22nd Sep 2009 07:00
22nd September 2009
GABLE HOLDINGS INC
("Gable" or "the Company" or "the Group")
Unaudited Interim Results for the Six Months Ended 30 June 2009
Gable Holdings Inc (AIM: GAH), the European insurance company, announces its unaudited interim results for the six months ended 30 June 2009.
Highlights
Gross written premium of £4.0 million, up 17% on 2008
Profit after tax of £0.78 million, up 60% on 2008
Comment and Outlook
William Dewsall, Chief Executive, Gable Holdings Inc, said:
"Gable is starting to reap the benefits of its expansion in to new products and markets outside of its construction bias. The opportunities for Gable to continue this strategy and broaden its European exposure are increasing and the prospects for the Group are very exciting."
Enquiries:
Gable Holdings IncWilliam Dewsall, Chief Executive tel: +44(0)20 7337 7460
Hansard Group tel: +44(0)20 7245 1100Justine James/John Bick tel: +44 (0)7252 324431
Arden Partners plc David Hart tel: +44(0) 20 7398 1600
Gable Holdings Inc.
Unaudited Interim results for the six months ended 30 June 2009
The Board of Gable Holdings Inc. ("Gable") is pleased to present its unaudited results for the six months ended 30 June 2009.
Results
The results for the six months ended 30 June 2009 show gross written premium of £4.0 million (30 June 2008: £3.4 million). This reflects the challenging markets in the UK, of which approximately 62 per cent was written in the UK, in contrast to new European markets which delivered 38 per cent in the period.
In premium terms, the UK has continued to show a decline in business written, as anticipated and in line with the trading conditions faced by the SME market in the construction sector. However, the Board believes that this book of business is starting to show signs of recovery and notes that, even throughout this difficult trading environment, the Group remained profitable.
The product range in France has performed exceptionally well in the first half of 2009, exceeding our expectations. The Gable brand has become more established in this market and is expected to continue to increase business written. In June 2009, Gable announced new French business and the effect of this will be seen in the second half of the year and, more markedly, in 2010.
The Spanish market remains difficult and Gable is cautious about its future prospects. However, we continue to evaluate new products for this market on a selective basis, which are aligned to our risk and profit criteria.
The reported result for the period shows a profit of £0.78 million (2008: £0.49 million) and basic and diluted eps of 0.70p (2008: 0.43p). At the end of the period net assets were £10.7 million (2008: £9.2 million) and cash balances were £5.0 million (2008: £4.9 million).
Gable Insurance AG ("GIAG"), which is regulated by the Financial Market Authority in Liechtenstein, renewed its UK reinsurance on 1 July 2009, on a more favourable basis commensurate with its previous underwriting performance and with the level of UK business being written. GIAG continually monitors its portfolio of products and exposures and will seek to protect its capital by purchasing additional reinsurance programmes as and when prudent.
Current Trading and Outlook
The 2009 financial year is performing in line with the high expectations we have for Gable and the outlook for continued development and growth from our existing product and geographic range is excellent.
Gable is pleased to announce that it has just reached agreement in both Norway and the UK with two new partners to imminently launch innovative products in these territories. The opportunities for these two new products are extremely exciting. Gable's expectations for the income which may be generated for the coming 12-18 months will see a marked increase in the premium written by the Group as a whole and is, therefore, a further significant step in Gable's development.
The outlook for Gable continues to be one of great optimism for the forthcoming period.
William Dewsall
Chief Executive
22 September 2009
GABLE HOLDINGS INC.
Consolidated Income Statement
For the six months ended 30 June 2009
|
Six months |
Six months |
Year |
||
|
ended |
ended |
ended |
||
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
Notes |
£000s |
£000s |
£000s |
|
|
unaudited |
unaudited |
audited |
||
|
Gross written premiums |
3,997 |
3,445 |
5,943 |
|
|
Change in provision for gross unearned premiums |
5 |
(950) |
(551) |
(29) |
|
Gross earned premiums |
3,047 |
2,894 |
5,914 |
|
|
Outward reinsurance premiums |
(341) |
(1,033) |
(1,501) |
|
|
Change in provision for unearned |
|
|
|
|
|
premiums - reinsurers' share |
5 |
(95) |
238 |
(186) |
|
Net earned premiums |
2,611 |
2,099 |
4,227 |
|
|
Net investment return |
49 |
106 |
198 |
|
|
Total revenue from operations |
2,660 |
2,205 |
4,425 |
|
|
Gross claims paid |
5 |
(455) |
(529) |
(1,016) |
|
Movement in gross technical provisions |
5 |
(239) |
(200) |
(281) |
|
Gross claims incurred |
(694) |
(729) |
(1,397) |
|
|
Reinsurers' share of gross claims paid |
- |
- |
- |
|
|
Movement in reinsurers' share of technical provisions |
- |
- |
- |
|
|
Reinsurers share of claims incurred |
- |
- |
- |
|
|
Net claims incurred |
(694) |
(729) |
(1,397) |
|
|
Expenses incurred in insurance activities |
(838) |
(723) |
(1,495) |
|
|
Other operating expenses |
(336) |
(261) |
(620) |
|
|
Total operating charges |
(1,174) |
(984) |
(2,115) |
|
|
Profit from operations and before taxation |
792 |
492 |
913 |
|
|
Taxation |
(12) |
(5) |
(86) |
|
|
Profit for the period attributable |
||||
|
to equity holders of the Company |
6 |
780 |
487 |
827 |
|
Earnings per share |
4 |
0.70p |
0.43p |
0.74p |
All operations are continuing.
