM"), to be held at the Company's offices on Thursday 24 March 2016. The Annual Report and Accounts and Notice of AGM will also be available from the Company's website, www.jarvissecurities.co.uk.
CHAIRMAN'S STATEMENT
-- 7% increase in profit before tax -- 11% increase in year on year interest income -- 61% growth in dividend per share -- 7% increase in EPS
I cannot help but feel a sense of déjà vu as I write this as market conditions in 2015 have followed almost exactly the same pattern as 2014. In the first half of the year market sentiment was positive with the FTSE 100 share index briefly breaking through the 7,000 point barrier in April and May. This in turn led to healthy trade volumes across the market. During the second half of the year concerns about the Chinese economy and the impact of the fall in oil prices have dominated investors' thoughts. Prices have fallen across all market sectors and trade volumes declined.
In spite of a difficult second half in 2015 I am pleased to report another record year of profits. I remain cautious about our short term performance given continuing market uncertainty and the low interest rate environment. Over the medium to long term we believe the business is well positioned to continue to grow and further improve our financial results. At the time of writing we have several enquiries in the pipeline for our outsourcing service, some of whom would immediately add significantly to our trade volumes and cash balance under administration. The interest in this service reflects a market reputation of being able to deliver in a consistent and cost effective manner for market participants. This fits with the overall Jarvis model of ensuring that we do what we say we will do and do it at a competitive price. The investment we have made in the business in recent years plays a key part in supporting that delivery and future growth.
We have this year paid out a special dividend of 10p as cash reserves in the business were continuing to build up. In addition we have purchased and will continue to purchase shares to hold in treasury where we feel the purchase price will increase returns to shareholders. The decision to pay the special dividend was made after considering other investment options for the business and reflects a business model that continues to be highly cash generative.
As I have stated before the continuing success of the business reflects successful investment in infrastructure, a focus on what the business is good at and managing the risks that any business such as ours faces. To do this requires an excellent group of people and I would like to thank all members of the Jarvis team for their continuing hard work.
Andrew Grant
Chairman
Consolidated income statement for the year ended 31 december 2015
Hot Features
Premium
Year to Year to
31/12/15 31/12/14
Notes
GBP GBP
Continuing operations:
Revenue 3 7,614,664 7,314,384
Administrative expenses (4,220,406) (4,122,256)
Finance costs 5 - (5,851)
Profit before income tax 6 3,394,258 3,186,277
Income tax charge 8 (678,155) (672,067)
Profit for the period 2,716,103 2,514,210
Attributable to equity holders
of the parent 2,716,103 2,514,210
Earnings per share 9 P P
Basic 24.46 22.79
Diluted 24.39 22.68
Consolidated statement of comprehensive income for the year
Notes Year to Year to
31/12/15 31/12/14
GBP GBP
Profit for the period 2,716,103 2,514,210
------------------------------------------------ ---------- ----------
Total comprehensive income for the period 2,716,103 2,514,210
============================================== ========== ==========
Attributable to equity holders
of the parent 2,716,103 2,514,210
================================================ ========== ==========
COMPANY statement of comprehensive income for the year
Notes Year to Year to
31/12/15 31/12/14
GBP GBP
Profit for the period 2,231,593 2,100,841
------------------------------------------------ ---------- ----------
Total comprehensive income for the period 2,231,593 2,100,841
============================================== ========== ==========
Attributable to equity holders of the
company 2,231,593 2,100,841
============================================== ========== ==========
Company No.: 5107012
Consolidated STATEMENT OF FINANCIAL POSITION at 31 december 2015
31/12/15 31/12/14
Notes
GBP GBP
Assets
Non-current assets
Property, plant and equipment 10 235,536 243,348
Intangible assets 11 174,857 230,722
Goodwill 11 342,872 342,872
753,265 816,942
Current assets
Investments held to maturity 12 - 246,979
Trade and other receivables 14 3,233,971 2,674,034
