Just Group PLC on Tuesday predicted full-year operating profit would ‘substantially exceed’ previous 2024 guidance.

Chief Executive David Richardson said: ‘We have never been more confident in our ability to deliver sustainable and compounding growth.’

‘Given the strong first half outcome, the positive market dynamics, and our forward-looking pipeline, we expect to substantially exceed previous 2024 guidance of doubling 2021’s £211 million operating profit in three years,’ he continued.

In response, shares leapt 13% to 133.20 pence in London on Tuesday. It was the best performing stock in the FTSE 250 which was up 0.1%.

The Surrey, England-based financial services firm provides retirement income products and services to individual and corporate clients.

In the six months to June 30, Just Group said pretax profit fell 37% to £74 million from £117 million.

Underlying operating profit, in contrast, rose 44% to £249 million from £173 million. This was driven by new business sales growth, higher recurring in-force profit and operational gearing.

Retirement income sales increased 30% to £2.47 billion from £1.90 billion.

Just Group said pricing discipline and risk selection in ‘buoyant’ markets led to an increased margin of 9.0% compared to 8.5% a year ago. These combined to drive a 38% increase in new business profit to £222 million from £161 million.

Looking ahead, the firm said momentum remains ‘strong as we enter the second half of 2024’.

‘We forecast second half new business volumes to be similar to the excellent performance in the first half, albeit with slightly lower margins due to business mix. We expect the strong structural growth drivers of our markets to continue well into the future.’

The firm declared an interim dividend per share of 0.7 pence, up 21% versus 0.58p the year before.

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