RNS Number : 9025D
Gable Holdings Inc
22 September 2008
RNS Announcement
GABLE HOLDINGS INC
("Gable" or "the Company" or "the Group")
Unaudited Interim Results for the six months ended 30 June 2008
Gable Holdings Inc (AIM: GAH), the European insurance company, announces its unaudited interim results for the six months ended 30 June
2008.
Summary of the Period
* Gross written premium of £3.5 million produces an earned premium of £2.9 million and net profit before tax of £0.5 million.
* New more cost effective reinsurance programme in place from 1st July 2008.
* Net insurance margin has increased to 22.4% from 15.8% for the same period last year.
* Earnings per share has increased from 0.35p to 0.43p.
* GIAG's solvency position remains very strong and exceeds the requirement for its current and currently anticipated growth strategies.
* GIAG has begun writing business in both France and Spain.
Comment and Outlook
William Dewsall, Chief Executive, Gable Holdings Inc, said:
"Gable is in a strong position to carry on its philosophy of writing profitable business within the UK against what is proving to be a
harsh economic climate. The Company has taken this same underwriting philosophy into new European markets and is confident of achieving its
objectives even in these difficult times."
Enquiries:
William Dewsall, Chief Executive
Gable Holdings Inc tel: +44(0)20 7337 7460
Chris Fielding , Arden Partners plc tel: +44(0)20 7398 1600
Gable Holdings Inc.
Unaudited Interim results for the six months ended 30 June 2008
The Board of Gable Holdings Inc. ("Gable") is pleased to present its unaudited results for the six months ended 30 June 2008.
Results
The results for the six months ended 30 June 2008 show gross written premium of £3.5 million (30 June 2007: £4.0 million), which
reflects the challenging markets in the UK.
GIAG's solvency position remains very strong and exceeds the requirement for our current and currently anticipated growth strategies.
The reported result for the six month period shows a profit of £0.5 million (2007: £0.4 million). At the end of the period net assets were
£9.2 million (2007: £8.9 million).
Cash balances at the end of the period were £5.0 million, of which £1.0 million was held by third parties on the Group's behalf as a
result of premium collection, in addition financial assets held in respect of insurance capital in Liechtenstein were £3.7 million.
During the period GIAG purchased its new reinsurance programme, commencing 1 July 2008, which is considerably more cost effective than
its previous treaty and is written by major World and European underwriters. The benefits of this new programme will be seen incrementally
over the coming 12 months.
While the UK market remains challenging Gable has persisted with writing profitable business within its network of UK brokers and will
continue to do so. GIAG will be looking at extending its current product base within the UK and will update the market when appropriate.
The Board was pleased with the start GIAG has made into Europe with business being written in both France and Spain. These new markets
are still in their infancy however early indications show we are building a strong book of business. We continue to consider other European
markets with favourable conditions and will update the shareholders when appropriate.
Board
On 26 June the Company announced the appointment of Lucas Slob as a Non-Executive Director. Lucas has over 20 years non-life insurance
expertise working in the Zurich Group, focusing on engineering, risk management and systems. We welcome Lucas to the Company. The Board
would also like to thank Tim Moss, who stepped down from the Board as Non-Executive Director of the Company. Our thanks to Tim for his
contribution.
Outlook
The Board believes that Gable is in a strong position to carry on its philosophy of writing profitable business within the UK against
what is proving to be a harsh economic climate. The Company has taken this same underwriting philosophy into new European markets and is
confident of achieving its objectives even in these difficult times. The Company will continue to introduce new products in markets around
Europe, where it believes profitable business can be written, both later in the year and into 2009. The Board remains confident that it is
well placed to meet its expectations for the year ended 31 December 2008.
William Dewsall
Chief Executive
22 September 2008
GABLE HOLDINGS INC.
Consolidated Income Statement
For the six months ended 30 June 2008
Six months Six months Year ended
ended ended 31
30 June 2008 30 June 2007 December
£000s £000s 2007
£000s
Notes unaudited unaudited audited
Gross written premiums 3,445 3,971 6,040
Change in provision for gross
unearned premiums 5 (551) (629) 276
Gross earned premiums 2,894 3,342 6,316
Outward reinsurance premiums (1,033) (1,415) (1,900)
Change in provision for
unearned
premiums - reinsurers' share 5 238 203 (319)
Net earned premiums 2,099 2,130 4,097
Net investment return 106 72 66
Total revenue from operations 2,205 2,202 4,161
Gross claims paid 5 (529) (105) (444)
Movement in gross technical 5 (200) (662) (1,029)
provisions
Gross claims incurred (729) (767) (1,473)
Reinsurers' share of gross - - -
claims paid
Movement in reinsurers' share
of technical provisions - - -
Reinsurers share of claims - - -
incurred
Net claims incurred (729) (767) (1,473)
Expenses incurred in insurance (723) (836) (1,579)
activities
Other operating expenses (261) (174) (595)
Total operating charges (984) (1,010) (2,174)
Profit from operations and 492 425 514
before taxation
Taxation (5) (30) (8)
Profit for the period
attributable
to equity holders of the 6 487 395 506
Company
Earnings per share 4 0.43p
0.35p 0.45p
All operations are continuing.
