Interim Results

Jarvis Securities plc 26 July 2005 Jarvis Securities plc (the 'Company') Interim Results We are pleased to report our interim results to 30 June 2005 and our first since our admission to AIM. Financial Clearly we have been affected by the slowdown in retail stockbroking trade volumes in the second quarter of 2005 with turnover only growing by 1.3%. Together with increased administrative costs our operating profit, excluding the exceptional costs of an aborted acquisition, has fallen by 21%. This is disappointing but we are now well placed to make strong progress in the second half of the year. Commercial Clients During the past six months we have been active in launching a Model B clearing service to settle the trades of other London Stock Exchange members. From a standing start we have been able to obtain the necessary consents, make adjustments to our system to operate this type of business, draft contracts and market our service. We have two clients already live and trading and very strong interest at different stages from more firms with two more due to go live imminently. We expect to be announcing further contract wins throughout the rest of 2005. We have also been experiencing increasing interest in our other outsourced financial administration services, particularly from investment and unit trust managers. We intend to increase our presence in this market. Retail Clients We continue to sign-up retail clients at a very encouraging rate. Our client numbers have grown by around 35% between 2004 and 2005 compared to an average rate amongst our peers of 18.9%. Efficiency We remain highly efficient with staff hours per trade of 0.51 against a competitor average of 0.69 and revenue per £1,000 of staff costs of £4,331 versus a £2,266 average. We are also in the top ten performers in our CREST group despite the large amount of certificated trades that we still handle. This allows us to offer our services to both commercial and retail clients at competitive rates and we appreciate that maintaining and improving this efficiency will be key to our future growth. Outlook There have been improvements in our trading volumes over recent weeks and with the volumes of other firms now being cleared through us at a fee we are in a good position to take maximum advantage of any sustained upturn. We continue to seek out potential acquisitions where we can cut costs and use our efficiency and higher margins to increase profitability. We also continue to actively market both retail and commercial clients and we hope to report more on this over the course of the year. Andrew Grant Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNT (unaudited) For the six months ended 30 June 2005 --------- --------- Six months Six months 30 June 30 June 2005 2004 --------- --------- £ £ TURNOVER 1,275,270 1,258,758 Administrative expenses 945,337 841,331 Exceptional administrative expenses 46,929 - --------- --------- 992,266 841,331 OPERATING PROFIT 283,004 417,427 Tax on profit on Ordinary Activities 105,233 136,710 --------- --------- PROFIT FOR THE FINANCIAL PERIOD 177,771 280,717 Dividends 287,114 175,525 --------- --------- RETAINED (LOSS)/PROFIT FOR THE PERIOD (109,343) 105,192 ========= ========= GROUP BALANCE SHEET (unaudited) As at 30 June 2005 30/6/2005 30/6/2004 -------------------- ------------------- £ £ £ £ FIXED ASSETS Intangible assets 375,012 345,870 Tangible assets 215,615 169,025 Investments - - -------- -------- 590,627 514,895 CURRENT ASSETS Investments 57,215 35,513 Debtors 2,941,268 2,653,777 Cash at bank and in hand 4,302,062 3,405,910 -------- -------- 7,300,545 6,095,200 CREDITORS: Amounts falling due within 6,632,526 6,074,671 one year -------- -------- NET CURRENT ASSETS 668,019 20,529 -------- --------- TOTAL ASSETS LESS CURRENT LIABILITIES 1,258,646 535,424 PROVISIONS FOR LIABILITIES AND CHARGES Deferred taxation 5,492 - -------- --------- NET ASSETS 1,253,154 535,424 ======== ========= CAPITAL AND RESERVES Called up share capital 114,845 100,300 Share premium account 789,834 9,900 Profit and loss account 348,475 425,224 -------- --------- SHAREHOLDERS' FUNDS 1,253,154 535,424 ======== ========= GROUP CASH FLOW STATEMENT (unaudited) For the six months ended 30 June 2005 30/6/2005 30/6/2004 --------- --------- £ £ Reconciliation of operating profit to net cash inflow from operating activities Operating profit 283,004 417,427 Depreciation 38,164 28,187 Amortisation 10,318 4,310 (Increase)/decrease in current asset investments (20,866) 10,969 (Increase)/decrease in debtors 32,976 81,174 Increase/(decrease) in creditors (654,873) (241,293) --------- --------- Net cash (outflow)/inflow from operating activities (311,277) 300,774 ========= ========= CASH FLOW STATEMENT Cash flow from operating activities (311,277) 300,774 Capital expenditure and financial (126,906) (80,370) investment Equity dividends paid (287,114) (175,525) --------- --------- (725,297) 44,879 Financing (10,183) - --------- --------- Increase in cash (735,480) 44,879 ========= ========= Reconciliation of net cash flow to movement in net funds 30/6/2005 30/6/2004 --------- --------- £ £ Movement in net funds in the year (735,480) 44,879 Net funds at 1 January 2005 1,231,041 107,392 --------- --------- Net funds at 30 June 2005 495,561 152,271 ========= ========= NOTES TO THE INTERIM ACCOUNTS 1. Basis of Accounts These unaudited interim accounts have been prepared on the basis of accounting policies set out in the Company's 2004 Annual Report and Accounts. 2. Earnings per Share Earnings per share is calculated as: Per Share Per Share Six months Six months Total 30 June 2005 Total 30 June 2004 ------- ---------- ------- ---------- £ p £ p Profit for the financial 177,771 1.5p 280,717 2.8p period The weighted average number of shares in issue during the period was calculated as follows: Date Event No. of shares Days 2005 2004 ------- ----------------- ------------- ------ --------- --------- 1/1/04 Opening balance 10,030,000 365 - 10,030,000 1/1/05 Opening balance 11,484,545 365 11,484,545 - --------- --------- 11,484,545 10,030,000 --------- --------- 3. Dividends An ordinary dividend of 2.5p per ordinary share was proposed and paid during the period. Contact: Andrew Grant/Mathew Edmett Jarvis Securities plc 01892 700806/700815 INDEPENDENT REVIEW REPORT TO JARVIS SECURITIES PLC Introduction We have been instructed by the company to review the financial information set out in these interim financial statements and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' Responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The continuing obligations of the AIM listing rules require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review Work Performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly, we do not express an audit opinion on the financial information. Review Conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 June 2005. Horwath Clark Whitehill LLP Chartered Accountants 10 Palace Avenue Maidstone Kent ME15 6NF This information is provided by RNS The company news service from the London Stock Exchange

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