Just Group PLC (LSE:JUST) climbed over 13% to a five-year high on Tuesday after reporting a spike in first-half underlying profit.
New business sales growth, higher recurring earnings and improved efficiency led a a 44% increase in underlying operating profit to £249 million, the retirement product specialist reported.
This came as retirement income sales climbed 30% to £2.5 billion over the six months to June and margins ticked up from 8.5% to 9.0%.
“We have never been more confident in our ability to deliver sustainable and compounding growth,” chief executive David Richardson commented.
Just Group added second half new business volumes would “be similar to the excellent performance in the first half,” as strong market conditions persist.
Peel Hunt analysts noted the new business growth and profit had come in ahead of expectations, adding the group was enjoying “strong momentum”.
Analysts dubbed the stock a ‘buy’ and set a share price target of 150p - up 28% on Monday’s close.
Shares climbed 13.4% to 133.14p.