Investments held for trading 15 77,057 13,626
Cash and cash equivalents 16 9,777,936 8,296,385
----------------------------------- ------ ----------- -----------
13,088,964 11,231,024
Total assets 13,842,229 12,047,966
=================================== ====== =========== ===========
Equity and liabilities
Capital and reserves
Share capital 17 111,503 111,200
Share premium 1,520,119 1,467,485
Merger reserve 9,900 9,900
Capital redemption reserve 9,845 9,845
Share option reserve 136,556 136,556
Retained earnings 2,626,295 2,955,642
Own shares held in treasury 17 (301,514) -
Total equity attributable to
the equity holders of the parent 4,112,704 4,690,628
Current liabilities 18
Trade and other payables 18 9,389,215 7,055,111
Deferred tax 18 9,238 23,919
Income tax 18 331,072 278,308
----------------------------------- ------ ----------- -----------
Total current liabilities 18 9,729,525 7,357,338
Total equity and liabilities 13,842,229 12,047,966
=================================== ====== =========== ===========
Company No.: 5107012
(MORE TO FOLLOW) Dow Jones Newswires
February 18, 2016 02:00 ET (07:00 GMT)
CoMPANY STATEMENT OF FINANCIAL POSITION at 31 december 2015
31/12/15 31/12/14
Notes
GBP GBP
Assets
Non-current assets
Property, plant and equipment 10 235,536 243,348
Intangible assets 11 174,857 230,722
Goodwill 11 342,872 342,872
Investment in subsidiaries 13 284,239 284,239
1,037,504 1,101,181
Current assets
Trade and other receivables 14 796,631 1,173,874
Cash and cash equivalents 16 1,089,101 1,162,770
------------------------------- ------ ----------- ----------
1,885,732 2,336,644
Total assets 2,923,236 3,437,825
=============================== ====== =========== ==========
Equity and liabilities
Capital and reserves
Share capital 17 111,503 111,200
Share premium 1,520,119 1,467,485
Capital redemption reserve 9,845 9,845
Share option reserves 136,556 136,556
Retained earnings 598,450 1,412,307
Own shares held in treasury 17 (301,514) -
Total equity attributable to
the equity holders 2,074,959 3,137,393
Current liabilities 18
Trade and other payables 18 525,540 31,700
Deferred tax 18 9,238 23,919
Income tax 18 313,499 244,813
------------------------------- ------ ----------- ----------
Total current liabilities 18 848,277 300,432
Total equity and liabilities 2,923,236 3,437,825
=============================== ====== =========== ==========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Own
Capital Share shares
Share Share Merger redemption option Retained held in Total
capital premium reserve reserve reserve earnings Treasury equity
------------------------------------------ --------- ---------- --------- ----------- -------- ------------ ----------- ------------
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January 2014 107,825 1,061,972 9,900 9,845 129,162 2,263,396 - 3,582,100
Share options exercised during the year 3,375 405,513 - - - - - 408,888
Share based payment expense - - - - 7,394 - - 7,394
Profit for the financial year - - - - - 2,514,210 - 2,514,210
Dividends - - - - - (1,821,964) - (1,821,964)
------------------------------------------ --------- ---------- --------- ----------- -------- ------------ ----------- ------------
At 31 December 2014 111,200 1,467,485 9,900 9,845 136,556 2,955,642 - 4,690,628
------------------------------------------ --------- ---------- --------- ----------- -------- ------------ ----------- ------------
Share options exercised during the year 303 52,634 - - - - - 52,937
Profit for the financial year - - - - - 2,716,103 - 2,716,103
Dividends - - - - - (2,947,571) - (2,947,571)
Purchase of own shares held in treasury - - - - - - (482,072) (482,072)
Sale of own shares held in treasury
- - - - - (97,879) 180,558 82,679
At 31 December 2015 111,503 1,520,119 9,900 9,845 136,556 2,626,295 (301,514) 4,112,704
------------------------------------------ --------- ---------- --------- ----------- -------- ------------ ----------- ------------
COMPANY STATEMENT OF CHANGES IN EQUITY
Capital Share Own shares
Share Share redemption option Retained held in Total
capital premium reserve reserve earnings treasury equity
-------------------------- ---------- ----------- ------------ --------- ------------ ------------ ------------
GBP GBP GBP GBP GBP GBP GBP
At 1 January 2014 107,825 1,061,972 9,845 129,162 1,133,430 - 2,442,234
Share options exercised
during the year 3,375 405,513 - - - - 408,888
Share based payment
expense - - - 7,394 - - 7,394
Profit for the financial
year - - - - 2,100,841 - 2,100,841
Dividends - - - - (1,821,964) - (1,821,964)
