Just Group PLC shares sank over 13% on Friday despite seemingly strong results showing it had hit a target to double profit two years early.
Underlying operating profit surged 34% to £504 million in the year to December 31, the retirement specialist said on Friday.
New business sales growth and higher recurring in-force profit were attributed for the increase, which was coupled with a 20% hike to its dividend to 2.5p a share.
“We made a pledge three years ago to double profits over five years,” chief executive David Richardson said, “we have significantly exceeded that target in just three years”.
The increase meant FTSE 250-listed Just Group, which specialises in annuities, had exceeded expectations for profit of £499 million.
“Our defined benefit and retail businesses contributed to this excellent performance, and both are operating in markets that are benefitting from long-term structural growth drivers,” Richardson added.
However, profit taking appeared to take hold in the wake of the results, as shares tumbled 13.8% to 140.64p.
JPMorgan and RBC analysts reiterated 'overweight' and 'outperform' ratings respectively after the update, as the likes of Panmure Liberum also repeated backing.
Jefferies analysts flagged the only issue was a slightly below-consensus tangible net asset value of 254p a share.
Panmure also flagged no new targets had been set, but forecast "strong double-digit performance to continue".