Insurance broker Jardine Lloyd Thompson (JLT) reported more solid growth at the half-year stage - despite a softening premium rate backdrop, organic revenue grew 7 per cent year on year. Moreover, and after stripping out exceptional acquisition and restructuring costs, pre-tax profit jumped 7 per cent to £93.1m.
The core risk and insurance division, which generates three-quarters of group revenue, also grew organic revenue by 7 per cent to £372m, while divisional profit rose 3 per cent to £82.7m. That was helped by a robust performance in emerging markets - Asian revenue soared 16 per cent to £34.8m while Latin America generated a 12 per cent revenue hike. Meanwhile, the smaller employee benefits division is growing faster still - helped by bolt-on acquisitions, revenue there grew 21 per cent to £115m, while trading profit rose 16 per cent to £21.1m. The division's Asian and Latin American operation saw organic revenue rise by 25 per cent and 27 per cent, respectively, while Australian organic revenue jumped 80 per cent. The group's business transformation plan, which commenced in January, is also on track to deliver £12m of annualised savings from 2014.
Broker Numis Securities expects operating profit growth of 11 per cent for the full year, but flat pre-tax profit of £151m and adjusted EPS of 45.4p.
JARDINE LLOYD THOMPSON (JLT) | ||||
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ORD PRICE: | 894p | MARKET VALUE: | £2bn | |
TOUCH: | 891-894p | 12-MONTH HIGH: | 925p | LOW: 717p |
DIVIDEND YIELD: | 2.9% | PE RATIO: | 18 | |
NET ASSET VALUE: | 150p* | NET DEBT: | 66% |
Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2012 | 442 | 82.4 | 26.1 | 9.6 |
2013 | 487 | 85.1 | 27.0 | 10.1 |
% change | +10 | +3 | +3 | +5 |
Ex-div: 4 Sep Payment: 1 Oct *Includes intangible assets of £341m, or 156p a share |