At 31 December 2014 111,200 1,467,485 9,845 136,556 1,412,307 - 3,137,393
-------------------------- ---------- ----------- ------------ --------- ------------ ------------ ------------
Share options exercised
during the year 303 52,634 - - - - 52,937
Profit for the financial
year - - - - 2,231,593 - 2,231,593
Dividends - - - - (2,947,571) - (2,947,571)
Purchase of own
shares held in treasury - - - - - (482,072) (482,072)
Sale of own shares
held in treasury
- - - - (97,879) 180,558 82,679
At 31 December 2015 111,503 1,520,119 9,845 136,556 598,450 (301,514) 2,074,959
-------------------------- ---------- ----------- ------------ --------- ------------ ------------ ------------
statement OF cashflows
for the year ended 31 december 2015
CONSOLIDATED COMPANY
Year to Year to Year to Year to
31/12/15 31/12/14 31/12/15 31/12/14
Notes
------ ------------- ------------- ------------- -------------
GBP GBP GBP GBP
Cash flow from operating activities
Profit before income tax 3,394,258 3,186,277 2,786,670 2,659,026
Depreciation and amortisation 6 67,457 87,634 67,457 71,663
Share based payment expense 6 - 7,394 - 7,394
Profit on disposal of investments held to (1,875) - - -
maturity
Finance costs 5 - 5,851 - -
3,459,840 3,287,156 2,854,127 2,738,083
Decrease/(Increase) in trade and other receivables (559,937) 45,887 377,243 (627,943)
(Decrease) /Increase in trade payables 2,334,103 (3,040,756) 493,839 (143,785)
Increase in investments in subsidiaries - - - (1,201)
(Increase)/Decrease in investments held for
trading (63,431) (7,869) - -
Cash generated from operations 5,170,575 284,418 3,725,209 1,965,154
Interest paid - (5,851) - -
Income tax (paid)/received (640,072) (904,469) (501,072) (729,469)
(MORE TO FOLLOW) Dow Jones Newswires
February 18, 2016 02:00 ET (07:00 GMT)
Net cash from operating activities 4,530,503 (625,902) 3,224,137 1,235,685
Cash flows from investing activities
Purchase of property, plant and equipment (3,780) (9,078) (3,780) (9,078)
Receipt from sale of investment 248,855 - - -
Purchase of intangible assets - (1,277) - (1,277)
245,075 (10,355) (3,780) (10,355)
Cash flows from financing activities
Issue of share capital 52,937 408,888 52,937 408,888
Repurchase of ordinary share capital (482,072) - (482,072) -
Sale of treasury shares 82,679 - 82,679 -
Dividends paid (2,947,571) (1,821,964) (2,947,571) (1,821,964)
-------------------------------------------------- ------ ------------- ------------- ------------- -------------
Net cash used in financing activities (3,294,027) (1,413,076) (3,294,027) (1,413,076)
Net increase/(decrease) in cash & cash equivalents 1,481,551 (2,049,333) (73,670) (187,746)
Cash and cash equivalents at the start of the year 8,296,385 10,345,718 1,162,770 1,350,516
---------------------------------------------------------- ------------- ------------- ------------- -------------
Cash and cash equivalents at the end of the year 9,777,936 8,296,385 1,089,101 1,162,770
---------------------------------------------------------- ------------- ------------- ------------- -------------
Cash and cash equivalents:
Cash at bank and in hand 9,777,936 8,296,385 1,089,101 1,162,770
1. Basis of preparation
The company has adopted the requirements of International Financial Reporting Standards (IFRS) and IFRIC interpretations endorsed by the European Union (EU) 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 available-for-sale financial assets, and financial assets and liabilities 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. These accounting policies comply with applicable IFRS standards and IFRIC interpretations issued and effective at the time of preparing these statements.
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
IFRS 14 Regulatory Deferral Accounts
IFRS 9 Financial Instruments
IFRS 15 Revenue from Contracts with Customers and amendments to IFRS 15: Effective date of IFRS 15
IFRS 16 Leases
Amendments to IFRS 10, IFRS 12 and IAS 28: Investment Entities - Applying the Consolidation Exception
Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
Amendments to IAS 1: Disclosure Initiative
Amendment to IAS 27: Equity Method in Separate Financial Statements
Amendments to IAS16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortisation
Amendments to IFRS 11: Accounting for Acquisitions of Interests in Joint Operations
Amendments to IAS 16 and IAS 41: Bearer Plants
Other than the possible exception of IFRS 16 which is currently under review, the adoption of these Standards and Interpretations is not expected to have a material impact on the results of the Company or Group.
