A £0.7m bad debt provision to account for "potentially irrecoverable" balances due from a broker accounts for much of the slump in pre-tax profit at savings provider Hansard Global (HSD). However, lower fee income following the closure of Hansard Europe to new business in 2013 also contributed to the drop-off in earnings.
Underlying performance was largely in line with expectations and there was some much-needed clarity from management over the future of the group's dividend - the yield from which has, of late, been at levels that begged the question of its sustainability. But the answer was not positive. This year's annual dividend should equal FY2016 at 8.9p a share, but the board has decided to halve payments from there on out, a decision motivated by the need to redirect cash into a stream of new business sales, which were up a third year on year at £74.9m, led by its Middle East and Africa segment.