Jarvis Securities Share Discussion Threads

[tiswas] 10/8/2023 12:18

There is a note on researchtree from W H Ireland that puts a little more meat on the bone.F/c 8.75p and 9.1p div for 23 and 24. Adj eps 11.8p and 12.3p

[cfro] 10/8/2023 10:10

Thanks jaknife,

Struggling to comprehend what JIM are telling us and as badger says above are they toxic or not...

[topvest] 10/8/2023 09:35

I've reluctantly sold the rest at 119p as that's probably a fair price for where the business is right now. You just get the feeling that the regulatory environment is just too tough for small operators like Jarvis. Interactive Investor and others are going to eat their lunch. Surely personal investors will gravitate to the bigger safer platforms. It's been a great investment for me, but obviously feeling a bit stupid for only 4 bagging rather than 10 bagging! Oh well, the dividends have been good. Good luck to those that remain.
With the benefit of hindsight this was a definite sell when the valuation hit £100m!
Once the review is over, I wouldn't be surprised to see the family sell the business.

[jaknife] 10/8/2023 09:21

cfro,

"Where did you hear that they had moved to James Brearley jaknife?"

I have two accounts with two brokers that have been affected. Both moved to James Brearley (one more efficiently than the other) and speaking to one of them they said that JB was the main game in town for replacing Jarvis.

For both brokers the issue seemed to be that they do a lot of placings with their clients.

JakNife

[badger010776] 10/8/2023 09:16

Struggling to understand how we have to ditch certain clients but other similar companies can then soak up their custom- seems crazy- either they're toxic or not?

[cfro] 10/8/2023 09:14

Where did you hear that they had moved to James Brearley jaknife?

I know it might sound silly but i was thinking that they had to get rid of some of the modelb clients because they wouldnt comply with regulations (perhaps Russian etc). However if this is the case then onus falls on JIM..

Edit - see vprt's post above..

[vprt] 10/8/2023 09:12

They DECIDED to get rid of a bunch of Model B clients, at the riskier end - from the Half Year Report:

"we have over the last six months been exiting some model B relationships which posed a higher than tolerable risk level for Financial Crime and Money Laundering compliance. This has resulted in a reduction in assets and cash under administration and has been a difficult transition for all parties involved. The model B firms themselves have had to find new outsource providers but it is my belief that this has been the correct course of action for Jarvis' long-term success."

[melton john] 10/8/2023 09:02

I don't expect we ever will know. I expect the clients that moved were given new terms that they didn't like and got a better deal with other brokers pleased to attract new business. Everyone is trying to compete for customers, banks, credit cards. I've just moved cash to a different bank for a better deal. For me, selling now would be cutting off my nose to spite my face as I have a good size holding after years of drip shares and an average price of 123p.

[evaluate] 10/8/2023 08:46

This.

Feels like the "skilled person" is dragging this out / taking the Michael a bit here.

When is this expensive process going to finish?

[shanklin] 10/8/2023 08:30

We still have no clue what JIM are/were doing so badly that causes them to lose clients... ...who then are freely able to move onto a competitor

[jaknife] 10/8/2023 08:27

Most of the Mode B clients that they've lost have moved to James Brearley & Sons.

[spectoacc] 10/8/2023 08:22

Curious about this from the original RNS tho:

"...The restrictions should have a limited impact on JIML's forecasted revenue and profitability as anticipated new business from Model B clients is not reflected or built into the published forecast. "

Yet the following is given today as half the reason for the p/w:

"The associated restrictions on Model B clients, has led to the loss of certain Model B clients and the corresponding revenue."


Presumably the Model B's are lost, never to return.

[topvest] 10/8/2023 08:17

Remember that this is the Q3 dividend, so 2.25p implies earnings of around that level, or a bit higher, as well. They were envisaging 6.2p EPS in H2 along with the 6.7p in H1, so maybe looking at 10-11p full year now. We will have to wait to see what the analyst numbers change to, but that's my guess. Of course, markets could get more volatile in Q4 which would help.

[spectoacc] 10/8/2023 08:10

I note this from September 2022:

"It is anticipated that this process will take 3 to 6 months..".

So no wonder costs are higher.

[tiswas] 10/8/2023 08:06

Wow! Imagine if they had said materially or significantly below?

Trouble is being non-specific is just as bad.

[topvest] 10/8/2023 07:58

Probably due to a big invoice from the "skilled person"..they can effectively charge what they like! Given they still need approval for dividends from the regulator 2.25p isn't too bad. I suspect that the Regulator wouldn't allow 3p, hence todays disappointment. I think I will sit tight for now. Already sold half of mine, so the rest have a zero cost and still a nice yield. The regulatory review will finish at some point.

[cfro] 10/8/2023 07:28

Disappointing, was still expecting 3p at least. They gave an update only a few weeks ago in the half year report, can't see why they couldnt have said this back then. Was hoping the increase in interest rates was largely off-setting lower trading volumes, higher costs etc..

[spectoacc] 10/8/2023 07:26

How have JIM managed to get themselves in this mess - and how serious might it get.. I like x-o, have a lot with them.

[cwa1] 10/8/2023 07:02

Dividend and Trading Update

Not the biggest surprise, a warning



Dividend Declaration

The Board of Jarvis announces that it is declaring a third quarterly interim dividend of 2.25 pence per share, to be paid on 12 September 2023 to shareholders on the register on 18 August 2023 and the shares will become ex-dividend on 17 August 2023.



Trading Update

As previously announced, a Skilled Person was appointed pursuant to s166 Financial Services and Markets Act 2000 ("FSMA") ("Skilled Person") to review the systems and controls of the Company's subsidiary, Jarvis Investment Management Limited (see announcements dated 16 September 2022 and 4 July 2023). The associated restrictions on Model B clients, has led to the loss of certain Model B clients and the corresponding revenue. In addition the costs associated with the Skilled Person review are higher than anticipated. These factors, combined with reduced trading volumes caused by market conditions, mean that the Company is now trading below current market expectations.

[thrugelmir] 09/8/2023 21:02

Why should? We might we might not.

[fokker45] 09/8/2023 17:33

So tomorrow, Thursday 10 August, we should have a dividend announcement.

[cfro] 03/8/2023 14:02

Every little helps as they say..

[melton john] 28/7/2023 17:20

I have been told by client services that it's "Consumer Duty". No extended settlement I'm told, that appears to mean normal 2 day settlement as well.

Hooray nanny is going to stop people losing money, starting Monday but forgot to tell us. Why don't they sort out the robbers and con-men instead.

[thrugelmir] 28/7/2023 15:45

Been issues with WH Ireland that may have unsettled the broking houses. Nothing to suggest that it's Jarvis that has suspended the facility. Just the normal market unable to quote an electronic price that I frequently get.

[thrugelmir] 28/7/2023 15:42

Why is T10+ a constraint on trading activity?