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    JRP   GB00BCRX1J15

JUST GROUP PLC

(JRP)
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Brexit hurts Just Group's mortgage sales, shares drop

09/04/2019 | 04:56am EDT

LONDON (Reuters) - Brexit uncertainty is cutting demand for insurer Just Group's mortgage products, its interim chief executive said on Wednesday, as the firm posted a 27% fall in operating profit and said it would not pay a dividend, sending its shares lower.

Just Group, which specialises in annuities for people with a reduced life expectancy, has suffered from new rules from Britain's Prudential Regulation Authority requiring more capital behind lifetime, or equity release mortgages, another of its key products.

Lifetime mortgages enable home-owners to borrow against the value of their property, a loan which is paid back when they die.

"Customers are being put off making major decisions as a result of Brexit uncertainty," David Richardson told Reuters by phone, though he added annuity sales had not been affected by the prospect of a no-deal Brexit.

Shares in the specialist pension provider, which have halved in value this year, dropped 10.5% to 41.5 pence per share by 0755 GMT after it said first-half underlying operating profit fell to 114 million pounds, due to a drop in new business profit.

Just Group announced a discounted share issue in March, raised 375 million pounds in capital, and cancelled its 2018 dividend. It also pushed back its capital breakeven point to 2022.

The company said on Wednesday it would need to increase its capital position by 130 million pounds by the end of 2021 and would not pay an interim dividend.

"Is this the right time to recommence dividends when you are facing into the storm that is Brexit?" Richardson said.

"We think it's much more sensible to revisit the issue of dividend at the full-year results."

Richardson said the firm was taking a number of steps to improve its capital position, including seeking partners to enable it to offer larger deals in the bulk annuity market, which involves insuring company defined benefit, or final salary pension schemes.

Just Group "needs to build confidence in its capital position before the stock can recover", Barclays analysts said in a note, though they reiterated their "overweight" rating on the stock.

(Reporting by Carolyn Cohn, editing by Sinead Cruise and Elaine Hardcastle)

By Carolyn Cohn


© Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
EURO / BRITISH POUND (EUR/GBP) 0.17% 0.85614 Delayed Quote.-3.74%
JUST GROUP PLC 0.78% 97 Delayed Quote.37.70%
MIRAINOVATE CO., LTD. -3.45% 28 End-of-day quote.-6.67%
All news about JUST GROUP PLC
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03/16Just Group plc Reports Earnings Results for the Full Year Ended December 31, ..
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02/08JUST : Peel Hunt Initiates Just Group With Buy Rating, Sets PT
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01/14JUST : Surges 16% On 12% FY20 Revenue Growth, Rosy FY21 Outlook
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2020Just Group plc Announces Result of Tender Offer in Respect of its £230,000,00..
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2020Just Group plc Announces the Purchase Price for Tender Offer in Respect of it..
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2020Just Group plc Reports Earnings Results for the Half Year Ended June 30, 2020
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More news
Financials
Sales 2021 2 798 M 3 846 M 3 846 M
Net income 2021 151 M 207 M 207 M
Net Debt 2021 284 M 391 M 391 M
P/E ratio 2021 8,26x
Yield 2021 -
Capitalization 1 007 M 1 385 M 1 384 M
EV / Sales 2021 0,46x
EV / Sales 2022 0,41x
Nbr of Employees 1 038
Free-Float 98,3%
Chart JUST GROUP PLC
Duration : Period :
Just Group plc Technical Analysis Chart | JRP | GB00BCRX1J15 | MarketScreener
Technical analysis trends JUST GROUP PLC
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 9
Last Close Price 0,97 GBX
Average target price 113,22 GBX
Spread / Average Target 11 572%
EPS Revisions
Managers and Directors
David Louis Richardson Group Chief Executive Officer & Executive Director
Andy Parsons Group Chief Financial Officer & Executive Director
John Peter Hastings-Bass Group Non-Executive Chairman
Giles Offen Group Chief Digital Information Officer
Paul Fulcher Group Executive-Capital Management & Investment
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