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Shares in Jarvis Securities PLC were down on Thursday as it posted a decline in both revenue and pretax profit during the first six months of the year.
Shares in the Royal Tunbridge Wells, Kent-based stockbroking and administration services provider were down 15% to 164.75 pence each in London on Thursday around midday.
Jarvis reported that revenue in the six months ended June 30 was down 77% to £1.9 million from £8.1 million the year before. On the back of this pretax profit also fell by 67% to £1.5 million from £4.6 million.
It added that earnings per share also decreased by 33% to 5.62p each from 8.45p year-on-year.
Jarvis said: ‘During the period under review share trading volumes and the IPO market have decreased significantly compared to last year which had record levels being recorded, resulting in lower commission and fee income.’
It added that inflationary pressures coupled with geopolitical uncertainty in Ukraine ‘dashed any hopes of a speedy market recovery’.
Further, Jarvis said that increases in the costs charged by suppliers have created a further uplift in expenses, notably in compliance where the regulatory standards required of financial service companies are becoming ‘more complex’.
However, the company said that the increase in the base rate by the Bank of England to counter the climbing inflation rate have been ‘swifter’ than forecasted. It added that maturing deposits are being replaced at higher rates and the impact of this should be felt in the second half of the year.
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