Last checked at 1 Nov 2017 07:00
NEWS RELEASE | www.justgroupplc.co.uk |
1 November 2017
JUST GROUP plc
BUSINESS UPDATE FOR THE PERIOD ENDED 30 SEPTEMBER 2017
CONTINUED PRICING DISCIPLINE, FURTHER COST SYNERGIES
Just Group plc1 ("Just", "the Group") announces a business update for the period ended 30 September 2017.
Highlights
· | Total Retirement sales for 9M 17 were 1% lower than the pro forma2 nine month comparative figure as we continue to focus on profit growth. Statutory basis total sales rose 3% from £1,583m in 9M 16 to £1,631m in 9M 17 |
· | Guaranteed Income for Life (GIfL) 9M 17 sales were broadly flat, but with sales continuing to benefit from individual customers transferring from defined benefit pensions to a drawdown and GIfL mix |
· | Defined Benefit De-risking sales of £564m in 9M 17 were broadly in line with pro forma 9M 16 |
· | 9M 17 Lifetime Mortgage (LTM) advances of £367m amounted to 30% of Retirement Income sales, as we continue to optimise matching |
· | Merger cost savings now exceed the £45m revised target run rate and remain a key element of delivering a better return on equity across the business. |
Just Group new business3 | 9 months to 30/09/17 | Pro forma 9 months to 30/09/16 | Change | Statutory 9 months to 30/09/16 |
£m | £m | % | £m | |
Defined Benefit De-risking | 564 | 578 | (2) | 578 |
Guaranteed Income for Life | 607 | 604 | 1 | 527 |
Care Plans | 52 | 78 | (33) | 62 |
Retirement Income sales | 1,223 | 1,260 | (3) | 1,167 |
Drawdown | 37 | 15 | 148 | 15 |
Total Retirement sales | 1,260 | 1,275 | (1) | 1,182 |
Protection | 4 | 4 | 11 | 3 |
Lifetime mortgage loans advanced | 367 | 465 | (21) | 398 |
Total new business sales | 1,631 | 1,743 | (6) | 1,583 |
Rodney Cook, Group Chief Executive, said:
"Our focus on margin rather than volume continues to deliver profit growth. This disciplined pricing approach and further progress in achieving cost synergies mean margins and IRRs4 continue to improve. The group's return on equity will benefit as a result, and we remain on track to deliver a sustainable capital model. Our successful focus on sustainable growth in attractive markets gives us increasing confidence of delivering on full year expectations."
New business sales by quarter (£m, Pro forma)
3 months to: | 30 Sep 2017 | 30 Jun 2017 | 31 Mar 2017 | 31 Dec 2016 | 30 Sep 2016 | 30 Jun 2016 | 31 Mar 2016 |
Defined Benefit De-risking | 269 | 170 | 125 | 365 | 414 | 121 | 43 |
Guaranteed Income for Life | 217 | 216 | 174 | 174 | 207 | 234 | 163 |
Care Plans | 18 | 17 | 17 | 19 | 20 | 29 | 29 |
Retirement Income | 504 | 403 | 317 | 559 | 641 | 384 | 235 |
Drawdown | 14 | 11 | 12 | 10 | 9 | 4 | 2 |
Total Retirement sales | 518 | 414 | 328 | 569 | 650 | 388 | 237 |
Protection | 1 | 1 | 2 | 1 | 2 | 1 | 1 |
LTM loans advanced | 137 | 124 | 107 | 95 | 143 | 173 | 149 |
Total new business sales | 656 | 539 | 436 | 665 | 795 | 562 | 387 |
Notes
1. The company changed its name from JRP Group plc to Just Group plc at the AGM on the 18th May 2017.
2. The merger of Just Retirement and Partnership is required for accounting purposes to be treated as an acquisition by Just Retirement of Partnership with an effective date of the beginning of April 2016. Accordingly, the statutory comparative information includes 9 months of sales by Just Retirement but only 6 months by Partnership. Pro forma sales are presented as though the merger took place at the beginning of January 2016, in order to give a better understanding of the merged Group.
3. Numbers in table subject to rounding.
4. IRR: Internal Rate of Return
Enquiries
Investors / Analysts
James Pearce, Director of Group Finance
Telephone: +44 (0) 7715 085 099 james.pearce@wearejust.co.uk
Paul Kelly, Investor Relations Manager Telephone: +44 (0) 20 7444 8127 paul.kelly@wearejust.co.uk
|
Media
Stephen Lowe, Group Communications Director
Telephone: +44 (0) 1737 827 301 press.office@wearejust.co.uk
Temple Bar Advisory Alex Child-Villiers William Barker Telephone: +44 (0) 20 7002 1080 |
FINANCIAL CALENDAR
| DATE |
Lifetime mortgage seminar | 23 November 2017 |
Results for the year ended 31 December 2017 | 15 March 2018 |
A copy of this announcement will be available on the Group's website www.justgroupplc.co.uk
JUST GROUP PLC
GROUP COMMUNICATIONS
Vale House, Roebuck Close
Bancroft Road, Reigate
Surrey RH2 7RU