22nd Sep 2016 09:39
LONDON (Alliance News) - Savings provider Hansard Global PLC said Thursday that a drop in profits and income for the full year was driven by continuing run-off from the closed Hansard Europe arm and more competitively priced premiums, as its share price fell.
Hansard reported an IFRS profit after tax of GBP8.3 million for the year ended June, down from GBP14.9 million year on year. Fee and commission income fell to GBP51.3 million from GBP56.3 million. IFRS earnings per share dropped to 6.0 pence from 10.9p.
Shares in Hansard were down 11% at 124.30p Thursday.
Isle of Man-based Hansard said the profit drop was due was due to continuing run-off from Hansard Europe, which comprises two life assurance companies and has been closed for business since June 2013, as well as a transition from more profitable older policies to competitively priced policies sold in the last three years.
"This trend will continue until the level of income generated by the increasing new business exceeds the loss of revenue from surrenders and maturity of the in-force business" said Chairman Philip Gregory.
Hansard Europe also faced litigation based on writs totaling approximately GBP13.1 million at the end of the financial year. During the year Hansard won three cases in Belgium and Italy relating to around GBP1.1 million worth of claims, but all have since been appealed.
However Hansard proposed an increased final dividend of 5.3p per share, up from 5.25p in 2015. If approved, the total dividend for the financial year will be 8.9p.
Hansard, which now focuses on the Middle East, Far East and Latin America, said it had seen new business levels in the financial year nearly double to GBP119.3 million from GBP60.6 million the year prior, measured via present value of new business premiums. The company also said it was seeing new business growth in the first quarter of the new financial year compared to the first quarter of the year ended June.
"We are very pleased with the delivery of sustained new business growth over the past year. The doubling of our full year business levels has put us on a strong footing after a year of transition in 2015. We see further opportunities for growth in new and existing markets and are confident of achieving this in the coming financial year" said Chief Executive Officer Gordon Marr.
By Adam Clark; [email protected]
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