Interim Management Statement
Hansard Global plc
19 November 2007
Hansard Global plc
('Hansard' or the 'Company')
Interim Management Statement
Hansard Global plc ('Hansard' or 'the Group'), the specialist long-term savings
provider, announces continued strong progress and issues its first interim
management statement in advance of its Annual General Meeting being held later
today.
Highlights
•New business results, as measured by APE on a constant currency basis,
for the four months ended 31 October 2007 show substantial growth over the
same period last year up 30.4% to £11.2m
•Margins have been maintained at levels consistent with prior periods
•Assets under Administration at 31 October 2007 rose 8.2% over the period
since 30 June 2007 to £1.22billion
•Overall performance of the Group during the period has been in line with
expectations
•The financial position of the Group remains very strong
•The transfer of shares in the Group from Polar Cap Limited to individual
shareholders was completed on 30 October 2007
Leonard Polonsky, Chief Executive of Hansard Global, commented:
'We are pleased with the performance of the Group in the first four months of
this financial year, which has been in line with expectations. Continued strong
new business flows for the period to 31 October 2007 have built on the
performance of the previous financial year. Assets under administration also
rose 8% despite the volatility in capital markets over the period. Growth in
intermediary activity, particularly in the Far East, Scandinavia and Latin
America, continues in line with our forecast levels. We are confident that the
outlook for continued new business growth remains positive for the Group.'
Strong New Business Flows
The Group has achieved continued strong new business flows at consistent
margins.
New business premiums on an APE basis1 in sterling terms1 during the four months
to 31 October 2007 totalled £11.2 m. This represents an increase of 30.4% over
the £8.6 m APE in the equivalent period in the previous financial year,
calculated on a constant currency basis. This reflects continued strong new
business flows, particularly in the Far East, Scandinavia and Latin America.
Steady growth has been achieved in Regular premium flows and the flow of Single
premium business reflects a number of cases that were not issued in Q4 of the
last financial year.
The continued strengthening of sterling against the US Dollar has the effect of
depressing a proportion of our new business figures, as approximately 50% of new
business in the period was received in US Dollars. The presentation of these
figures on a constant currency basis provides an appropriate representation of
the activities of the intermediaries who introduce business to the Group.
New business flows using the Group's internal metric, 'Compensation Credit',
which measures the relative value of each piece of new business, totalled £5.5m
for the four months to 31 October 2007 compared with £4.4m (on an actual
currency basis) in the comparative period of the last financial year, an
increase of 25.9%.
Up to 30 September 2007, new business margins were approximately 8.1% on the
Present Value of New Business Premiums basis, consistent with prior periods.
These margins are well above industry average, principally due to the Group's
continued focus on value and the maintenance of the margin.
Growth in Assets under Administration and Liquid Assets
The value of Assets under Administration as at 31 October 2007, at £1.22 bn, has
risen by 8.2% since 30 June 2007. Despite the volatility in capital markets and
further weakening of US dollar against Sterling, asset values have continued to
grow, reflecting positive cash flows. Since 31 October 2006, Assets under
Administration grew by 26.8%.
Since year-end, cash and cash equivalents have increased from £70.8m to £77.2m,
reflecting the strong liquidity of our business model. Subject to shareholder
approval at the AGM, a total of £15.1m will be paid in dividends on 23 November
2007. The total dividend comprises 6p per share being the final dividend for the
year ended 30 June 2007 being paid in line with the stated dividend policy of
the Group, plus 5p per share being a special dividend in recognition of the
Company's strong cash position and cash accretive model.
Polar Cap Limited
The transfer of shares in the Group from Polar Cap Limited to individual
shareholders was achieved on 30 October 2007. There have been no changes to the
underlying beneficial interests in the Company, although as a result of the
transfer, Dr Polonsky's direct holding in the Company increased to 43.2% and the
direct holding of the Polonsky Foundation has increased to 9.9%. There was no
change to the number of shares in existence.
Results for the half-year
Results for the half-year ending 31 December 2007 will be announced on 28
February 2008.
