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BUSINESS UPDATE FOR THE PERIOD ENDED 30 SEPT 2017

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RNS Number : 1533V
Just Group PLC
01 November 2017
 


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


This information is provided by RNS
The company news service from the London Stock Exchange
 
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