The preparation of financial statements in accordance with IFRS requires the use of certain accounting estimates. It also requires management to exercise judgement in the process of applying the Company's accounting policies. 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 22.
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. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described within these financial statements. In addition, note 27 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 together with long term contracts with all its customers and significant suppliers as well as 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 despite the current uncertain economic outlook.
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. Summary of significant accounting policies
(a) Revenue
Income is recognised as earned in the following way:
Commission - we charge 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. 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. Fees are accrued up to the time 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.
(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 2015.
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 minority 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 income statement is presented for Jarvis Securities plc as provided by S408 of the Companies Act 2006. The profit for the year of Jarvis Securities plc, as approved by the board, was GBP2,231,593 (2014: GBP2,100,841).
(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 three years.
Motor vehicles - 15% on cost Office equipment - 20% on cost
Land & Buildings - Buildings are depreciated at 2% on cost. Land is not depreciated.
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February 18, 2016 02:00 ET (07:00 GMT)
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet 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) Trade receivables and payables
Trading balances incurred in the course of executing client transactions are measured at initial recognition at fair value. In accordance with market practice, certain balances with clients, Stock Exchange member firms and other counterparties are included as trade receivables and payables. The net balance is disclosed where there is a legal right of set off.
(j) Operating leases and finance leases
Costs in respect of operating leases are charged on a straight line basis over the lease term in arriving at the profit before income tax. Where the company has entered into finance leases, the obligations to the lessor are shown as part of borrowings and the rights in the corresponding assets are treated in the same way as owned fixed assets. Leases are regarded as finance leases where their terms transfer to the lessee substantially all the benefits and burdens of ownership other than right to legal title.
(k) Investments
The Group classifies its investments in the following categories: investments held to maturity, investments held for trading and available-for-sale investments. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at every reporting date.
Investments held to maturity
Investments held to maturity are stated at amortised cost. Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity. Assets in this category are classified as non-current, unless they are due to mature in the 12 months following the balance sheet date.
Investment held for trading
Investments held for trading are stated at fair value. An investment is classified in this category if acquired principally for the purpose of selling in the short term. Assets in this category are classified as current and are considered to be level one assets in accordance with IFRS 13.
Purchases and sales of investments are recognised on the trade-date - the date on which the Group commits to purchase or sell the asset. Investments are initially recognised at fair value. Investments are derecognised when the rights to receive cash flows from the investments have expired or been transferred and the Group has transferred substantially all the risks and rewards of ownership. Realised and unrealised gains and losses arising from changes in fair value of investments held for trading are included in the income statement in the period in which they arise. Unrealised gains and losses arising in changes in the fair value of available-for-sale investments are recognised in equity. When investments classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the income statement as gains and losses from investment securities.
The fair value of quoted investments is based on current bid prices. If the market for an investment is not active, the Group establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, or discounted cash flow analysis refined to reflect the issuer's specific circumstances.
The Group assesses at each balance sheet date whether there is objective evidence that an investment is impaired. In the case of investments classified as available-for-sale, a decline in the fair value below its carrying value is considered in determining whether the security is impaired.
Investments in subsidiaries
Investments in subsidiaries are stated at cost less provision for any impairment in value.
(l) Foreign Exchange
The group offers settlement of trades in various currencies, predominately Sterling, US dollars and Euros. 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 minimal foreign exchange risk.
(m) 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.
(n) Cash and cash equivalents
Cash and cash equivalents comprise cash on 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.
(o) 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 balance sheet 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.
(p) 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 paid to shareholders and final dividends are approved by the company's shareholders.
(q) Share based payments
The Group applies the requirements of IFRS 2 Share-based Payment and IFRIC 11.
The Group issues equity-settled share-based payments to certain employees and other personnel. Equity-settled share-based payments are measured at fair value (excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest and adjusted for the effects of non market-based vesting conditions.
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Fair value is measured by use of a Black-Scholes option pricing model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations.
3. Group revenue
The revenue of the group during the year was made 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.
