Jarvis Securities Reports Interim Results Amid Wind-Down, Plans AIM Delisting

Jarvis Securities interim results: profit on paper, wind-down in practice

Jarvis Securities has posted interim numbers for the six months to 31 December 2025 that show a statutory profit, but the story is entirely about the ongoing wind-down and the sale of its retail client book. If you’re holding the shares, the destination is capital return and (likely) AIM delisting, not a trading turnaround.

Key numbers investors should know

Revenue	£1,586,257 (down 74.6% year-on-year)
Exceptional items	£10,255,194 (mainly sale proceeds)
Profit/(loss) before tax	£7,367,910 (vs a £422,076 loss)
EPS	12.27p (vs (0.69)p)
Cash and cash equivalents	£10,541,754
Provisions (redress)	£3,050,681
Dividends paid in period	2.90p per share (£1,297,198)
Deferred consideration due	£1m in July 2026 and £1m in January 2027 (discounted at 8%)

What drove the swing to profit

The reported profit is almost entirely due to “exceptional items” from the sale of Jarvis Investment Management Limited’s retail execution business. Jarvis received £9.0 million on completion on 7 July 2025 and expects a further £2.0 million in deferred payments, which have been discounted to present value. That produced £10,816,899 of exceptional income, netted against a £342,872 write-off of goodwill and a £218,833 increase in provisions.

Strip those out and underlying performance is weak, as you would expect in a wind-down. The Chairman flags a £4,661,543 decline in non-exceptional revenue and a £3,006,913 increase in the loss before tax on the same basis versus the prior period. Interest income has fallen as client money balances shrink – and is expected to keep falling as the book runs off.

Wind-down status and why it matters

Jarvis is not preparing accounts on a going-concern basis. In plain English: management’s plan is to shut down remaining operations, realise assets, settle obligations and return surplus cash to shareholders. Under IFRS 5, assets are being treated as held for sale and non-current items have been reclassified as current. There was a full write-down of goodwill (£342,872).

Crucially, Jarvis Investment Management Limited (JIML) remains under a voluntary restriction agreed with the FCA (VReQ) and cannot pay dividends up to the PLC. That gating item means the pace of any capital return depends on JIML completing its own wind-down and releasing cash.

Cash, reserves and dividends in context

Group cash rose to £10,541,754, helped by the £9.0 million cash receipt from the sale. Retained earnings increased to £8,266,559 after recognising the exceptional profit, even after paying dividends of 2.90p in the period. The Board says it will continue to review the ability to pay dividends quarterly, but remember the subsidiary-level restriction – distributions rely on cash and reserves within the PLC, not JIML.

There is also a property asset earmarked for sale, carried at £333,326. The Board is “looking at realising value from the remaining Group assets including the sale of its only property interest”.

Regulatory redress provisions: what’s in the £3.1 million

Provisions rose to £3,050,681. They comprise:

• Redress for a historic breach of inducement rules – an additional £16,760 booked in the period.
• Interest due to customers who previously held client money – an additional £202,073 booked.

Management says the methodology is complex, terms of the redress scheme are not yet final, and engagement with the FCA continues. The expected cash outflow is within one year. The company warns that outcomes could differ from current assumptions, which could mean a material adjustment to liabilities in the next financial year. In short: this is still a moving target.

AIM delisting and potential return of capital

The Board still intends to seek cancellation of trading on AIM under Rule 41, subject to shareholder approval, though it is keeping options open. The expectation remains that any remaining distributable reserves at the time of cancellation would be returned to shareholders. Timing depends on JIML’s wind-down and upstreaming of any remaining cash, plus disposal of remaining assets.

Positives and negatives at a glance

• Positive – Cash boosted by the £9.0 million completion payment; further deferred cash due of £2.0 million (discounted at 8%).
• Positive – Clear plan to realise the final assets, including the property, and simplify towards capital return.
• Negative – Underlying revenue has collapsed to £1.59 million and the underlying PBT is a deeper loss.
• Negative – FCA-related redress remains uncertain in size and timing; provisions could move.
• Negative – JIML remains restricted from paying dividends to the PLC, which may slow distributions.

How I’m reading this for shareholders

This is a wind-down story with a cleaner balance sheet and more cash following the book sale. The headline profit is not a sign of ongoing profitability – it is the accounting of disposal proceeds. The investment case, such as it is, rests on the size and timing of final cash receipts versus outflows for redress, tax (the interim tax rate is 25%), leases and any residual wind-down costs.

The two deferred consideration payments – £1 million in July 2026 and £1 million in January 2027 – are helpful waypoints. So is the planned sale of the remaining property interest. On the flip side, the redress scheme and FCA engagement introduce uncertainty, and the VReQ restriction at JIML keeps a handbrake on moving cash to the PLC until the finish line.

What to watch next

• Confirmation of the detailed redress scheme terms and any changes to provisions.
• Progress on disposing of the property and other residual assets.
• Formal timetable for the AIM cancellation and any accompanying proposals for returning capital.
• Receipt of deferred consideration and any tax impacts.
• Updates on the VReQ position at JIML and the ability to upstream cash.

Bottom line

Jarvis has turned in a statutory profit thanks to the sale of its retail client book, but the underlying business is being wound down and revenue is melting away as intended. The key questions now are how much cash makes it back to shareholders and when. Until the redress bill hardens and JIML completes its wind-down, expect timing uncertainty – but with £10.5 million of cash on hand and more to come from deferred consideration and disposals, the path to an orderly exit remains intact.