Shares in JRP Group PLC (LON:JRP) were rallying 17% higher Tuesday Morning after its first set of financials since its April merger showed a boost to profits.
The retirement services group, formed of Just Retirement and Partnership, saw pre-tax operating profit of £50.6mln in the first 6 months of the year.
It has also set aside £5mln to cover redundancies following the merger as part of an on-going cost-cutting effort.
In a scheme document sent to shareholders last year, Just Retirement said it would cut 5% of the 1,200 jobs at the merged company in the first six months of the deal, with another 10% to 15% over the subsequent two years.
The newly merged group said it had increased its savings target from £40mln to £45mln by 2018.
Following the merger, it managed to achieve £15mln of annual savings from the deal in the period, offsetting £15.9mln acquisition costs reported in the results.
Including Partnership’s sales, the group recorded total new business sales of £948.7mln. In the same period last year the two companies together would have recorded new business sales of £922.6mln.
Sales in lifetime mortgages resulted in the biggest increase in sales for the group, representing £321.8mln in the first half, 57% higher than recorded before the merger. The group’s also new business margin improved, reaching 5%.
“We are successfully adapting our business model to the new capital environment. The combination of increased margins, synergy delivery and a current coverage ratio of 134%, together with low gearing, gives us confidence in the long term growth prospects of the group,” said chief executive Rodney Cook.
Shares were up 17% to 114p.