2015 2014
---------- ----------
GBP GBP
Gross interest earned from treasury deposits, cash
at bank and overdrawn client accounts 3,391,977 3,053,533
Fees, commissions, foreign exchange gains and other
revenue 4,222,687 4,260,851
7,614,664 7,314,384
========== ==========
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 the Group's sole business activity is the provision of stock broking services and all revenue is derived in the UK, management have not had occasion to define any factors to identify reportable segments.
5. Finance costs 2015 2014
------ ------
GBP GBP
Interest on bank loans, overdrafts and tax - 5,851
- 5,851
======= ======
6. Profit before income tax 2015 2014
-------- --------
Profit before income tax is stated after charging/(crediting): GBP GBP
Directors' emoluments 526,329 562,102
Depreciation - owned assets 11,592 15,797
Amortisation (included within administrative expenses
in the consolidated income statement) 55,865 55,865
Operating lease rentals - hire of machinery 9,052 9,052
Operating lease rentals - land and buildings 63,500 63,500
Impairment of receivable charge 135,550 84,555
Bank transaction fees 52,199 47,086
======== ========
Details of Directors' annual remuneration as at 31 December 2015 are set out below:
2015 2014
----------- ----------
GBP GBP
Short-term employee benefits 455,500 491,500
Post-employment benefits 61,239 56,666
Share based payment expense - 6,193
Benefits in kind 9,590 7,743
----------- ----------
526,329 562,102
=========== ==========
Details of the highest paid director are as follows:
Aggregate emoluments 240,000 264,894
Company contributions to personal pension scheme 24,000 37,966
Benefits in kind 8,132 6,703
----------- ----------
272,132 309,563
=========== ==========
Emoluments Pension Total
& Benefits
in kind
----------------------- ----------- ----------
Directors GBP GBP GBP
Andrew J Grant 248,132 24,000 272,132
Nick J Crabb 101,958 28,139 130,096
Jolyon C Head 101,000 9,100 107,700
Graeme McAusland 14,000 - 14,000
----------------------- ----------- ----------
TOTAL 465,090 61,239 526,329
======================= =========== ==========
During the year benefits accrued for three directors (2014: three directors)
under a money purchase pension scheme. In addition, Andrew Grant made a gain
of GBP141,777 (2014: GBP780,690) from exercising options.
Staff Costs
The average number of persons employed by the group, including directors,
during the year was as follows:
2015 2014
----------- ----------
Management and administration 44 42
=========== ==========
The aggregate payroll costs of these persons were as GBP GBP
follows:
Wages, salaries & social security 1,605,814 1,546,545
Pension contributions including salary sacrifice 63,025 41,700
Share based payment expense - 7,394
1,668,839 1,595,639
=========== ==========
Key personnel
The directors disclosed above are considered to be the key management personnel of the group.
7. Auditors' remuneration
During the year the company obtained the following services from the company's
auditors as detailed below:
2015 2014
--------- ---------
GBP GBP
Fees payable to the company's auditors for the audit
of the company's annual financial statements 21,000 20,000
Fees payable to the company's auditors and its associates
for other services:
The audit of the company's subsidiaries, pursuant to
legislation 12,000 11,950
--------- ---------
Total audit fees 33,000 31,950
Taxation Compliance 4,250 4,050
Other taxation advisory services not relating to compliance - 5,000
--------- ---------
37,250 41,000
========= =========
The audit costs of the subsidiaries were invoiced to and met by Jarvis Securities plc.
