JustMar 7 2023

Just’s advice arm contributes to £15mn loss

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Just’s advice arm contributes to £15mn loss
Just Group's chief executive officer, David Richardson, said operationally the company was “exceptionally busy” on a DB transfer front

Retirement firm Just Group recorded a £15.2mn operating loss last year for its non-core businesses, which includes its advice business.

In its full-year results published today (March 7), Just said costs causing the loss arose from the holding company and the HUB group of businesses. 

The group made a similar loss of £15.1mn in this part of the business the previous year.

Just bought 75 per cent of HUB Pension Consulting Limited back in 2018, before buying the remaining shares in September 2021.

The advice arm includes HUB Financial Solutions Limited, as well as the digital service Pension Buddy which launched a financial wellbeing service to help savers last year.

Just said the HUB operating segments “are not currently sufficiently significant to separate” out in its results.

The group also said it has been investing in its ‘HUB Destination Retirement’ business in particular, the financial advice shop front of HUB Financial Solutions Limited. 

This has seen management expenses increase by 4 per cent, to £153mn compared with £147mn the previous year.

Across the rest of the business - which covers defined benefit pension sales and lifetime mortgages - Just recorded an underlying operating profit of £249mn, up 19 per cent on last year.

Though its loss after tax was £232mn, driven by losses on interest rate hedges to protect the solvency of its balance sheet.

Group chief executive officer, David Richardson, said operationally Just Group was “exceptionally busy” as it completed 56 DB transactions, almost double the 29 it did in 2021.

Defined benefit sales were also up 33 per cent to £2.6bn (2021: £1.9bn).

“We have had a record start to the year with strong DB volumes and a return to GIfL [guaranteed income for life] sales growth,” said Richardson.

“We have significant long term opportunity in both of the DB and retail markets, driven by near and long term structural growth drivers.”