GABLE HOLDINGS INC.
Consolidated Balance Sheet
At 30 June 2008
30 June 30 June 31 December
2008 2007 2007
Notes £000s £000s £000s
unaudited unaudited audited
Assets
Intangible assets 4,250 4,250 4,250
Tangible fixed assets 160 212 182
Reinsurers' share of technical - - -
provisions
Deferred acquisition and 5 1,271 1,874 1,206
reinsurance costs
Prepayments and accrued income 1,188 594 1,124
Trade and other receivables 3,227 2,801 2,343
Financial assets - 3,628 -
Cash and cash equivalents 8 4,982 1,302 4,898
Total assets 15,078 14,661 14,003
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 (368) (699) (291)
Total equity attributable to equity
holders and total equity 6 9,214 8,883 9,291
Liabilities
Technical provisions 5 5,147 4,905 4,367
Accruals and deferred income 25 - 50
Trade and other payables 692 873 295
Total liabilities 5,864 5,778 4,712
Total liabilities and shareholders' 15,078 14,661 14,003
funds
Net asset value per ordinary share 4 8.21p 7.92p
8.28p
GABLE HOLDINGS INC.
Consolidated Cash Flow Statement
For the six months ended 30 June 2008
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2008 2007 2007
Notes £000s £000s £000s
unaudited unaudited audited
Cash flows from operating
activities
Cash generated from operations 7 (10) 290 158
Interest received 102 44 69
Net cash flows from operating 92 334 227
activities
Cash flows from investing
activities
Sale/(purchase) of financial - - 3,703
assets
Purchase of tangible fixed assets (8) - -
Net cash flows from investing (8) - 3,703
activities
Cash flows from financing
activities
Shares issued - - -
Share issue costs - - -
Net cash flows from financing - - -
activities
Net increase in cash and cash 8 84 334 3,930
equivalents
Cash and cash equivalents at 4,898 968 968
period beginning
Cash and cash equivalents at 8 4,982 1,302 4,898
period end
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 2008.
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 2007 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 2008, 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 £487,000 (six months ended 30 June 2007: £395,000, year ended 31
December 2007: £506,000) divided by the weighted average number of shares in issue during the period of 112,200,000 (six months ended 30
June 2007: 112,200,000, year ended 31 December 2007 : 112,200,000).
The net asset value per share is calculated by dividing the shareholders' funds of £9,214,,000 (30 June 2007: £8,883,000, 31 December
2007: £9,291,000) by the number of shares in issue at the end of the period - 112,200,000 (30 June 2007: 112,200,000, 31 December 2007:
112,200,000).
5. Insurance assets and liabilities
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2008 2007 2007
£000s £000s £000s
unaudited unaudited audited
Deferred acquisition and reinsurance
costs
Acquisition costs deferred 725 751 588
Provision for unearned reinsurance 546 1,123 618
premium
1,271 1,874 1,206
Technical provisions
Claims reserve 2,246 1,650 2,017
Unearned premium 2,901 3,255 2,350
5,147 4,905 4,367
Claims paid 529 105 444
Claims reserved
At 1 January 2008 2,017 988 988
Claims notified and reserved in the 391 601 917
period
Incurred but not reported movement in (162) 61 112
the period
At 30 June 2008 2,246 1,650 2,017
Movement for provision in unearned
premium
At 1 January 2008 2,350 2,626 2,626
Movement in provision for the period 551 629 (276)
At 30 June 2008 2,901 3,255 2,350
Movement in provision for unearned
reinsurance premium
At 1 January 2008 618 920 920
Movement in provision for the period (72) 203 (302)
At 30 June 2008 546 1,123 618
6. Reconciliation of movements in shareholders' funds
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2008 2007 2007
£000s £000s £000s
unaudited unaudited audited
Profit for the period 487 395 506
Currency translation differences (564) (73) 224
Net (decrease)/increase in shareholders' (77) 322 730
funds
Equity shareholders' funds brought 9,291 8,561 8,561
forward
Equity shareholders' funds carried 9,214 8,883 9,291
forward
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
2008 2007 2007
£000s £000s £000s
unaudited unaudited audited
Profit for the period after taxation 487 395 506
Interest received (102) (44) (69)
Non-cash exchange movements (564) 2 224
Depreciation of tangible fixed assets 30 30 60
Increase of technical provisions 780 1,291 753
(Increase)/decrease in deferred
acquisition and reinsurance costs (65) (268) 400
Increase in debtors (948) (1,630) (1,702)
Increase in creditors 372 514 (14)
Net cash flows from operating activities (10) 290 158
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
2007 2006 2006
£000s £000s £000s
unaudited unaudited audited
Change in cash for the period 84 334 3,930
Change in net funds resulting from cash 84 334 3,930
flows
Net funds brought forward 4,898 968 968
Net funds carried forward 4,982 1,302 4,898
9. General information
The information for the period ended 30 June 2008 does not constitute statutory accounts as defined in Section 240 of the Companies Act
1985. The figures for the period ended 31 December 2007 have been extracted from the 2007 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SFDFIUSASELU
|