8. Income and deferred tax charges - group 2015 2014
--------- ---------
GBP GBP
Based on the adjusted results for the year:
UK corporation tax 688,498 683,182
Adjustments in respect of prior years 4,339 (34,624)
Total current income tax 692,837 648,557
Deferred income tax:
Origination and reversal of timing differences (11,062) 3,026
Adjustment in respect of change in deferred tax rate - (1,045)
Adjustment in respect of prior years (3,619) 21,528
--------- ---------
Total deferred tax (credit) / charge (14,681) 23,509
--------- ---------
Income tax on profit 678,155 672,067
========= =========
The income tax assessed for the year is less than the standard rate of corporation
tax in the UK (20.25%). The differences are explained below:
Profit before income tax 3,394,258 3,186,277
=========== ===========
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Profit before income tax multiplied by the standard
rate of corporation tax in the UK of
20.25% (2014 - 21.5%) 687,337 685,049
Effects of:
Expenses not deductible for tax purposes 61 -
Adjustments to tax charge in respect of previous years 720 (13,096)
IFRS 2 (share option) expense (10,358) 1,590
Ineligible depreciation 395 419
Adjustment in respect of change in deferred tax rate - (1,045)
Other - (850)
Current income tax charge for the year 678,155 672,067
=========== ===========
Movement in (assets) / provision - group and company:
Provision at start of year 23,919 410
Deferred income tax (creditor) / charged in the income
statement in the year (11,062) 1,981
Adjustment in respect of prior periods (3,619) 21,528
(Asset) / Provision at end of year 9,238 23,919
========= ============
8. Income and deferred tax charges - group (continued) Share Based
Payments
The deferred tax balances arise from taxable temporary
differences in respect of the following:
Deferred tax (asset) / liability brought forward -
Current year (10,335)
(Asset) at end of year (10,335)
============
Tangible
Assets
------------
Deferred tax liability brought forward 23,919
Charge / (credit) to income
Current year (727)
Prior year (3,619)
------------
Liability at end of year 19,573
============
9. Earnings per share 2015 2014
----------- -----------
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) 2,716,103 2,514,210
=========== ===========
Number of shares:
Weighted average number of ordinary shares for the
purposes of basic earnings per share 11,105,705 11,031,288
Effect of dilutive potential ordinary shares:
Share option scheme 32,500 55,474
----------- -----------
11,138,205 11,086,762
=========== ===========
Shares held in treasury are deducted for the purpose of calculating earnings per share. Options exercised or those lapsed as relating to former employees have been deducted for the purpose of calculating the diluted weighted average number of shares in issue for the period.
10. Property, plant & equipment
- group & company Freehold Leasehold Office Total
Land & Property Improvements Equipment
------------------ --------------- ------------ --------
Cost: GBP GBP GBP GBP
At 1 January 2014 222,450 1,191 243,579 467,220
Additions - 2,823 6,255 9,078
Disposals - - - -
------------------ --------------- ------------ --------
At 31 December
2014 222,450 4,014 249,834 476,298
Additions - - 3,780 3,780
Disposals - - - -
------------------ --------------- ------------ --------
At 31 December
2015 222,450 4,014 253,614 480,078
------------------ --------------- ------------ --------
Depreciation:
At 1 January 2014 3,411 397 213,345 217,153
Charge for the
year 1,949 556 13,292 15,797
On Disposal - - - -
------------------ --------------- ------------ --------
At 31 December
2014 5,360 953 226,637 232,950
Charge for the
year 1,949 873 8,770 11,592
On Disposal - - - -
------------------ --------------- ------------ --------
At 31 December
2015 7,309 1,826 235,407 244,542
------------------ --------------- ------------ --------
Net Book Value:
At 31 December
2015 215,141 2,188 18,207 235,536
================== =============== ============ ========
At 31 December
2014 217,090 3,061 23,197 243,348
================== =============== ============ ========
11. Intangible assets & goodwill Intangible assets
- group & company
--------------------------------------------------------------
Customer Databases Software Website Total
Goodwill Relationships Development
----------- --------------- ---------- ------------- -------- ----------
GBP GBP GBP GBP GBP GBP
Cost:
At 1 January 2014 342,872 177,981 25,000 216,685 103,519 523,185
Additions - - - 1,276 - 1,276
At 31 December 2014 342,872 177,981 25,000 217,961 103,519 524,461
Additions - - - - - -
At 31 December 2015 342,872 177,981 25,000 217,961 103,519 524,461
----------- --------------- ---------- ------------- -------- ----------
Amortisation:
At 1 January 2014 - 83,726 10,719 39,911 103,519 237,875
Charge for the year - 18,290 1,000 36,574 - 55,864
At 31 December 2014 - 102,016 11,719 76,485 103,519 293,739
Charge for the year - 18,291 1,000 36,574 - 55,865
At 31 December 2015 - 120,307 12,719 113,059 103,519 349,604
----------- --------------- ---------- ------------- -------- ----------
Net Book Value:
At 31 December 2015 342,872 57,674 12,281 104,902 - 174,857
=========== =============== ========== ============= ======== ==========
At 31 December 2014 342,872 75,965 13,281 141,476 - 230,722
=========== =============== ========== ============= ======== ==========
The addition to software development in the prior year is capital expenditure on switching and upgrading our core IT system.
