Insurance services specialist Charles Taylor (CTR) has been working hard to improve its image - by boosting awareness of its services. And those efforts are making a difference - despite the tough trading backdrop, pre-tax profit was held flat at £9.6m - after adjusting for such items as amortisation and non-controlling interests. Moreover, the dividend was maintained, meaning a hefty yield, and net debt fell 13 per cent.
The core professional services business - comprising management, adjusting and insurance support services - grew revenue 5 per cent to £106m. Although a significant fall in the number of large and complex insurance claims meant that profits from the adjusting service fell from £5.8m to £2.7m. However, 2012 was a particularly benign period for big claims and the group has invested in more staff and offices in anticipation of a pick-up in activity this year.
On the management services side, where the company runs insurance services for groups who set up their own insurance cover, new products and services along with growth in the size of the mutuals, helped boost revenue from £34.6m to £39m and profits by 25 per cent to £7.1m. Even so, overall operating profit from professional services unit fell 16 per cent to £9.8m.
Peel Hunt expects 2013 adjusted pre-tax profit of £9.6m, giving adjusted EPS of 19.2p (from £9.6m and 19.4p in 2012).
| CHARLES TAYLOR (CTR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 167p | MARKET VALUE: | £67m | |
| TOUCH: | 165-175p | 12-MONTH HIGH: | 190p | LOW: 132p |
| DIVIDEND YIELD: | 6.0% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 85p* | NET DEBT: | 52% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 80.8 | 9.90 | 19.9 | 13.9 |
| 2009 | 97.0 | 15.7 | 19.0 | 14.6 |
| 2010 | 99.0 | 12.5 | 16.8 | 10.0 |
| 2011 | 102 | 6.38 | 12.8 | 10.0 |
| 2012 | 108 | 7.08 | 16.3 | 10.0 |
| % change | +11 | +27 | - | |
Ex-div: 10 Apr Payment: 24 May *Includes intangible assets of £50.6m, or 125p a share | ||||
