Jarvis Securities Plc (AIM:JIM) fell 18% on Thursday morning after warning full-year trading would be “significantly” below market expectations as a regulatory review goes on.
Alongside “subdued trading volumes,” increasing costs of the skilled person review into subsidiary Jarvis Investment Management and related remediation had hit trading, the company said in interims on Thursday.
These showed a 12% fall in revenue to £6.4 million over the six months to June, alongside a 29% reduction in profit to £2.0 million.
Jarvis noted that a review of its remediation efforts by the skilled person on behalf of the Financial Conduct Authority was now underway.
However, restrictions on Jarvis Investment Management’s clearing and settlement business remain in place, the company added, amidst the review into its regulatory controls.
Shares fell 18% to 48p.