Insurance specialist Charles Taylor (CTR) has been working hard to improve brand awareness across its complex array of products, and the results are beginning to show through. The price, though, has been an increase in working capital and costs relating to restructuring and hiring more people. Administrative expenses were up by 6 per cent and net debt by £2.9m to £32.4m.
Crucially, the group’s core adjusting business performed well last year, and profits jumped 78 per cent to £4.8m. This reflected a steady flow of larger and more complex claims work won across all sectors, despite a relatively benign claims environment. Expanding the office network geographically also helped: a number of claims were secured as a direct result of having staff available in the right locations.
On the management-services side, the group’s Standard Club, which provides protection and indemnity insurance for 10 per cent of world shipping, saw insured tonnage grow by 5 per cent, and the group also secured an increase in management fees.
Analysts at Peel Hunt are forecasting adjusted pre-tax profits of £10.5m and EPS of 20.8p for 2014 (from £10m and 20.1p in 2013).
| CHARLES TAYLOR (CTR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 256p | MARKET VALUE: | £ 106m | |
| TOUCH: | 256-265p | 12-MONTH HIGH: | 287p | LOW: 156p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 93p* | NET DEBT: | 53% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 97 | 15.7 | 19.0 | 14.6 |
| 2010 | 99 | 12.5 | 16.8 | 10 |
| 2011 | 102 | 6.4 | 12.8 | 10 |
| 2012 | 108 | 6.6 | 15.1 | 10 |
| 2013 | 114 | 6.9 | 14.2 | 10 |
| % change | +6 | +5 | -6 | - |
Ex-div: 09 Apr Payment:23 May *Includes intangible assets of £53m or 127p a share | ||||
