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barchid thanks
thank goodness for Google but usual for the finacial industry. They can't put anything in plain english!
Opti
Google "fca skilled person" and it gives you the answer which is way too involved to put on this BB, but one is used if the FCA are unhappy with something or need clarification on a matter.
I am not in this share but they are my broker via X/O I have no concerns about that. However this is an odd RNS
What actualy is a skilled person, far too ambiguious?
Clarity is needed.
Good luck all
Mala
I think you are correct, but this is AIM so I wouldn't bet the farm on it...
Until we have further clarification as to the actual issue and the fix for it one has to be aware that this company had an impeccable reputation for efficiency in handling other companies accounts, compliance etc, and that reputation is, until we have these details, somewhat tarnished.
I think we’re seeing profit taking this morning. I certainly hope that’s what it is, as I have bought more at 112p.
This is a fundamentally sound business. It has got to be a good long term investment.
This morning I bought 10,000 shares at 107.00 and then a further 1998 at 108.5. I’m still heavily down on my large holding , but the trend is in the right direction, the dividend is soothing, and I’m assuming the shares are exempt from iht. As I’m 80, this is a highly relevant factor for me.
Well done on the golf, & on JIM !
Sadly my bottom fishing was a bit higher than yours at 111, but I have left a limit on which is close but not triggered yet so I'll have to hurry up & wait.
I concur re the lack of posts after this movement, I guess rising markets generate more noise on BB's than a dismal RNS !
Hi barchid,
Thanks…Yep happy days 2nd on countback with 39pts!
Just logged in and sold my JIM’s for 20% profit!
I thought there would be more clarity today but not yet. Couldn’t t resist banking the winnings as can always have another go later if it drifts back. If not I don’t mind paying more for surety if divi is ok.
From 120 I think 110 is as likely as 130 so decided to cash out.
Good luck whatever you decide. I am amazed that there are so few posters here especially after that news!
Usual caveats
Trek
Trek
I trust your golf went well ?
On a more serious note, given that hindsight is 20/20, if you look at the 3 month historic chart it does look as though some people could have been aware of an imminent issue from the start of July, especially when you see some of the volumes.
Just thinking out loud...
Hi barchid,
My money is on an RNS Tuesday, pity I will be golfing early so won’t be able to sell into any spike but like you I think it will pull back up from here.
On a fourth read I think they have a systems compliance issue. Sometimes it can just be a naming convention or could be a regulatory process. That to me seems more likely than loosing an account.
There’s a guy on site going through it all. Probably looking for a fix but in the meantime JIM can carry on but if there is an activity that conflicts with their regulatory process they run it by the FCA for transparency.
Remember MiFID2 on the LSE. All the upgrades etc. Its possibly a conflict along those lines. The regulatory process is very complex for these trading companies.
As it’s intimidated it’s one person and a timescale is indicated 3-6 months…
“ JIML will continue to work with the Skilled Person and FCA with the aim of having the restrictions lifted as soon as possible”
It indicates it’s resolvable, probably software so no big expenditure or hardware outages.
I get the ‘brand impact’ but when it’s done it could be a positive. I mean I would be left wondering what it’s all about if I held HL, CMCX, AJB etc… I wouldn’t be surprised to see others spooked if/when more is known.
It’s likely they would withhold the divi until an outcome is known. But if as Monty says they self reported there may not even be a fine. As I said the FCA’s aim is compliance not necessarily fining.
Anyways all guess work for now…
Usual caveats
Trek
We don't know what the issue is but for an independent expert to be appointed there may have been a discovery of missing assets; books show an asset but it was not there when physically 'looked for'.
I always thought of Jarvis as extremely well run and efficient. I suppose it is possible that formal controls were not applied sufficiently rigorously - a bit too tough on the overhead.
IMV It is quite likely the issue was discovered by the management and reported to the FCA (hence they became aware!) and the "Skilled Person" (SP) agreed with them (probably a bit less expensive than PWC or KPMG). Clearly no-one will make any formal statements of what occurred until the SP reports. That is why the dividend may be under threat, depending on how much available liquid assets, if any, have been lost. If it turns out to be small, and control is easily implemented, the the FCA will likely allow it on the recommendation of the SP. If the loss is material, perhaps not this time.
For me it is disappointing, but a 40% drop looks too high unless the solvency of the whole business is under question. Even if it requires a new cash injection, there should be value in a business that has been producing such a large return on capital and healthy dividends over the years. But it would be a bad time in the cycle to be looking to refinance.
