Just Group plc (LON:JUST) has announced its results for the year ended 31 December 2024.
David Richardson, Just Group Chief Executive Officer, said:
“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.
Our markets remain buoyant and we are confident in our ability to grow earnings at an attractive rate from this significantly higher level. We remain committed to compounding further growth in shareholder value.
I’d like to thank my talented colleagues who are consistently delivering excellent results and helping a broader range of customers. With a clear purpose and vision, together we’re shaping a brighter future for Just.”
Profitable and sustainable growth
| · | Underlying operating profit1 up 34% to £504m (FY 23: £377m), driven by new business sales growth, higher recurring in-force profit and increased scale. |
| · | Retirement Income sales1 have grown by 36% to £5.3bn (FY 23: £3.9bn). New business margins were slightly lower at 8.7% (FY 23: 9.1%), principally driven by business mix. These combined to drive a 30% increase in new business profits to £460m (FY 23: £355m). |
Strong Solvency II and IFRS
| · | Capital coverage ratio is a robust and resilient 204%2 proforma (31 December 2023: 197%2). The interest rate and residential property sensitivities have further reduced through the cumulative effect of management actions, and as we increasingly diversify the investment portfolio. |
| · | New business strain1 at 1.3% (FY 23: 0.9%) is once again well inside our target of below 2.5% of premium. Cash generation before new business strain is higher at £119m (FY 23: £111m). Our sustainable growth is driven by a low capital intensity new business model, further augmented by management actions and availability of surplus capital. |
| · | Adjusted profit before tax1 was £482m (FY 23: £520m), as strong underlying profit was offset by lower non-operating items. Of this £482m, £369m of profit is deferred to the CSM3 , leaving an IFRS profit before tax of £113m (FY 23: £172m). |
Delivering shareholder value
| · | Improved return on equity1 to 15.3% and tangible net assets per share1 to 254p (FY 23: 13.5% and 31 December 2023: 224p respectively). This is a rapidly growing store of long-term value. |
| · | Dividend of 2.5p per share, 20% growth driven by confidence in the strong fundamentals and future prospects of the business. |
Notes
1 Alternative performance measure (“APM”) – In addition to statutory IFRS performance measures, the Group has presented a number of non-statutory alternative performance measures. The Board believes that the APMs used give a more representative view of the underlying performance of the Group. APMs are identified in the glossary at the end of this announcement and reconciled to IFRS measures in the Business Review.
2 Solvency capital coverage ratios as at 31 December 2024 and 31 December 2023 include a recalculation of transitional measures on technical provisions (“TMTP”) as at the respective dates. The estimated 2024 ratio is presented after the impact of the pre-funded repayment of Tier 3 debt in February 2025.
3 Contractual Service Margin.
For analysts and investors who have registered, a presentation will take place today at 1 Angel Lane, London, EC4R 3AB, commencing at 09:30 am. The presentation will also be available via a live webcast.
| FINANCIAL CALENDAR | DATE |
| Ex-dividend date for final dividend | 10 April 2025 |
| Record date for final dividend | 11 April 2025 |
| Payment of final dividend | 14 May 2025 |
A copy of this announcement, the presentation slides and the transcript will be available on Just Group’s website www.justgroupplc.co.uk.
