Just Group lifts guidance after stellar first half

15th Aug 2023 07:43

(Sharecast News) - Just Group has delivered a bullish outlook for the full year, with the retirement-focused financial services company saying it expects to surpass previous forecasts following a strong first half in which underlying profits surged 154%.

The company said that the rise in interest rates over the past year have had a positive effect on both the Defined Benefit and retail Guaranteed Income for Life markets.

Sales in the first six months of the year more than doubled to £1.9bn, £0.9bn previously, with the DB division seeing 149% growth to £1.4bn.

Underlying profits, now adjusted for new IFRS 17 accounting standards, jumped to £173m, up from £68m the year before. Adjusted pre-tax profit came in at £246m, compared with a loss of £185m.

"We have delivered another impressive set of results and we are highly confident that we will comfortably exceed our 15% profit growth pledge this year," said chief executive David Richardson.

The company declared an interim dividend of 0.58p per share, up 15% on last year.

Looking ahead, Richardson said that current macroeconomic and political uncertainty is expected to have a "negligible effect" on Just Group's business model, as sustained higher interest rates continue to drive demand.

The shares were up 3.7% in early deals on Tuesday at 85p.