Hansard Global plc : Results for the year ended 30 June 2012
09/21/2012| 04:29am US/Eastern
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21 Sept 2012
Hansard Global plc ("Hansard" or "the
Group"), the specialist long-term savings provider,
today announces its results for the year ended 30 June 2012.
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Year ended 30 June
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2012
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2011
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Regular premium New Business sales (PVNBP)
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£124.4m
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£112.0m
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Single premium New Business sales (PVNBP)
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£51.3m
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£109.1m
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New business margin
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9.6%
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8.3%
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Cash payback on new business
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2.6 years
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2.3 years
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IFRS profit after tax
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£11.2m
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£16.5m
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EEV operating profit after tax
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£4.8m
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£14.9m
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EEV profit after tax
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(£13.7m)
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£28.5m
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Operating cash surplus
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£37.2m
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£35.7m
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Recommended final dividend per share
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8.0p*
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8.0p
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* Subject to approval by shareholders
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As at 30 June
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2012
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2011
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European Embedded Value
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£224m
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£257m
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Assets under Administration
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£1,034m
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£1,230m
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Summary
The performance of the Group during the financial year
demonstrates success from the Group's investment in
distribution infrastructure and its focus on regular premium
business sourced from the growth economies of the Far East
and Latin America. Regular premium new business flows are at
a record level of £124.4m (2011: £112.0m) and have
contributed to industry-leading margins of 9.6%. Almost 60%
of this regular premium business has been introduced
electronically through Hansard OnLine.
Continued instability in the Eurozone has hampered the
progress of single premium new business flows. We do not
anticipate the position to be improved within the next few
years.
Despite turmoil in all major stock markets throughout the
year, total new business flows are marginally higher than
those of the previous financial year based on Compensation
Credit, the Group's internal measure. Based on PVNBP, new
business is 20.5% below last year due to lower single
premiums. The initial costs of acquiring this new business
have been funded by positive operating cash flows of £37.2m
(2011: £35.7m) generated from the existing policy book.
However we are not immune from market forces that have
combined to erode value for almost all market participants.
Results under both IFRS and EEV reflect the impact of market
falls during the year; reactions to the continuing
uncertainties in the Eurozone; continuing investment in our
business and the increased burden of legal fees, regulatory,
compliance and related costs.
Trading Results
Results for the year under IFRS and EEV are in line with
previous guidance.
Dividends
The Board has proposed a final dividend of 8.0p per share
which, if approved by the shareholders, represents a total
dividend of 13.9p per share in respect of the financial year
(2011: 13.75p), an increase of 1.1%.
The proposed final dividend is at the same level as the
previous year. Over the last two years the Company has paid
dividends that have been £16m in excess of cash generated by
the business. The Board believes that now is an appropriate
time to adjust the dividend to a level commensurate with the
surplus cash generated by the business.
Dividend payments for the year ended 30 June 2013 therefore
are expected to total 8.0p per share and it is the
Board's intention to pursue a progressive policy
thereafter.
Current Trading
New business levels in the first two months of the financial
year reflect the cautious stance of policyholders and are
significantly below the level of the corresponding period in
the prior year. However the Board expects new business to
gather momentum in the second quarter on the back of new
product launches and also more positive investment market
conditions.
Interim Management Statement
The first Interim Management Statement in respect of the year
ending 30 June 2013 is expected to be published on 8 November
2012.
Leonard Polonsky, Chief Executive of Hansard Global plc,
commented:
"The performance of the Group throughout the financial
year was encouraging. In line with our new business strategy
we continued to invest in regular premium flows and to focus
on growth markets.
Single premium business remains constrained by market
volatility and the instability in the Eurozone that shows few
signs of abating. While the economic environment remains
challenging, we have a robust strategy in place and are
successfully developing the business in the growth markets of
the Far East and Latin America.
For further information
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