GABLE HOLDINGS INC.
Consolidated Balance Sheet
At 30 June 2009
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
Notes |
£000s |
£000s |
£000s |
|
|
unaudited |
unaudited |
audited |
||
|
Assets |
||||
|
Intangible assets |
4,250 |
4,250 |
4,250 |
|
|
Tangible fixed assets |
96 |
160 |
142 |
|
|
Deferred acquisition and reinsurance costs |
5 |
1,297 |
1,271 |
1,101 |
|
Prepayments and accrued income |
1,961 |
1,188 |
1,169 |
|
|
Trade and other receivables |
5,213 |
3,227 |
4,316 |
|
|
Cash and cash equivalents |
8 |
5,052 |
4,982 |
4,264 |
|
Total assets |
17,869 |
15,078 |
15,242 |
|
|
Equity |
||||
|
Share capital |
281 |
281 |
281 |
|
|
Share premium account |
5,406 |
5,406 |
5,406 |
|
|
Share based premium reserve |
20 |
20 |
20 |
|
|
Other reserves |
3,875 |
3,875 |
3,875 |
|
|
Retained earnings |
1,099 |
(368) |
124 |
|
|
Total equity attributable to equity holders and total equity |
6 |
10,681 |
9,214 |
9.706 |
|
Liabilities |
||||
|
Technical provisions |
5 |
6,099 |
5,147 |
4,780 |
|
Accruals and deferred income |
50 |
25 |
50 |
|
|
Trade and other payables |
1,039 |
692 |
706 |
|
|
Total liabilities |
7,188 |
5,864 |
5,536 |
|
|
Total liabilities and shareholders' funds |
17,869 |
15,078 |
15,242 |
|
Net asset value per ordinary share |
4 |
9.52p |
8.21p |
8.65p |
GABLE HOLDINGS INC.
Consolidated Cash Flow Statement
For the six months ended 30 June 2009
|
Six months |
Six months |
Year |
||
|
ended |
ended |
ended |
||
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
Notes |
£000s |
£000s |
£000s |
|
|
unaudited |
unaudited |
audited |
||
|
Cash flows from operating activities |
||||
|
Cash generated from operations |
7 |
775 |
(10) |
(788) |
|
Interest received |
31 |
102 |
198 |
|
|
Net cash flows from operating activities |
806 |
92 |
(590) |
|
|
Cash flows from investing activities |
||||
|
Sale/(purchase) of financial assets |
- |
- |
- |
|
|
Purchase of tangible fixed assets |
(18) |
(8) |
(44) |
|
|
Net cash flows from investing activities |
- |
(8) |
(44) |
|
|
Cash flows from financing activities |
||||
|
Shares issued |
- |
- |
- |
|
|
Net cash flows from financing activities |
- |
- |
- |
|
|
Net increase/(decrease) in cash and cash equivalents |
8 |
788 |
84 |
(634) |
|
Cash and cash equivalents at period beginning |
4,264 |
4,898 |
4,898 |
|
|
Cash and cash equivalents at period end |
8 |
5,052 |
4,982 |
4,264 |
GABLE HOLDINGS INC.
Notes to the Interim Consolidated Financial Statements
For the six months ended 30 June 2008
1. Basis of preparation
The Company was incorporated as a Corporation in the Cayman Islands which does not prescribe the adoption of any particular accounting framework. These interim financial statements have been prepared under the historical cost convention and in accordance with the requirements of International Reporting Standards, in so far as they apply to interim statements.
The Group financial statements consolidate the financial statements of Gable Holdings Inc. and subsidiary undertakings made up to 30 June 2009.
2. Accounting policies
There have been no changes to the Group's accounting policies as set out in the Group's financial statements for the year ended 31 December 2008 and, as such, those accounting policies have been applied to these interim statements.
3. Segmental information
The Group's business is the provision of construction insurance products and it has, in the six months to 30 June 2009, derived its business from Great Britain, Ireland, France and Spain
4. Earnings and net asset value per share
The calculation of earnings per share is based on the net profit of £780,000 (six months ended 30 June 2008: £487,000, year ended 31 December 2008: £827,000) divided by the weighted average number of shares in issue during the period of 112,200,000 (six months ended 30 June 2008: 112,200,000, year ended 31 December 2008 : 112,200,000).