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Goodwill represents the difference between the consideration paid and the fair value of assets acquired on the acquisition of a business in 2003. In accordance with the transitional provisions in IFRS 1 the group elected not to apply IFRS 3 retrospectively to past business combinations. Therefore the goodwill balance represents an acquired customer base, that continues to trade with 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 cost effective provider of execution only stockbroking solutions that it is today.
An impairment review is conducted annually (or more frequently if indicators of impairment are noted) by preparing a value in use calculation over a five year period. The key assumptions into the value in use calculation are the attrition rate of customers: 7% based upon the actual rate for the previous period and the discount rate: 6% based upon the company's weighted average cost of capital. The discount rate used is pre-tax. Having completed this calculation the directors conclude that there is no reasonably possible change in any of the key assumptions that will result in the carrying amount of goodwill exceeding its recoverable amount.
12. Investments held to maturity Group Company
2015 2014 2015 2014
----------- -------- ----- -----
Unlisted Investments: GBP GBP GBP GBP
Cost:
At 1 January 300,067 300,067 - -
Disposals (300,067) - - -
As at 31 December - 300,067 - -
----------- -------- ----- -----
Amortisation:
At 1 January 53,088 37,119 - -
Charge for the year 15,969 15,969 - -
Disposal (69,057) -
----------- -------- ----- -----
As at 31 December - 53,088 - -
----------- -------- ----- -----
Net Book Value:
At 1 January 246,979 262,948 - -
=========== ======== ===== =====
At 31 December - 246,979 - -
=========== ======== ===== =====
12. Investments held to maturity (continued)
The investment held to maturity was an 8% coupon UK Government Gilt. The Gilt was originally purchased to place as a bond with a 3(rd) party business partner. The relationship was terminated during 2015 and the Gilt returned to us. As it was no longer needed for its original purpose it was sold.
13. Investments in subsidiaries Company
2015 2014
--------- ---------
Unlisted Investments: GBP GBP
Cost:
At 1 January 284,239 283,038
Capital contributions re share option costs - 1,201
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.
* indirectly held
14. Trade and other receivables Group Company
Amounts falling due within one year: 2015 2014 2015 2014
---------- ---------- -------- ----------
GBP GBP GBP GBP
Trade receivables 219,471 335,898 15,789 7,026
Settlement receivables 1,946,180 1,414,929 - -
Amounts owed by group undertakings - - - 518,918
Other receivables 434,225 219,001 415,875 215,875
Prepayments and accrued income 634,095 704,206 364,967 432,055
3,233,971 2,674,034 796,631 1,173,874
========== ========== ======== ==========
An analysis of trade and settlement receivables past due is given in note 22. There are no amounts past due included within other receivables or prepayments and accrued income.
15. Investments held for trading Group Company
2015 2014 2015 2014
---------- ------------ -------- --------------
Listed Investments: GBP GBP GBP GBP
Valuation:
At 1 January 13,626 5,757 - -
Additions 758,882 2,650,116 - -
Disposals (695,451) (2,642,247) - -
As at 31 December 77,057 13,626 - -
========== ============ ======== ==============
Listed investments held for trading are stated at their market value at
31 December 2015 and are considered to be level one assets
in accordance with IFRS 13.
16. Cash and cash equivalents Group Company
2015 2014 2015 2014
---------- ---------- ---------- ----------
GBP GBP GBP GBP
Balance at bank and in hand
- group/company 2,792,353 3,255,338 1,089,101 1,162,770
Cash held for settlement of
market transactions 6,985,583 5,041,047 - -
9,777,936 8,296,385 1,089,101 1,162,770
========== ========== ========== ==========
17. Share capital 2015 2014
--------- ---------
160,000 160,000
Authorised:
16,000,000 Ordinary shares of 1p each 160,000 160,000
--------- ---------
2015 2014
GBP GBP
At 1 January 2015 111,200 107,825
Allotted, issued and fully paid during the year 303 3,375
--------- ---------
Allotted, issued and fully paid:
11,150,250 (2014: 11,120,000) Ordinary shares of 1p
each 111,503 111,200
========= =========
The company has one class of ordinary shares which carry no right to fixed income.
The Company has a share option scheme for certain employees of the Group. The vesting period is five years and all options have now vested. If the options remain unexercised after a period of ten years from the date of grant the options expire. Options are forfeited if the option holder leaves the Group before the options are vested and exercised.
