23rd Oct 2014 07:38
LONDON (Alliance News) - Phoenix Group Holdings Thursday said it expects full-year cash generation to be towards the top end of the target range of between GBP500 million and GBP550 million, excluding the proceeds from the sale of Ignis Asset Management to Standard Life PLC.
In a statement, the closed life and pension fund consolidator said it generated GBP438 million of cash in the nine months ended September 30, up from GBP332 million in the first half of the year.
Cash generation is a measure of cash and cash equivalents, remitted by the group's operating subsidiaries to the holding companies and is available to cover dividends, bank interest and other items.
Phoenix received GBP390 million from the divestment of Ignis to Standard Life as the divestment completed on July 1, resulting in total cash receipts in the first nine months of the year of GBP828 million.
The group's long term cash generation target of GBP2.8 billion between 2014 and 2019 includes the Ignis divestment proceeds.
"We look set to finish the year in a good financial position, having successfully completed a comprehensive debt refinancing in July and achieved our 40% gearing target 18 months ahead of schedule," Chief Executive Clive Bannister said in a statement.
Phoenix shares were Thursday quoted down 0.3% at 722.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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