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Jarvis Securities PLC on Tuesday reported a widened full-year loss as it noted one unit will need to pay a redress to some clients for breaching the UK financial watchdog’s code of conduct. Shares in Jarvis plummeted 26% to 12.65 pence on Tuesday morning in London. The operator of retail stockbroking brands said pretax profit fell 43% to £3.0 million for the 18 months to June 30, from £5.2 million achieved in calendar year 2023. The company changed its financial year-end to June 30 from December 31. This was despite revenue rising 37% to £17.9 million in the 18 months from £13.1 million in the 12 months of 2023. The bottom line was weakened by increasing administrative expenses, which jumped 66% to £17.9 million from £13.1 million. Exceptional administrative expenses more than tripled to £4.1 million from £1.3 million. This included ‘significant’ internal and external remediation costs and legal fees relating to the sale of its retail business, as well as provisions for redress. On Tuesday, Jarvis said its subsidiary company, Jarvis Investment Management Ltd, had incurred an obligation to provide redress to certain clients following historic breaches of the UK Financial Conduct Authority’s conduct of business rules. JIML estimates it will incur a liability of around £2.8 million over the next year. The first breach is related to the sharing of commission with an introducer, and the second breach regards ‘unclear and potentially misleading language in legacy versions of the JIML client terms of business when describing the rate and circumstances in which interest would be paid on client money held,’ Jarvis said. In July 2025, the firm completed the sale of its retail client book, gave notice to all corporate clients, and began winding down the remaining business. Jarvis said it does not intend to make any acquisitions and, while it is reviewing strategic options, is currently seeing a cancellation of its admission to trading on AIM in due course. ‘The board of Jarvis Securities is committed to delivering an effective and efficient wind-down of JIML and it has now appointed S&W Partners LLP (S&W) to monitor this objective on its behalf,’said Chair Andrew Grant. ‘The directors believe a professional independent firm with extensive experience in the wind down of regulated entities will be better placed to challenge and advise and will be in the best interests of clients and shareholders. JIML is continuing to deliver the wind-down and clear the remediation tasks, therefore costs remain significant at this time.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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