Just Group PLC (LSE:JUST) released its first-half 2025 financials on Thursday, revealing a mixed performance as sales dropped 13% and pre-tax profits fell 12%, missing analyst forecasts by 16%.
The retirement income provider, which recently agreed to a takeover deal, experienced a 13% sales decline across both its retail annuities and bulk business segments. Notably, the bulk segment saw lower revenue despite an increased number of transactions, suggesting smaller average deal sizes.
The shortfall in profits was largely due to “higher CSM transfers from the profit and loss account linked to revised future cash flow assumptions,” the company explained.
On a brighter note, organic capital generation grew 12%, surpassing consensus estimates by 104%. However, this was mainly driven by management initiatives that contributed about five times more than anticipated, while the underlying cash flow increased by just 9%, falling slightly short of expectations by 2%.
New business margins came in at 7.5%, missing forecasts by 0.7 percentage points, and the Solvency II capital coverage ratio stood at 198%, 3 points below the consensus estimate.
Other performance indicators showed a mixed bag: retirement income sales outperformed forecasts by 1.0%, defined benefit sales exceeded estimates by 1.6%, while Guaranteed Income & Life (GIfL) and Care sales fell short by 0.8%.
Dividends per share were in line with market expectations, and tangible net asset value per share met consensus projections.
Given the recent takeover announcement, the market impact of these results is expected to be limited as the company prepares for the transition to new ownership.
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