APRIL Thursday 3 September 2015
APRIL: First half results in line
- Consolidated sales of €401.7m, up 3.7% at constant consolidation scope and exchange rates (like for like), up 3.8% based on reported data
- Current EBIT of €43.7m, down €1.1m compared to 2014
- Net income of €27.3m, up 2.5% compared to the same period last year
Following the publication of APRIL's first half 2015 results, Group Chairman and CEO Bruno Rousset stated:
"These results are in line with our expectations. In a persistently demanding environment, we are focusing on the challenges facing the health market linked to the roll out of group private health insurance. We are also continuing our efforts to turn around and develop certain businesses, in particular the international segment and our network of agencies. This will take time, but our current sales momentum is encouraging. APRIL continues to invest in order to consolidate its future market positioning. Our teams have defined major growth levers for the coming years: these will enable us to take full advantage of our core strengths in innovation, policy and claims handling and customer service, which are at the heart of APRIL solid reputation, in order to return to sustainable growth."
| Group (IFRS - €m) | H1 2015 | H1 2014 | Change (%) | 2014 |
| Consolidated sales | 401.7 | 387.0 | +3.8% | 766.3 |
| Net financial income | 9.1 | 8.3 | +10.0% | 17.3 |
| Current EBIT | 43.7 | 44.8 | -2.3% | 76.1 |
| Current EBIT margin (% of sales) | 10.9% | 11.6% | 9.9% | |
| EBIT | 44.2 | 43.7 | +1.3% | 69.3 |
| Net income (Group share) | 27.3 | 26.6 | +2.5% | 36.6 |
The Board of Directors met on Thursday 3 September 2015 to approve APRIL's half-year financial statements.
Group
APRIL posted consolidated sales of €401.7m for the first half of 2015, up 3.8% from the same period last year. The sales' increase was driven by insurance premiums.
Financial income was up €0.8m: the impact of currency gains linked to the fall in the euro offset the expected decline in financial income due to the low interest rate environment. Beside, non-recurring expenses were down this year. As a result, current EBIT amounted to €43.7m, down €1.1m compared to H1 2014. The strong performance of certain businesses, such as loan Insurance, the improvement in the agency network's performance and increased earnings from the insurance business softened the expected impact of the decline in individual employee health insurance.
At 10.9%, the current EBIT margin remains robust, down just slightly compared to 2014 due to increased competition and investments aimed at preparing for the roll out of group private health insurance.
Without the non-current expenses which impacted the first half of 2014, first half 2015 EBIT rose 1.3% to €44.2m.
After a tax charge estimated at €17.2m, consolidated net income (Group share) amounted to €27.3m, higher than 2014.
Health & Personal Protection
| Health & Personal Protection (IFRS - €m) | H1 2015 | H1 2014 | Change (%) | 2014 |
| Consolidated sales | 258.1 | 251.7 | +2.6% | 493.8 |
| Net financial income | 5.9 | 5.7 | +2.6% | 11.9 |
| Current EBIT | 45.0 | 48.2 | -6.8% | 87.3 |
| Current EBIT margin (% of sales) | 17.4% | 19.2% | 17.7% | |
| EBIT | 44.9 | 48.5 | -7.4% | 87.0 |
| EBIT margin (% of sales) | 17.4% | 19.3% | 17.6% |
In Health & Personal Protection, the 2.6% increase in sales resulted from growth in the individual, group and expatriate health and personal protection insurance businesses. Although the loan insurance brokerage business made strong progress and group insurance continued to grow, this does not yet offset the decline in revenues from the individual employee health insurance segment.
The current EBIT margin amounted to 17.4%, down 1.8 percentage points, reflecting the investments made and the impact of the roll out of group private health insurance.
The division posted first half EBIT of €44.9m.
Property & Casualty
| Property & Casualty (IFRS - €m) | H1 2015 | H1 2014 | Change (%) | 2014 |
| Consolidated sales | 144.8 | 139.3 | +4.0% | 280.3 |
| Net financial income | 2.6 | 1.9 | NR | 3.9 |
| Current EBIT | 2.9 | 0.1 | NR | (3.3) |
| Current EBIT margin (% of sales) | 2.0% | 0.1% | (1.2)% | |
| EBIT | 3.4 | (1.2) | NR | (9.9) |
| EBIT margin (% of sales) | 2.4% | (0.9)% | (3.5)% |
In Property & Casualty, the 4.0% increase in sales resulted from an increase in premiums driven by growth in our significantly reinsured property and liability portfolios, as well as our legal protection business. Wholesale brokerage achieved positive performances across all segments, particularly in house and motorbike insurance and in the professional range.
