28th Aug 2015 09:17
LONDON (Alliance News) - Charles Taylor PLC on Friday lifted its interim dividend as it reported higher revenue and profit in the first half, its performance driven by its insurance support services business and "steady progress" in its management services and owned insurance companies businesses, more than than compensating for tough trading conditions for its adjusting services unit, which has suffered due to low levels of insurance claims.
Charles Taylor, which provides professional services to insurers and operates life insurance businesses in run-off, said pretax profit was GBP5.3 million in the six months ended June 30, compared with GBP4.1 million in the corresponding half the prior year. Revenue increased by 22% to GBP69.1 million, while administrative expenses were up by 22% to GBP61.1 million.
The company increased its interim dividend to 3.00 pence from 2.85p.
"Charles Taylor has made progress in the first half of 2015. We completed a successful rights issue and have delivered on numerous significant initiatives in the first half year," Chief Executive David Marock said in a statement.
The company launched a Lloyd's of London managing agency, acquired an international life insurer, inked a deal to acquire a stake in an insurance software specialist, expanded its offices and appointed key staff such as senior loss adjusters.
It raised GBP28.9 million after expenses in its April rights issue, with the funds to go towards making acquisitions, investing and forming joint ventures.
Marock said the insurer had a positive start to the second half of 2015, with management services performing well and support services building on its showing in the first half. He said that adjusting services is receiving a "steady volume" of claims, and is in a good position to benefit when the volume of large and complex insured claims in the market returns to normal, while the owned insurance companies business is in a position to benefit from life company acquisitions.
"We are currently evaluating a number of acquisition, joint venture and business investment opportunities which have the potential to be a good strategic, cultural and financial fit with the group's existing businesses," Marock said.
Charles Taylor shares were down 2.7% at 236.00 pence on Friday morning.
By Samuel Agini; [email protected]; @samuelagini
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