Insurance broker Jardine Lloyd Thompson reported flat first-half underlying pre tax earnings and reiterated its downbeat 2006 forecast.
Pre-tax profit before exceptional items and impairment charges was £47.1 million, compared with £47.3 million in the same period last year.
I n the half, higher investment income offset lower trading profit.
However, the company has struggled to cope with falling insurance prices in its main markets, a weak US dollar and high costs.
Chief executive Dominic Burke said: "We expected 2006 to be a challenging year. In light of the very difficult trading conditions we think we have delivered a very creditable performance."
The company - which has an operation at Birmingham's City Plaza - also said it was closing its defined benefit pension scheme and moving to a defined contribution arrangement.
In the half, its underlying trading profit fell nine per cent to £38.3 million, reflecting a slide in trading margin to 15 per cent from 17 per cent a year earlier. This decline was offset by a jump in investment income to £8.9 million from £6.7 million.
JLT shares dropped 2.4 per cent in early trading to 356p, the biggest faller on the FTSE non-life insurance index.
Analysts said the cautious forecast and the prospect for further margin erosion meant JLT was still some way from turn-ing itself around.
Mr Burke reiterated that JLT's performance in 2006 was unlikely to show anything more than a modest improvement on 2005.
It said it expected a further deterioration in the trading margin in its core Risk Solutions business unit, which fell to 14 per cent from 18 per cent during the same period last year.
Shares in JLT's rose by about 16 per cent from June 14 to July 12 on spec-ulation it could either launch a bid or be the target of a bid. They fell five per cent since bid talks between JLT and Heath Lambert Group broke down.
Numis analyst Nick Johnson said he believed J LT's current 2006 price/earnings ratio of 15.5 times was too generous considering its challenging environment.
Mr Johnson reiterated his "reduce" recommendation and maintained a target price of 315p, which assumes the 2007 price/earnings ratio falls to around 12 times, in line with US listed peers Willis Group Holdings, Aon, and Marsh & McLennan Companies.
Mr Burke said his firm was making good progress with its operational review but the benefits will only trickle through in 2007 and are only likely to be fully reflected in 2008.
JLT said it was entering into talks with its staff to close its defined benefit p ension scheme and replace it with a defined contribution arrangement.
It said the financial impact of doing this is expected to be "reasonably material". It said it would make an initial cash injection of £35 million into the scheme, whose deficit stood at £146 million at the end of March, and would make further contributions totalling £30 million by 2009.
Mr Burke said he was "absolutely certain" the company had a bright future as a standalone company.
The company set an interim dividend of 8.5p per share, unchanged from the half-year payout in 2005.