The net asset value per share is calculated by dividing the shareholders' funds of £10,681,000 (30 June 2008: £9,214,000, 31 December 2008: £9,706,000) by the number of shares in issue at the end of the period - 112,200,000 (30 June 2008: 112,200,000, 31 December 2008: 112,200,000).
5. Insurance assets and liabilities
|
Six months |
Six months |
Year |
|
|
ended |
ended |
ended |
|
|
30 June |
30 June |
31 December |
|
|
2009 |
2008 |
2008 |
|
|
£000s |
£000s |
£000s |
|
|
unaudited |
unaudited |
audited |
|
|
Deferred acquisition and reinsurance costs |
|||
|
Acquisition costs deferred |
970 |
725 |
669 |
|
Provision for unearned reinsurance premium |
327 |
546 |
432 |
|
1,297 |
1,271 |
1,101 |
|
|
Technical provisions |
|||
|
Claims reserve |
2,809 |
2,246 |
2,401 |
|
Unearned premium |
3,290 |
2,901 |
2,379 |
|
6,099 |
5,147 |
4,780 |
|
|
Claims paid |
529 |
1,016 |
|
|
Claims reserved |
|||
|
At 1 January 2009 |
2,401 |
2,017 |
2,017 |
|
Claims notified and reserved in the period |
976 |
391 |
1,641 |
|
Incurred but not reported movement in the period |
(568) |
(162) |
(1,257) |
|
At 30 June 2009 |
2,809 |
2,246 |
2,401 |
|
Movement for provision in unearned premium |
|||
|
At 1 January 2009 |
2,379 |
2,350 |
2,350 |
|
Movement in provision for the period |
911 |
551 |
29 |
|
At 30 June 2009 |
3,290 |
2,901 |
2,379 |
|
Movement in provision for unearned reinsurance premium |
|||
|
At 1 January 2009 |
432 |
618 |
618 |
|
Movement in provision for the period |
(95) |
(72) |
(186) |
|
At 30 June 2009 |
327 |
546 |
432 |
6. Reconciliation of movements in shareholders' funds
|
Six months |
Six months |
Year |
|
|
ended |
ended |
ended |
|
|
30 June |
30 June |
31 December |
|
|
2009 |
2008 |
2008 |
|
|
£000s |
£000s |
£000s |
|
|
unaudited |
unaudited |
audited |
|
|
Profit for the period |
780 |
487 |
827 |
|
Currency translation differences |
195 |
(564) |
(412) |
|
Net (decrease)/increase in shareholders' funds |
975 |
(77) |
415 |
|
Equity shareholders' funds brought forward |
9,706 |
9,291 |
9,291 |
|
Equity shareholders' funds carried forward |
10,681 |
9,214 |
9,706 |
7. Reconciliation of profit for the period before taxation to net cash flows from operating activities
|
Six months |
Six months |
Year |
|
|
ended |
ended |
Ended |
|
|
30 June |
30 June |
31 December |
|
|
2009 |
2008 |
2008 |
|
|
£000s |
£000s |
£000s |
|
|
unaudited |
unaudited |
Audited |
|
|
Profit for the period after taxation |
780 |
487 |
827 |
|
Interest received |
(31) |
(102) |
(198) |
|
Non-cash exchange movements |
195 |
(564) |
(412) |
|
Depreciation of tangible fixed assets |
64 |
30 |
84 |
|
Increase of technical provisions |
1,319 |
780 |
413 |
|
(Increase)/decrease in deferred acquisition and reinsurance costs |
(196) |
(65) |
105 |
|
Increase in debtors |
(1,689) |
(948) |
(2,018) |
|
Increase in creditors |
333 |
372 |
411 |
|
Net cash flows from operating activities |
775 |
(10) |
(788) |
8. Reconciliation of net cash flows to movement in net funds
|
Six months |
Six months |
Year |
|
|
ended |
ended |
ended |
|
|
30 June |
30 June |
31 December |
|
|
2009 |
2008 |
2008 |
|
|
£000s |
£000s |
£000s |
|
|
unaudited |
unaudited |
audited |
|
|
Change in cash for the period |
788 |
84 |
(634) |
|
Change in net funds resulting from cash flows |
788 |
84 |
(634) |
|
Net funds brought forward |
4,264 |
4,898 |
4,898 |
|
Net funds carried forward |
5,052 |
4,982 |
4,264 |
9. General information
The information for the period ended 30 June 2009 does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The figures for the period ended 31 December 2008 have been extracted from the 2008 statutory financial statements prepared under IFRS. The auditors' report on those accounts was unqualified and did not contain a statement under section 237(2) of the Companies Act 1985.
Related Shares:
GAH.L