Jardine Lloyd Thompson (JLT) pushed underlying pre-tax profits ahead by 3 per cent last year to £183m. Given softening premium rates and adverse currency movements, this was a creditable performance from the insurance broker.
Total revenue grew 13 per cent - or 18 per cent at constant exchange rates - of which around two-thirds resulted from acquisitions made during the year. However, underlying margins fell from 18.9 to 17.8 per cent as currency movements trimmed profits by £11.1m. There was also the added cost of building a speciality insurance business in the US, which racked up expenses of £5.2m. Without these two items, JLT reckons that margins would have been little changed.
Total revenues from the employment benefits division grew by 11 per cent, boosted by the acquisition of Ensign Pensions Administration in April. Following this and several major client wins, JLT is now the largest administrator of private sector pensions in the UK. Net debt was higher than last year, but is expected to fall back following the sale of JLT's shareholding in its French associate for £82m.
Analysts at Numis Securities are forecasting full-year pre-tax profits of £197m and EPS of 58.9p.
| JARDINE LLOYD THOMPSON (JLT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 938p | MARKET VALUE: | £2.1bn | |
| TOUCH: | 936-938p | 12-MONTH HIGH: | 1,096p | LOW:815p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 132p* | NET DEBT: | 155% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 0.74 | 119 | 41.8 | 22.5 |
| 2011 | 0.82 | 134 | 40.7 | 24.0 |
| 2012 | 0.88 | 152 | 46.7 | 25.5 |
| 2013 | 0.98 | 155 | 46.6 | 27.2 |
| 2014 | 1.10 | 160 | 47.9 | 28.9 |
| % change | +13 | +3 | +3 | +6 |
Ex-div: 2 Apr Payment: 6 May *Includes intangible assets of £562m, or 257p a share | ||||
