SU:RNSTESTZI:RA:12-05-08 06:00:03RB:20080512060003RY:YRC:Y..RH:Interim Management
StatementRD:Hansard Global
plcRI:IM00B1H1XF89RJ:IMRP:HSD RG: RT:RSI:
HR:1210572096-40a8a709-04918N1:N2:SN:RNS1546USQ:8411HS:ipxrns_2008-5-12_07:01:36_1_132~RNS
Number : 1546U
Hansard Global plc
11 May 2008
Hansard Global plc
Hansard Global plc ("Hansard" or "the Group"), the specialist long-term savings provider,
announces its second interim management
statement in the financial year ending 30 June 2008. Data are presented for the 10 months to 2
May 2008 or as at 2 May 2008 where applicable
and the comparative period or date in 2007 except where otherwise stated.
Summary
* Total new business flows lower by 9.9%(1) on an actual currency basis under APE,
reflecting maintained regular business flows and
significantly reduced single premium business as a result of weakness in the financial markets
* PVNBP of new business flows for the
period is £197.9m, down12.5% * Sustained new business margins of approximately 8.0%(2)
in difficult markets * Assets under
Administration rose 3.9% to £1.17 billion from 30 June 2007 to 2 May 2008, despite a
reduction of 3.6% in the last four months of that
period as a result of declines in global capital markets· Very strong financial
position of the Group with liquid resources
remaining high at £59.9m (2007: £61.4m)
· Continued recruitment of Account Executives to develop and manage intermediary
relationships, with three recruited since 31
December 2007
* Outlook:
* * New business - lower new business in the second half of the financial year,
reflecting more challenging environment
* EEV Operating profit - broadly in line with consensus expectations
* IFRS profit for the full year is likely to be approximately 10% above current market
expectations, reflecting high policyholder
retention, continued strength of back book and the benefit of foreign exchange movements
* Strong operating cash flows to provide full cover for dividend in line with 70% payout
ratio policy
* Potential benefit to EEV operating profit from developments in modelling methodology,
subject to actuarial review
Notes
* APE basis
* PVNBP basis Leonard Polonsky, Chief Executive of Hansard Global, commented: "The new business performance of the Group in the ten months to 2 May 2008 reflects
continuing tough market conditions. Regular premium
flows, particularly in the Far East and Latin America, for the period have built on the
performance of the previous financial year. However,
the downturn in major markets caused by the global credit crisis has accelerated since
January, which has impacted single premium flows,
largely derived from Europe. Hansard expects continuing uncertainty in the financial markets
to have a similar ongoing effect in the near
term. "Assets under administration, however, rose 3.9% in the period from 30 June 2007 to 2 May
2008, reflecting high retention of
policyholders and positive premium flows despite the continued decline in capital markets over
the period since January.
"Forecast IFRS profits for the year to 30 June 2008 are likely to be ahead of market
expectations. The Board's policy is to pay
dividends based on 70% of IFRS profit. On this basis, the dividend for the current financial
year will be fully covered by this year's
operating cash flows. "Hansard receives business from a strong and well-diversified portfolio of intermediaries
around the world. This, together with the
Group's robust balance sheet, means that Hansard Global has the strength to withstand the
current economic and financial market conditions
and is well positioned for growth in volume and profit as the macro environment improves." For further information
Hansard Global
01624 688 000
Leonard Polonsky, Chief Executive
Gordon Marr, DirectorBell Pottinger 020
7861 3232
Ben Woodford
Daniel de Belder Overview Financial performance and position IFRS profit for the period under review was as expected based on the half-year results,
underpinned by high policyholder retention, the
strength of the book of existing policies, and the relative strength of the Euro against
Sterling. Based on this, forecast IFRS profits for
the year to 30 June 2008 are likely to be ahead of market expectations.
The Group continues to be substantially capitalised to satisfy operational, regulatory and
Policyholder expectations. The Group's liquid
assets are held with a wide range of deposit institutions, in AAA-rated money market liquidity
funds and in UK Government Stocks. The Group
had no borrowings during the period or at the period end (30 June 2007: £Nil).
At 30 June 2007 liquid assets stood at £70.8m. During the period to date we have paid
£22m in dividends. Despite this, liquid assets
at 2 May 2008 stood at £59.9m, reflecting the strong cash generative nature of our business
model. In the period under review, new business margins were maintained at approximately 8.% on
the Present Value of New Business Premiums
basis. Despite continuing current adverse market conditions these margins are well above
industry average. The EEV of the Group's operations
continues to grow. New Business Flows The Group has achieved continued strong Regular Premium new business flows, particularly
from the Far East and Latin America. The
reduced flow of Single Premium business from Europe reflects continued investor uncertainty in
the direction of capital markets and
investment reticence in the target market. New business sales volumes are expressed in terms of the Group's internal metric,
Compensation Credit ("CC"), and two bases generally
made available to the market, Annualised Premium Equivalent ("APE") and the Present Value of
Future New Business Premiums (''PVNBP''). The
Group believes that CC is an appropriate measure of new business as it indicates the relative
value of each piece of new business to allow
the Group to maintain margins and protect capital, and it is a measure aligned to the
interests of the intermediaries that provide business
to the Group. New business premiums received in currencies other than sterling are translated at the
rate of exchange ruling on the transaction date. Comparisons against the corresponding period are on an actual currency basis..
New business flows for the ten months to 2 May 2008 (comparative period: ten months to 2
May 2007) are as follows:
Basis 2008 2007 % change
|