For further information
Hansard Global
Leonard Polonsky, Chief Executive 01624 688000
Gordon Marr, Director 01624 688000
Bell Pottinger 020 7861 3232
Ben Woodford
Daniel de Belder
NEW BUSINESS RESULTS FOR THE FOUR MONTH PERIOD ENDED 31 OCTOBER 2007
1. APE on a Constant Currency Basis
Unaudited
Four months ended 31 October
2007 2006 Change
£m £m %
New Business Premiums (APE)(1)(2)
Single 5.3 3.6 47.9%
Regular 5.9 17.6%
---------- ----------- ----------
11.2 8.6 30.4%
---------- ----------- ----------
New Business Premiums (APE)(1)(2)(3)
EU and EEA 4.1 3.2 28.7%
Rest of World 7.1 5.4 31.4%
---------- ----------- ----------
11.2 8.6 30.4%
---------- ----------- ----------
2. APE on an Actual Exchange Rate basis
Unaudited
Four months ended 31 October
2007 2006 Change
£m £m %
New Business Premiums (APE)(1)
Single 5.3 3.6 47.9%
Regular 5.9 5.3 10.7%
---------- ----------- ----------
11.2 8.9 25.8%
---------- ----------- ----------
New Business Premiums (APE)(1)(3)
EU and EEA 4.1 3.1 30.6%
Rest of World 7.1 5.8 23.3%
---------- ----------- ----------
11.2 8.9 25.8%
---------- ----------- ----------
ASSETS UNDER ADMINISTRATION AS AT 31 OCTOBER 2007
Unaudited Unaudited
As at As at Audited
31 31 As at
October October 30 June
2007 2006 Change 2007
£m £m % £m
--------- -------- ------- --------
Assets under Administration (4) 1,223 964 26.8 1,130
--------- -------- ------- --------
(1) New business from long-term savings is calculated on an APE basis in
accordance with the life assurance industry convention by adding new regular
premiums and one tenth of single premiums. Premiums arising in foreign
currencies are translated to sterling at the rates of exchange ruling at the
transaction date.
(2) APE in the period ended 31 October 2007 is presented in section 1 above on
a constant currency basis. Premiums arising in foreign currencies in the period
are translated to sterling at the average rates of exchange applicable to the
period ended 31 October 2007. The principal exchange rates applied are: £1 =
$2.024 and £1 = €1.47.
(3) The geographical split of new business premiums is based on the country of
residence of the policyholder.
(4) Assets under Administration are valued at market values at the relevant
date, using closing exchange rates against sterling. The principal exchange
rates applied at 31 October 2007 are: £1 = $2.05 and £1 = €1.43 (31 October
2006: £1 = $1.90 and £1 = €1.49).
Notes to editors:
• Hansard Global plc is the holding company of the Hansard Group of
companies. The Company was listed on the London Stock Exchange on 18
December 2006. The Group is a specialist long-term savings provider, based
in the Isle of Man.
• The Group offers a range of flexible and tax-efficient investment
products within a life assurance policy wrapper, designed to appeal to
affluent, international investors.
• The Group utilises a low-cost distribution model by selling policies
exclusively through a network of financial services intermediaries,
independent financial advisers and the retail operations of certain
financial institutions (collectively 'Intermediaries'), who provide access
to their clients in more than 170 countries. The Group's distribution model
is supported by an award-winning, multi-language internet platform, and is
scaleable.
• The principal geographic markets in which the Group currently services
Intermediaries and policyholders are the Far East, the Middle East, and
South America in the case of Hansard International Limited, and Western
Europe in the case of Hansard Europe Limited, the Group's two life
assurance companies.
• The Group's objective is to grow its business by attracting new business
and positioning itself to adapt rapidly to market trends and conditions.
The scaleability and flexibility of the Group's operations allow it to
enter or develop new geographic markets and exploit growth opportunities
within existing markets without the need for significant further
investment.
Forward-looking statements:
This announcement may contain certain forward-looking statements with respect to
certain of Hansard Global plc's plans and its current goals and expectations
relating to future financial condition, performance and results. By their nature
forward-looking statements involve risk and uncertainties because they relate to
future events and circumstances which are beyond Hansard Global plc's control.
As a result, Hansard Global plc's actual future condition, performance and
results may differ materially from the plans, goals and expectations set out in
Hansard Global plc's forward-looking statements. Hansard Global plc does not
undertake to update forward-looking statements contained in this announcement or
any other forward-looking statement it may make. No statement in this
announcement is intended to be a profit forecast or be relied upon as a guide
for future performance.
This information is provided by RNS
The company news service from the London Stock Exchange