Shares in insurance services provider Charles Taylor (CTR) fell sharply following the release of its 2017 results. While the statutory numbers make for unpleasant reading, the underlying figures are far more palatable, with adjusted EPS up 11.1 per cent to 24.73p. The largest reason for the discrepancy was the amortisation of acquired intangible items, as the group continues to build scale, and expand its service offering.
Acquisitions had a major impact in other ways, too. The insurance services division saw revenue increase 66 per cent following the first full-year contribution from its CEGA acquisition, while the adjusting services business is expected to benefit from last year's deal to acquire Criterion, a loss adjusting business focused on the UK high-net-worth insurance sectors. Acquisitions and other investments have led to a 53 per cent increase in the net debt figure, but this has recently been refinanced and its facilities increased.
Analysts at Peel Hunt are forecasting adjusted pre-tax profits of £17.9m, giving EPS of 23.4p for 2018 (from £15.3m, and 24.7p last year).
| CHARLES TAYLOR (CTR) | ||||
| ORD PRICE: | 285p | MARKET VALUE: | £197m | |
| TOUCH: | 272-285p | 12-MONTH HIGH: | 298p | LOW: 220p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 111p* | NET DEBT: | 73% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 114 | 6.9 | 12.6 | 8.85 |
| 2014 | 122 | 9.7 | 17.8 | 9.42 |
| 2015 | 143 | 12.8 | 18.6 | 10.00 |
| 2016 | 169 | 10.7 | 15.9 | 10.50 |
| 2017 | 211 | 7.4 | 13.1 | 11.01 |
| % change | +25 | -31 | -17 | +5 |
| Ex-div: | 26 Apr | |||
| Payment: | 25 May | |||
| *Includes intangible assets of £108m, or 156p a share | ||||
