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Charles Taylor Increases Final Dividend Despite Fall In Annual Profit

14th Mar 2018 09:43

LONDON (Alliance News) - Charles Taylor on Wednesday reported a drop in profit for 2017 despite a strong increase in revenue, though the company has increased its final payout to shareholders.

Charles Taylor, which provides professional services to the insurance industry, posted statutory pretax profit of GBP7.4 million for 2017, down 31% from the GBP10.7 million recorded in 2016.

However, on an adjusted basis, which strips out items such as non-recurring costs and amortisation of acquired intangible assets, pretax profit rose by 3.5% to GBP15.3 million. Adjusted earnings before interest, tax, depreciation, and amortisation jumped 20% to GBP22.9 million.

Charles Taylor's revenue rose by 25% year-on-year to GBP210.8 million.

The company has upped its final dividend to 7.70 pence per share from 7.35p the year before. This takes its total payout for 2017 to 11.01p, compared to 10.50p in 2016.

Revenue in the Management Services segment rose 6.6% to GBP5.8 million, and increased 15% to GBP74.9 million in Adjusting Services. In the Insurance Support Services business, 2017 revenue soared by 64% to GBP73.0 million.

Operating profit in Management Services increased 17% to GBP10.1 million, more than doubled to GBP4.5 million in Adjusting Services from GBP1.8 million, but fell to GBP3.1 million from GBP3.8 million in Insurance Support Services.

The discrepancy between increased revenue and declining profit in Insurance Support Services was due to a rise in expenses to GBP69.8 million from GBP42.4 million, amid increased investment in the Charles Taylor InsureTech insurance technology business.

The year 2018 has begun well for Charles Taylor, it said, and it expects to perform in line with market expectations during the year.

Chief Executive David Marock said: "Charles Taylor achieved a solid overall financial performance in 2017. We delivered significant revenue growth combined with steady growth in adjusted profits before tax and good growth in earnings. Investments have been made both to take forward our key strategic initiatives, whilst also improving the group's underlying performance.

"We are very positive about the long-term prospects for Charles Taylor. We are taking forward numerous growth initiatives and our investments are delivering good results overall. We are confident that our strategy will deliver further growth, increased profit and deliver greater shareholder value."

Shares in Charles Taylor were down 2.1% on Wednesday at a price of 274.75p each.


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