So I'm sitting tight and awaiting the outcome.
My average comes out at 98p! That’s a yield of 12.23%! Lol!
I will be delighted if it stays at 98p and amazed if the 12p divi (3p quarterly) is held but you never know. I am getting over 10% at DEC. It does happen!
Nothing ventured….
Usual caveats
Trek
Trek
I just bought some at 111p on the same premise as you, it is most odd as the company is tightly run by the family, but this is a reputational issue now, no question.
But everything has a price...
From the website client B is clearing…..
“ Since launching our Model 'B' Clearing and Settlement Service in March of 2005 we have developed relationships with several leading IFAs, Stockbrokers, Asset Managers, Investment Companies, Building Societies and Banks.”
Anyways that was fun I grabbed nearly 6k worth. You actually couldn’t buy a set number of shares on ii it would only take cash.
I bought in three lots, 99p no surprise there! 92p and 94p as it bounced.
I figure the company will draft a statement over the weekend and then when folk think it’s an overreaction I will sell them again. Well that’s the plan!
Can always grab em back later.
I think at worse is a fine of sorts or a systems change. But the FCA’s role is to help not fine unless it’s deliberate obfuscation. I have had dealings with them before.
This could prove to be an opportunity or not but a 50% drop seems well overdone. It’s not exactly a duster! Lol!
Usual caveats
Trek
Could it be some account(s) that their subsidiary manages that the FCA might be interested in?
Does anyone know what's going on?
From website….
Quality of Service
Jarvis position themselves at the most competitive end of the market on price but appreciate that service is the driver for long term success. Jarvis has grown mainly through recommendation, are multi-award winners and our customer-centric culture is underpinned by our Customer Charter.
Compliance
Jarvis has an excellent compliance record dating back to the foundation of the firm in 1984 and are committed to the highest standards of regulatory compliance, complaint handling and Treating Customers Fairly.
Security
The Financial Services Compensation Scheme protects customers who hold their assets with Jarvis. All stocks are held in a separate nominee company, as required by the FCA, and cash is deposited with Approved Banks in designated pooled accounts. All requests to transfer client cash and stock are subject to robust controls. We recognise that one of the most important responsibilities to all our clients is to ensure the safety and security of the assets entrusted to us. With this in mind we have put in place a professional indemnity insurance policy with a major third party insurer to provide the maximum level of cover.
Trek
Trek
I have carefully read this rns 4 times and I still can't understand the dividend thing, one point to bear in mind though is that this company always had an impeccable reputatation in management but this seems to have been a serious slip up on that front.
To be given a tug by the fast asleep FCA is something even Woodford has avoided, so why JIM ?
But even if this is sorted out swiftly the reputational damage is, imho, serious.
However at the current price an unchanged divi is a pretty high yield, and the family like those divi payments like we do (did?).
Who knows ?
What a **** show
Are the divi’s impacted yes or no?….
“These voluntary restrictions do not prevent JIML providing services to current clients and paying its ordinary expenses and commissions; nor do they directly restrict any payment of dividends by the Company.”
Directly restrict so they do indirectly??
Then…..
“ The additional professional fees and associated costs, and the asset restriction, however mean dividends payable to the Company (and therefore dividends payable by the Company) may be reduced and/or delayed pending FCA approval.”
Is that a may be or won’t be….
Terribly worded RNS…
Folks will assume the worse. But at least it’s near 3 months to the next divi whatever it may or may not be!
It could be worth trying to catch the bottom as this looks a finite regulatory thing but wtfdik!
Usual caveats
Trek
Well I've gambled on a big top-up. People forget how much money they have made from good old JIM over the years.
Obviously a lot of people have been "in the know" for some time.
Audentes fortuna iuvat.
Yep I got out just in time. Had sold most anyway but had to send the last to market at best but got 157 ish.
I am not sure if the impact that this could have on new customers. Have read RNS twice it seems pretty vague as numbers are an unknown so have bailed. Will watch from sidelines.
Usual caveats
Trek
This afternoon's rns has been less than helpful...
Well done for adding. I am a seller at 200 though. May be a tad earlier dependent on volume.
This one is following rates higher but as always things don’t keep going up.
In at 157 and looking to get out at 200ish with a divi in the bag is a good return.
Will then come back for another run!
Usual caveats
Trek
On basis of the dividend, and recent SP strength, I have just doubled my holding in JIM, as a long term hold.
Already difting upwards. Is an increase of 75bps in the base rate on the cards?