Jarvis Securities Share Discussion Threads

[gdcox] 10/11/2021 08:15

Cross fingers against a bid. This is an efficiently run business and a fair payer to investors. I'm a reasonably sophisticated investor and yet delighted that Jim has risen to 25% of my share portfolio alongside NG. A bid will screw that up and make much work in
replacement in today's particularly topsy-turvy world.

[melton john] 09/11/2021 22:37

I don't see how not knowing about a ridiculous bid is against the shareholders' interests so we'll have to agree to differ on that. The takeover code is very wordy on all aspects of takeovers.

[cfro] 09/11/2021 17:51

Melton John, i believe the rules might be changing on this.
Isnt it the right of shareholders to know if the company has received a bid approach low-ball chancers or other? ....because it certainly should be!
The management should at the very least comment in the annual report.

[melton john] 09/11/2021 15:21

cfro
"Im really surprised someone hasn't had a sniff around here before now."

I've recently watched a very interesting interview on what goes on behind closed doors in boardrooms. A man who has years of experience as CEO, Non exec, Chairman talks of LTIPs, recruitment, acquisitions, strategy, reading between the lines on reports, detecting fraud etc.
He was CEO of Safeway when Morrison's took them over and one of the things he said re. offers is that directors are under no obligation to report every chancer who puts a low ball bid to the company. He used to get one a day I think he said.

hxxps://piworld.us12.list-manage.com/track/click?u=336d5d1b210e4a22e46faea5a&;id=529dd9b960&e=dbe7855216

[shanklin] 09/11/2021 14:06

The nearest thing we are going to get to a positive TS from JIM :-)

Takes the annual dividend to 13.5p, ahead of the forecast 13.25p.

[cwa1] 09/11/2021 14:04

Reasonable double figure increase(3.125p last year)

[alter ego] 09/11/2021 13:56

rns just out
"The Board of Jarvis announces that it is declaring a fourth quarterly interim dividend of 3.5 pence per share, to be paid on 9 December 2021 to shareholders on the register on 19 November 2021 and the shares will become ex-dividend on 18 November 2021."

[topvest] 07/11/2021 20:27

Its quite small and has got effectively a controlling shareholder.

[cfro] 07/11/2021 17:18

Im really surprised someone hasn't had a sniff around here before now. Maybe JIM is so far under the radar that nobody has noticed it quietly getting on with it.

[tenapen] 07/11/2021 14:47

Well Well, the earlier flagged mega launch of Interactive Investor with an expected M/C of £1.2b looks to be in doubt as it 'maybe' the target of a £1.5b takeover.






Abrdn eyes £1.5bn takeover of Interactive Investor for retail investment push

Boss Stephen Bird wants to win over investors after disappointment following the merger of Standard Life and Aberdeen Asset Management

[tenapen] 07/11/2021 11:44

Morning John - All,

Trade volumes are still healthy, so this week Q4 dividend announcement should be held at last years number. Any interest rate rise would have been the cherry on the cake ! ...... next time !.

[melton john] 03/11/2021 14:39

Apologies all, my 76 year old memory isn't as good as I thought. I should have checked instead of off the top of my head. Must have them mixed up with another company.

[shanklin] 03/11/2021 11:44

Hi MJ, Have there been dividend announcements in the past with an accompanying TS?

Must admit I see the size of the dividend as a hint in terms of current trading.

[melton john] 03/11/2021 11:02

Thanks for that Tenapen, just made a top up prior to the divi announcement due soon. I suspect a "steady as she goes" trading statement will accompany it. No reason for fireworks or the opposite as far as I can see.

[tenapen] 23/10/2021 19:36

16 Feb 2017

Final Results

Cont...

CHAIRMAN'S STATEMENT

Last year I urged a sense of caution over the short-term performance of Jarvis, whilst highlighting that over the medium to long term the business was positioned to do well and would benefit significantly once interest rates rose and market activity increased. I am happy to report that my short-term pessimism was overdone. During 2016 we saw a dramatic improvement in market conditions compared to what we experienced in the latter half of 2015. The catalyst for this was the Brexit result. Investors were cautious prior to the vote with many fearing a vote to leave the EU could result in a significant fall in equity prices. Once any decline failed to materialise trade volumes increased throughout the remainder of 2016, and are being sustained at those levels at the time of writing.