The APRIL Mon Assurance agency network reduced its EBIT loss thanks to continuous growth in new business over the past 24 months, as well as effective cost management.
The P&C division also benefited from the withdrawal from Argentina, the reduction in losses in Russia and Ukraine and the absence of non-recurring expenses. However, the division remains adversely affected by the ongoing restructuring of the international travel insurance and assistance businesses.
EBIT is back in the black, amounting to €3.4m in the first half of 2015.
Financial position
APRIL's balance sheet at 30 June 2015 continues to reflect the Group's strong business model and prudent financial management: consolidated shareholders' equity (Group share) stood at €595.2m, borrowings are minimal and net cash, adjusted for deposit accounts held in relation to the Company's cash management policy, amounted to €191.9m, down €6.7m.
Strategic growth levers
Over the last few months, the APRIL teams have defined four key growth levers relating to the Group's core strengths (innovation, quality of service and policy and claims handling):
- To assert our leadership in wholesale brokering by strengthening our retail brokers' distribution channel via the promotion and development of this network, with a target of 12,000 active brokers within three years;
- To improve profitability in the international segment and export our expertise, in order to become an acknowledged challenger in international health and personal protection as well as assistance services;
- To develop partnerships and key accounts in order to become one of the leading suppliers to French institutions, for product range extensions and TPA services;
- To strengthen direct distribution by supporting and anticipating new client practices through our multichannel strategy, connecting stores with the web and call centres.
In insurance, APRIL will continue to provide practical support for the Group's brokerage activity, in particular in the health & personal protection and assistance businesses, whilst pursuing development in certain P&C businesses (legal protection, corporate risk, fleets).
Outlook
At this stage, APRIL expects the evolution of its current EBIT for the full year to be broadly in line with the trend observed in the first half. APRIL is continuing any required investments in order to consolidate its market positions, particularly relating to group health insurance.
Group CEO Bruno Rousset, Deputy CEO Emmanuel Morandini and Group CFO Marc Le Doze will present these results during a conference call with live slideshow on Thursday 3 September at 6.30pm. A replay of the call will be available as of the following day on the "Finance" section of our website: www.april.com:
http://www.april.com/
Upcoming events:
- Q3 2015 sales: 26 October 2015 after market close
Contacts:
Analysts and investors
Sandrine Gallien: +33 (0)4 72 36 49 31 - +33 (0)6 20 26 06 24 - sandrine.gallien@april.com:
mailto:sandrine.gallien@april.com
Press
Sandrine Trichard: +33 (0)6 15 45 75 47 - sandrine.trichard@insign.fr:
mailto:sandrine.trichard@insign.fr
Samantha Druon: +33(0)4 72 00 46 56 - samantha.druon@insign.fr:
mailto:samantha.druon@insign.fr
About APRIL
APRIL, an international insurance services group, has chosen innovation as the key to driving its development since it was established in 1988, by seeing insurance from the customer's perspective. Its ambition is to make insurance easier and more accessible. Making this commitment, which means pushing boundaries and keeping things simple, has enabled it to become the leading wholesale broker in France and an international authority in the sector. 3,800 staff members offer, advise on, design, manage and distribute specialised insurance solutions (Health & Personal Protection, Property & Casualty, Mobility and Legal Protection) and assistance services for private individuals, professionals and businesses. APRIL operates in Europe, the Americas, Asia, Africa and the Middle East. Listed on Euronext Paris (Compartment B, SRD - deferred settlement service), the Group posted 2014 sales of €766.3m.
Complete regulated information may be viewed in the "Finance" section of www.april.com:
http://www.april.com/.
