LONDON (ShareCast) - (Sharecast News) - FTSE 250 pensions provider Just Group posted a rise in adjusted operating profit for the first half on Thursday but said it was deferring its interim dividend as the outcome of the lifetime mortgage review remains unknown.
In the six months to 30 June, adjusted operating profit was up 85% to £124m, while IFRS pre-tax profit came in at £45.7m versus £66m in the same period last year.

New business profit increased 88% to £121m, driven by strong sales growth and an increase in new business margin to 10.2% from 8.9%.

Just Group said that given the uncertainty surrounding the potential outcomes of the proposed changes to lifetime mortgages by the Prudential Regulation Authority, it will defer its interim dividend.

Chief executive officer Rodney Cook said: "CP13/18 contains proposals which if implemented as outlined, could result in a material reduction in our capital position. This is an open consultation and the outcome remains uncertain. We are, furthermore, in active dialogue with the PRA over many aspects of the proposals contained within the consultation paper.

"We are actively planning for a wide range of outcomes from the consultation process. We have a number of capital management options open to us and in evaluating those will seek to optimise shareholder value."

Numis said the results were "exceptionally strong", with operating profit 13% ahead of consensus. Analyst Marcus Barnard also said the statement takes a "pragmatic" approach to the issues raised by CP13/18 and that the decision to defer the interim dividend "seems sensible".

At 0930 BST, the shares were up 2.6% to 89.45p.

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