Are there any Jarvis Securities clients on here

8th Mar '23 by ISAallowance

3 comments 354 reads

As per the title, are there any Jarvis Securities clients on here. If so, could you please tell us whether you receive any interests on your deposits following the recent rate cycle hike?

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ISAallowance

Premium Member

3 comments

sharw

8th Mar '23

I use xo (part of Jarvis) and the answer is no. I also have an a/c with ii and yes:

ISAallowance

8th Mar '23

Thanks for the reply. FWIW, I've opened a small position in Jarvis Securities (LON:JIM) based on the thesis that current earnings estimates do not fully reflect the expected interest earnings on client deposits.

abtan

8th Mar '23

Jarvis Securities (LON:JIM)

I have quite a large position here precisely because I think the interest income is being overlooked.
x-o state this in their T&Cs:

"Interest accrued on sterling Account Money not immediately committed for investment shall be calculated monthly at 1% below the published HSBC standard current account rate"

I found zero interest being paid on the HSBC standard accounts, which looked odd.
So I messaged HSBC and they confirmed this was correct.
In theory therefore, no interest should be being paid to customers right now.
Even if HSBC increased their standard account interest rate to 1%, Jarvis would still pay zero out to customers.
I would hope that Jarvis Securities (LON:JIM) are therefore receiving net interest somewhere between 3.0% and 4.0%.
The cash balance at the end of H1 2022 should have been £330m (calculated forward from the 2013 interim report - thank you again to the person who posted that!)
I am prudently assuming that this dropped to £300m at 2022 Year End with a rise to £320m by the end of this year i.e average FY23 balance = £310m
£310m * 4% = £12.4m interest income in FY23.
For context the interest income in FY21 was £4.5m.
The current Market Cap = c£70m, so I think that the interest income alone justifies a much higher re-rating...assuming the FCA find nothing from the audit currently taking place. Nothing yet.

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Are there any Jarvis Securities clients on here

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ISAallowance

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