Admiral blows hot and cold

Chief executive Henry Engelhardt elaborated. The hot included record profits at Rastreator and LeLynx, the price comparison businesses in Spain and France. The cold - which seems a little harsh - was that the motor insurer failed to deliver a record profit for the first time since its flotation in 2007. Harsh because the return on equity was still pretty impressive, at 52 per cent - albeit down from 58 per cent a year earlier - while customer numbers grew by 10 per cent to 4.05m. But the decline in headline profits would have been greater without a rise in reserve releases from £94m to £137m.

There are early signs that motor premiums, which have been falling since 2010, are now stabilising. Sensibly, Admiral has concentrated on preserving margins rather than chasing unprofitable growth. Guidewire, a major systems upgrade due for completion this year, may come at just the right time to exploit a recovery in premium rates - although Mr Engelhardt admitted to worrying whether the system, currently in testing stage, would work properly in the UK or France.

There is still plenty to do. Profits were dragged lower by a £15m pre-tax loss from the US compare.com business. Admiral has a 68 per cent stake in the venture, and its share of losses in the current year are expected to be £20m-£30m. The operation, which "can't reduce its cost per quote or cost per sale to a profitable level" - is at number three in Mr Engelhardt's list of top 10 worries (number two is Guidewire, while number one is "irrational competitors" focusing on growth at the expense of profits).

In the UK, competition to the group's price comparison business, Confused.com, remained fierce, and profits fell by a quarter to £15.8m. The UK business accounts for 81 per cent of group turnover, but this is shrinking as the group builds up its overseas operation.

Analysts at Numis are forecasting EPS of 93.3p in 2015.