Hansard Global (HSD) has no problem winning new business. During the 12 months to the end of June 2017, it grew the present value of new business premiums almost a quarter on the previous year. However, while net cash flows before dividend payments were more than triple 2016’s, at £5.8m, management needs more cash to pursue new growth opportunities. It came good on its plan to maintain the final dividend this year, but confirmed it would be halved next year.
Assets under administration by the tax-efficient savings product provider increased 14 per cent to £1.05bn. The Isle of Man-based group – which distributes its products via intermediaries – grew its new business across all its regions. Latin America led the way, with the present value of new business premiums up more than half to £19m. Since its cost base is largely fixed, the uplift in sales pushed new business margins up to 0.9 per cent, from 0.2 per cent in 2016.
After experiencing some difficulty in gaining a trading licence in the United Arab Emirates, the group signed a strategic alliance with a local insurance company for the first time. This allows it to sell products to the large expat community – around 85 per cent of the country’s population.
Analysts at house broker Panmure Gordon expect pre-tax profit of £10m for the 12 months ending June 2018, giving EPS of 7.2p (from £7.7m and 5.6p in FY2017).
| HANSARD GLOBAL (HSD) | ||||
| ORD PRICE: | 86p | MARKET VALUE: | £118m | |
| TOUCH: | 84-86p | 12-MONTH HIGH: | 116p | LOW: 72p |
| DIVIDEND YIELD: | 10.3% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 23p | EMBEDDED VALUE: | 143p | |
| Year to 30 Jun | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) | |
| 2013 | 10.7 | 7.6 | 8 | |
| 2014 | 8.3 | 6 | 8.4 | |
| 2015 | 14.9 | 10.9 | 8.75 | |
| 2016 | 8.4 | 6.0 | 8.9 | |
| 2017 | 7.7 | 5.6 | 8.9 | |
| % change | -8 | -7 | ||
| Ex-div: | 5 Oct | |||
| Payment: | 16 Nov | |||