Appendix 1: Summary consolidated income statement
| (IFRS - €m) | H1 2015 | H1 2014 |
| Sales | 401.7 | 387.0 |
| Other operating income | 12.7 | 10.1 |
| Net financial income (excluding financing cost) | 9.1 | 8.3 |
| Total income from ordinary activities | 423.6 | 405.4 |
| Underwriting expenses net of ceded reinsurance | (140.1) | (122.6) |
| Retrocession of commissions | (60.2) | (59.6) |
| Staff costs | (95.7) | (98.1) |
| Other purchases and external expenses | (54.9) | (52.9) |
| Depreciation allowance | (7.5) | (6.6) |
| Provisions | (4.7) | (4.7) |
| Other operating income and expenses | (16.7) | (16.1) |
| Current EBIT | 43.7 | 44.8 |
| Non-current income and expenses | 0.5 | (1.1) |
| EBIT | 44.2 | 43.7 |
| Financing cost | (0.0) | (0.0) |
| Corporate income tax | (17.2) | (16.6) |
| Net income from continuing operations | 27.1 | 27.0 |
| Net income/(loss) from discontinued operations after tax | 0.0 | 0.0 |
| Consolidated net income | 27.0 | 27.0 |
| Minority interests | (0.3) | 0.4 |
| Net income (Group share) | 27.3 | 26.6 |
Appendix 2: Summary consolidated balance sheet
| (IFRS - €m) | 30 June 2015 | 31 December 2014 |
| Intangible assets | 277.1 | 268.1 |
| Goodwill | 222.1 | 216.3 |
| Tangible assets | 12.5 | 12.0 |
| Financial investments | 666.0 | 686.0 |
| Reinsurers' share of underwriting provisions and financial liabilities | 200.4 | 173.7 |
| Other non-current assets | 14.9 | 15.9 |
| Total non-current assets | 1,170.9 | 1,155.7 |
| Receivables from insurance and accepted reinsurance operations | 94.3 | 38.0 |
| Receivables from ceded reinsurance operations | 122.9 | 108.5 |
| Trade receivables | 478.3 | 177.1 |
| Cash and cash equivalents | 102.9 | 81.3 |
| Other current assets | 74.8 | 41.2 |
| Total current assets | 873.2 | 446.0 |
| Total assets | 2,044.1 | 1,601.7 |
| Shareholders' equity (Group share) | 595.2 | 578.9 |
| Minority interests | 0.7 | 0.4 |
| Total shareholders' equity | 595.9 | 579.3 |
| Underwriting provisions for insurance policies | 548.2 | 479.8 |
| Provisions for contingencies and charges | 20.7 | 21.2 |
| Other non-current liabilities | 9.1 | 10.9 |
| Total non-current liabilities | 578.0 | 511.8 |
| Payables from insurance and accepted reinsurance operations | 93.6 | 15.7 |
| Current bank loans and overdrafts | 17.0 | 11.7 |
| Payables from ceded reinsurance | 152.4 | 109.4 |
| Operating liabilities | 443.1 | 255.2 |
| Other current liabilities | 164.1 | 118.7 |
| Total current liabilities | 870.2 | 510.6 |
| Total equity and liabilities | 2,044.1 | 1,601.7 |
Appendix 3: Summary consolidated cash flow statement
| (IFRS - €m) | H1 2015 | H1 2014 |
| Net income (Group share) | 27.3 | 26.6 |
| Net income/(loss) from discontinued operations | - | - |
| Minority interest in net income of consolidated companies | (0.3) | 0.4 |
| Net income from continuing operations | 27.1 | 27.0 |
| Cash flow | 9.1 | 34.3 |
| Change in operating working capital | 15.7 | 6.3 |
| Operating cash flow from discontinued operations | - | - |
| Net cash flow from operating activities | 24.7 | 40.6 |
| Net investment in tangible and intangible assets | (11.6) | (9.9) |
| Net investment in financial assets | 20.9 | (1.1) |
| Net cash flow on acquisitions of consolidated companies | (1.0) | (0.9) |
| Investment in equity-accounted companies | - | - |
| Investment cash flow from discontinued operations | - | - |
| Net cash flow from investing activities | 8.3 | (11.9) |
| Capital increase linked to exercise of stock options | - | - |
| Capital increase linked to minority interests in consolidated companies | - | 0.1 |
| Purchase and sale of own shares | - | 0.1 |
| Dividends paid | (17.3) | (21.1) |
| Net change in borrowings | (0.5) | (0.1) |
| Financing cash flow from discontinued operations | - | - |
| Net cash flow from financing activities | (17.8) | (21.0) |
| Cash flow from discontinued operations | - | - |
| Impact of changes in foreign exchange rates | 1.1 | - |
| Change in net cash and cash equivalents | 16.3 | 7.8 |
http://hugin.info/165829/R/1949651/708638.pdf
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: April via Globenewswire