Whilst the FTSE 100 has recently set record highs, our own share price has remained below the highs of 2014. This has however provided an opportunity to purchase more of our own shares to hold in treasury. Although our share price has not fully recovered to the levels of 2014, we have had another record year, and ignoring the special dividend paid out last year, we have increased dividend payments by 6%. We have adhered to our stated policy of distributing 2/3rds of profit after tax but cash reserves in the business continue to build up. Going forward therefore the Board may flex this policy such that we pay out at least 2/3rds of profits as dividends, further announcements will be made as appropriate.



Looking forward into 2017 and beyond I am confident we will continue to grow the business and further improve our financial results. Market conditions are currently excellent for our own retail client activity, we have a strong pipeline of new Custodian and Model B business, and cash under administration is at record levels. Even modest increases in interest rates which now seem as though they may materialise in the shorter term will significantly increase profitability.

Cont...
-------


Quote;
Even modest increases in interest rates which now seem as though they may materialise in the shorter term will significantly increase profitability.

[luderitz] 21/10/2021 10:44

Can't argue with that.

[melton john] 21/10/2021 09:14

I've been invested in Jim for 20 Yrs without knowing the recipe for their secret sauce. They keep doing what they've been doing and doing it well. During that time with Divi reinvestment, I've built a sizeable holding and will continue to hold and draw a useful Divi until the story changes.

[tiswas] 21/10/2021 08:54

Given the company already earns a significant premium to available rates

How does it do this? Is there increased credit/counterparty risk?

Thanks

[shanklin] 21/10/2021 08:05

So, over that 5 year period, the interest rate received has reduced by circa 20.5%, i.e.
100*(1-((1.062/1.112)*5))

So its reduced from circa 208bp to 166bp

With the base rate to perhaps increase by up to 90bp, from 0.1% to 1%, perhaps some of this lost margin can be recovered?

Although the base rate in 2016 was 0.5% until August, when it reduced to 0.25%, so presumably there are other forces at work in terms of the interest rates achievable by JIM.

[gsbmba99] 20/10/2021 17:34

I calculated a 5 year CAGR of cash under administration to 30 Jun 21 of 12.2% and a 5 year CAGR in interest earned to 31 Dec 20 of 6.2%. Company reporting patterns prevent us from matching up the time periods. There's been some compression in the rate of interest earned but more than offset by increases in cash under administration. If the interest rate compression ceases, one could reasonably expect interest earned to more closely follow growth in cash under administration. If the company can increase the interest rate achieved, then interest earned should grow faster than cash under administration. Given the company already earns a significant premium to available rates, it might be safer to assume the company only captures a small(ish) portion of any interest rate increases.

[shanklin] 20/10/2021 16:50

Excellent, thank you gsbmba99

That's very helpful.

So, if JIM can boost their interest income by whatever the future base rate changes may be, its helpful, especially if the base rate gets anywhere near 1%... ...but historically its the ongoing increases in cash under administration that have really been driving the situation.

Achieving anywhere near 166bp is very impressive.

[gsbmba99] 20/10/2021 16:28

They reported cash under administration as a KPI but subsequently changed the KPI to growth in cash under administration. You have to go back to the 2013 interim report when cash under administration was last reported (£108.7m) and then roll the figure forward by the subsequently published growth in cash under administration KPI from the interim reports.

[shanklin] 20/10/2021 11:41

gsbmba99

How did you derive your £276m please?

TIA.

[gsbmba99] 06/10/2021 17:20

There is no disclosure on the interest rate achieved. I estimated it at 166bps for 2020 using 2020 interest earned and my estimate of the 30 Jun 20 cash balance (£276m). There are obvious issues with using a single point in time for the cash balance to estimate the rate but it's all we have. The 30 Jun 21 figure was 17.3% higher which would imply £325m on that date if my prior estimate is correct. On cash under administration, WHI says "we estimate at £300m-plus" in their August note so I'm probably not a million miles away. JIM's interest rate achieved is vastly higher than other brokers who seem to earn consistent with BOE base rate. Supposedly only Andrew makes the arrangements of where the client funds get placed and the company has a stellar track record of not terminating the deposits early which was said to attract a premium.