23rd Mar 2016 07:47
LONDON (Alliance News) - Closed-life fund consolidator Phoenix Group Holdings PLC on Wednesday said it met its cash generation target for 2015 as its operating profit for the year declined.
The FTSE 250-listed company, which buys pension books closed to new investors, said its IFRS operating profit for the year to the end of December was GBP324.0 million, compared to GBP483.0 million a year earlier, reflecting the sale of the Ignis business in 2014.
Cash generation for Phoenix was GBP225.0 million, sharply down from the GBP567.0 million generated a year earlier but within Phoenix's guidance of GBP200.0 million to GBP250.0 million.
The group said it will seek to generate GBP350.0 million to GBP450.0 million in cash in 2016 and set a new long-term cash generation target of GBP2.0 billion for 2016 to 2020.
Phoenix will pay a final dividend of 26.7 pence per share, flat year-on-year, taking the total dividend to 53.4p, also flat.
"2015 has been a year of significant milestones for Phoenix. Despite regulatory upheaval in the shape of Pension Freedoms and Solvency II, we have once again met or exceeded all of our financial targets and achieved an investment grade rating," said Chief Executive Clive Bannister.
"Phoenix has come a long way in recent years and is now a simpler and more focused business. I believe the impact of regulatory developments will change the landscape of the UK life insurance industry, providing Phoenix with a number of opportunities to grow our business," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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