I solely maintain a few FTSE 250 shares. The overwhelming majority of my portfolio is plucked from the FTSE 100 however specialist retirement advisor Simply Group (LSE: JUST) is a uncommon and heroic exception to that rule. Particularly after right this moment’s bumper outcomes.

I knew in regards to the firm from my work as a monetary journalist however by no means considered shopping for its shares as they had been having a torrid time.

The Simply Group share price crashed in July 2018 after administration warned it needed to put aside additional capital to cowl its lifetime mortgage merchandise, forward of a Prudential Regulation Authority session into the fairness launch market.

Tremendous progress inventory

Whereas the session involved each fairness launch product supplier, Simply was extra weak than large weapons like Aviva and Authorized & Normal Group. The session by no means got here to a lot, although, and occasions moved on.

Traders woke up to the truth that Simply had been closely oversold and was ripe for a comeback. This morning it made yet one more nice leap forwards, after posting a whopping 44% enhance in first-half underlying working revenue to £249m.

The Simply Group share price rocketed because of this and is up 16.87% right this moment. Personally, I’m up 65% since shopping for the inventory on 30 November. The 12-month return is 41.96%. For as soon as, I used to be somewhat fortunate with my timing.

Even after right this moment’s mighty leap, the shares nonetheless commerce at a laughably low 4.2 instances earnings. As a medium-sized enterprise with a market cap of £1.43bn, I believe it’s obtained loads of room for progress.

Simply focuses on later life and retirement earnings, promoting merchandise corresponding to annuities and fairness launch lifetime mortgages. Because the inhabitants ages and the state struggles, there’s rising demand for this sort of stuff.

At this time’s progress was largely pushed by increased new enterprise gross sales. Retirement earnings gross sales grew 30% to £2.5bn whereas pricing self-discipline and threat choice widened margins to 9%.

Low however rising earnings

New enterprise volumes are anticipated to proceed climbing within the second half, though margins might slim resulting from a shift in enterprise combine. Markets took that information fairly effectively. I hope that doesn’t come again to chunk buyers.

Simply seems to be stable with a capital protection ratio of 196%. Money era earlier than new enterprise was regular at £49m.

Simply Group additionally reported an improved return on fairness of 15.6% and a rise in tangible internet property per share to 240p. That provides an enormous security internet on condition that the share price is roughly half that at round 137p.

CEO David Richardson delivered the killer line by saying Simply expects to “substantially exceed previous 2024 guidance of doubling 2021’s £211m operating profit in three years”.

The yield is fairly meagre at simply 1.52%. Nevertheless, the board did hike right this moment’s interim dividend by 20% to 0.7p per share. So shareholder payouts are climbing properly.

My fundamental fear is that annuity gross sales may slide as soon as rates of interest begin falling, hitting a key income.

Ought to I purchase extra? Usually, I’m a contrarian who targets out-of-favour shares. Simply is now prone to show the exception to that rule, too.