Jarvis Securities to sell brokerage business for up to £11m

LONDON - Jarvis Securities plc (AIM: JIM), a UK-based financial services group, announced today the conditional sale of its retail execution-only brokerage business to Interactive Investor Services Limited for a consideration of up to £11 million in cash. The transaction is expected to be completed by early July 2025, and it marks a significant shift in Jarvis’s strategic direction.

The sale involves the majority of Jarvis Investment Management Limited’s (JIML) execution-only brokerage operations, which includes the "X-O" and "Sharedeal Active" brands. As of April 14, 2025, the assets under administration (AUA) for this segment of the business stood at approximately £1.265 billion (unaudited). The consideration for the sale is structured in three tranches, with £9 million due on completion, and two subsequent payments of £1 million each at approximately 12 and 18 months post-completion.

Completion of the sale is subject to certain conditions, including the maintenance of at least 90% of the AUA and customer numbers from the date of the agreement. If these conditions are not met, Interactive Investor has the option to either extend the migration period or terminate the agreement. Jarvis’s directors, however, have expressed their expectation that the transaction will complete as planned.

Following the sale, Jarvis will focus on winding up its Model ’B’ clearing and settlement services and closing down other operations, a process that is anticipated to take around 15 months. As a result of the agreement, JIML has agreed with the Financial Conduct Authority (FCA) not to take on new clients.

The proceeds from the sale are intended to support the group’s general working capital, and any excess may be returned to shareholders. After the completion of the transaction and the termination of Model ’B’ arrangements, Jarvis will no longer conduct any trading business and will become an AIM Rule 15 Cash Shell. The directors are currently not planning any acquisitions and are considering seeking cancellation of the company’s admission to trading on AIM, with the potential return of distributable reserves to shareholders.

This strategic move comes as Jarvis evaluates its future viability and seeks the best outcome for the group and its clients. The company will make further announcements as the transaction progresses. This information is based on a press release statement.

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