Just Retirement (47p) is a niche business which helps people close to or in retirement maximise the benefits of their pension and property assets.

This is implemented by providing tailored solutions in conjunction with financial advisors. The two products offered are enhanced annuities and equity release mortgages. This is clearly a large market to cover and in the year to June 2008 the total value of the UK annuity market was some £11.1 billion. The business was only founded in 2004 but has grown rapidly to its current position, joining AIM in December 2006.

Given what has happened in the financial markets, it is unsurprising that Just Retirement has seen its share price plummet from a high of over 300p less than two years ago. However, as recently as February 6, the company reiterated that it is performing well and UK demographics make the company's offering look attractive over the longer term. Although there could be increasing competition around, there appears to be a solid pipeline of potential business for the company to pick up and, for the time being at least, strong positive cashflow should be achieved.

On the face of it, the shares are currently on a very undemanding rating. Although quarterly sales slipped back slightly in the final quarter of 2008, total sales still came in at £170.4m and year-on-year equity release mortgage advances have grown. When more normal market conditions return the company believes that it is in a market which is poised for significant growth and it is difficult to disagree with this hypothesis.

It should be noted that discussions are currently ongoing with regards to an offer being made for the company. While a takeover could provide a quick windfall for those buying in at the current level, there is no guarantee that any sort of offer will materialise and, even if it does, there is a strong possibility that the offer would not be high enough to be successful.

This business is highly specialised and therefore exposed to a downturn in its key markets or the introduction of stronger competition. However, Just Retirement has come a long way in a short space of time and there is plenty of scope for the share price to rebound if analysts’ forecasts of profitability are met. All things considered, we rank the shares as a buy.

WARNING: Opinions expressed are the writers’ judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek their own professional advice as to the suitability of the investments.