Just Group doubles profit two years ahead of schedule

(Sharecast News) - Just Group shares snapped violently lower at the end of the week, after the financial services group reported full-year profits that fell short of analysts' estimates by a wide margin. For over 2024, Just Group said that its adjusted pre-tax profit fell by 7.3% to reach £482m, a result that it attributed to lower non-operating items.

Group chief David Richardson however stressed the positives, saying: "We made a pledge three years ago to double profits over five years.

"We have significantly exceeded that target in just three years and created substantial shareholder value as a result."

Underlying operating profit on the other hand was ahead by 34% to £504m.

Management cited new business sales growth, higher recurring in-force profit and more scale.

The company's total dividend per share rose by 20% to 2.5p, thanks to a 1.8p final pay-out.

"Underlying operating profit was broadly in line, but represented growth of 34% yoy, while the 20% DPS growth and 204% SII ratios were both ahead of consensus," analysts at RBC said in a research note sent to clients.

"We remain constructive on JUST's growth outlook, and updating our model for results supports incremental underlying operating profit upgrades of 2%/3% for FY25/26, with a corresponding increase in our PT to 200p (from 190p). Reiterate Outperform."

As of 0910 BST, shares of Just Group were trading 15.32% lower at 138.20p, having been knocked down from their seven-year highs.