During the period 123,250 shares were purchased to be held in treasury. 47,250 of these shares were used to satisfy options with an exercise price of 175p per option, exercised by Andrew Grant on 11(th) May 2015. As at the period end 76,000 shares are held in treasury.
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Details of the share options outstanding during the year are as follows:
2015 2014
Number of Weighted Number of Weighted
share options average exercise share options average
price exercise
price
------------------- ------------------ ------------------- -------------
Pence Pence
Outstanding at the beginning
of the year 110,000 175.00 447,500 134.39
Exercised during the year (77,500) 175.00 (337,500) 121.15
Outstanding at year end 32,500 175.00 110,000 175.00
------------------- ------------------ ------------------- -------------
Exercisable at year end 32,500 175.00 110,000 175.00
=================== ================== =================== =============
A detailed breakdown of the exercise prices for options outstanding as at
31 December 2015 is shown in the table below:
2015 2014
Exercise Price (pence) Number outstanding Exercise Number outstanding Exercise
at year dates at year dates
end end
------------------- ------------------ ------------------- -------------
17 May 2015 17 May 2015
to 17 May to 17 May
175.00 (granted 18 May 2007) 32,500 2017 110,000 2017
The total number of options unexercised and in issue at the year end is 32,500. Options were exercised throughout the year and the weighted average share price for the year was 398p (2014: 480p).
18. Trade and other payables Group Company
Amounts falling due within one year: 2015 2014 2015 2014
---------- ------------ ------------ --------
GBP GBP GBP GBP
Trade payables 70,793 63,135 3,474 -
Settlement payables 8,724,052 6,557,470 - -
Amount owed to group undertaking - - 471,697 -
Other taxes and social security 63,931 100,428 2,835 1,801
Other payables 326,449 182,579 18,483 1,750
Accruals 203,990 151,499 29,500 28,149
---------- ------------ ------------ --------
Trade and other payables 9,389,215 7,055,111 525,989 31,700
Income tax 331,072 278,308 313,489 244,813
Deferred tax 9,238 23,919 9,238 23,919
Total liabilities 9,729,525 7,357,338 848,716 300,432
========== ============ ============ ========
Settlement payables will be settled on their contracted date, which has a maximum allowed time of 20 days from when the trade date. 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.
19. Dividends 2015 2014
---------- ----------
GBP GBP
Interim dividends paid on Ordinary 1p shares 2,947,571 1,821,964
========== ==========
Dividend per Ordinary 1p share 26.5p 16.5p
========== ==========
20. Operating lease commitments - group
At 31 December 2015 the group was committed to making the following payments in respect of operating leases which expire:
Equipment Land & buildings
2015 2014 2015 2014
------- ------- -------- ---------
GBP GBP GBP GBP
Not later than one year: 9,052 9,052 63,500 63,500
Later than one year and not
later than five years: 22,631 31,683 47,625 111,125
Later than five years: - - - -
======= ======= ======== =========
Equipment leases relate to the use of postage processing and franking machines.
Operating lease commitments - company
At 31 December 2015 the company was committed to making the following payments in respect of operating leases which expire:
Land & buildings
2015 2014
-------- ---------
GBP GBP
Not later than one year: 63,500 63,500
Later than one year and not
later than five years: 47,625 111,125
======== =========
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 GBP63,500, being the market rate on an arm's length basis, and expires on 26 September 2017.
21. 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 loans and receivables, Investments held for trading are categorised as available-for-sale financial assets and trade and other payables are classified as financial liabilities. 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 16. 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.
22. 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 goodwill, intangible assets, bad debts and the expense of employee options.
As of 31 December 2015, trade receivables of GBP378,690 (2014: GBP251,113) were past due and were impaired and partially provided for. The amount of the provision was GBP207,711 as at 31 December 2015 (2014: GBP145,483). 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.
Group Company
Provision of impairment of 2015 2014 2015 2014
receivables:
--------- ---------- ----- -----
GBP GBP GBP GBP
At 1 January 145,483 212,376 - -
Charge / (credit) for the year 135,550 84,555 - -
Uncollectable amounts written
off (73,322) (151,448) - -
--------- ---------- ----- -----
At 31 December 207,711 145,483 - -
========= ========== ===== =====
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