Retirement financial specialist Just Group has soared past expectations with an underlying operating profit of £249m, 20 per cent ahead of consensus and up 44 per cent from last year.
In the firm’s interim results for the period to 30th June, it reported sales of retirement income products had totalled £2.5bn, 30 per cent up from last year and 12 per cent higher than analyst expectations.
The surprisingly strong results have shocked analysts, leaving momentum firmly in the sails of the retirement group, as adjusted profit before tax came in at £267m
“Given the strong first half outcome, the positive market dynamics, and our forward-looking pipeline, we expect to substantially exceed previous 2024 guidance of doubling 2021’s £211m operating profit in three years,” Just Group CEO David Richardson said.
However, the group warned that despite the roaring success in the first half of the year, the second half may see a “slight” moderation due to more large deals in the pipeline.
RBC analysts Mandeep Jagpal and Dawid Pych said Just Group “has continued its strong momentum.”
The analysts upgraded their expectation of underlying operating profit growth for the year by 11 per cent. RBC also hiked its target price from 165p to 175p.
The group’s stock price currently sits at 114p. It has returned 35 per cent since the beginning of the year.
Jagpal and Pych were also keen to note Just Group offered “double-digit growth at a 50 per cent discount to the peer group”, as well as its small market share and focus on the sub-£100m market segment, leaving them less materially impacted by sector headwinds.
CEO Richardson added: “We are delighted with the strong momentum in our business driven by the multiple opportunities available and structural growth in our chosen markets. Our DB and retail businesses both contributed to this excellent performance, reflecting our continuing investment in technology and talent.”
“We have never been more confident in our ability to deliver sustainable and compounding growth. We have a growth mindset and we’ve developed a winning formula – one which will ensure we fulfil our purpose, to help people achieve a better later life. This formula is delivering sustained growth in the value of the business.”