Results for the year ended 30 June 2021
Profit and earnings per share up 9% and 13% respectively, dividend maintained
Hansard Global plc (“Hansard” or “the Group”), the specialist long-term savings provider, issues its results for the year ended 30 June 2021 (“FY 2021”).
|FY 2021||FY 2020||% Change|
New business sales – PVNBP 1 basis
IFRS profit before tax
Recommended final dividend per share 2
IFRS earnings per share
Assets under Administration
Value of In-Force
1 Present Value of New Business Premiums
2 Subject to approval at the AGM
GRAHAM SHEWARD, GROUP CHIEF EXECUTIVE OFFICER, COMMENTED:
“I am pleased to present Hansard’s full year results for the 2021 financial year. Our new business, profit before tax and assets under administration were all up compared to FY 2020 despite the on-going challenges presented by Covid-19. I would like to thank all our employees and distribution partners for their hard work and resilience in delivering this result.
We have continued to make progress with our strategic initiatives although the launch of our proposition in Japan is subject to the lifting of the current Covid-related restrictions. Once these are lifted, we believe this initiative can deliver significant growth for the Group.
Given these results and our current financial outlook, we are delighted to be in a position to maintain our dividend in line with last year.”
As previously announced, our new business levels were £173.0m on a Present Value of New Business Premiums (“PVNBP”) basis, 8.3% higher than FY 2020. Each of our regions achieved positive growth as we saw increased levels of high net worth contributions being made.
IFRS profit before tax for the year was £5.1m, up 8.5% from £4.7m in FY 2020. Excluding litigation defence costs and other non-recurring provisions, underlying profit was £6.8m compared with £6.2m in FY 2020.
Fee and commission income was £50.5m for the year (FY 2020: £49.5m) as increased fee income in Hansard International offset lower fee income in Hansard Europe which continues to run-off since closing to new business in 2013.
Administrative expenses, exclusive of litigation and non-recurring items, were £22.5m (FY 2020: £23.0m). Investment in our Japanese branch was offset by prudent cost management across a range of areas.
VIF represents the present value of expected future shareholder profits less the present value cost of holding capital required to support the in-force business. VIF totalled £145.8m as at 30 June 2021 compared to £147.9m at 30 June 2020.
While positive on a marginal cost basis, New Business Margin calculated on an EEV basis was negative 0.5% for the year as compared to negative 0.1% in FY 2020. This was primarily due to business mix and changes in economic and operating assumptions. We expect the primary drivers for margin improvement to be a successful launch of our new product into the Japanese market and the cost savings that will follow the implementation of our new IT systems.
During the past financial year, the primary focus has continued to be on our two most significant near-term strategic initiatives:
- Bringing to market our locally-licensed investment product in Japan; and
- Upgrading and streamlining our administration systems and IT infrastructure.
We have completed the internal development of our Japanese product. In order to launch with our first distribution partner, we are dependent on the Covid-19 restrictions in Japan being lifted. It is our strong intention to go to market before the end of 2021. We continue to expect this initiative to deliver significant growth in the 2022 financial year.
Our new systems are ready to on-board new business from the Japanese product and we continue to work on enabling it for our existing products and ultimately for a full migration by the end of 2022.
The Board has proposed a final dividend of 2.65p per share, the same level as last year. The Board considers this a prudent decision in the current environment.
This dividend, if approved by the shareholders at the Annual General Meeting on 3 November 2021, represents a total dividend of 4.45p (2020: 4.45p) per share in respect of the financial year. Such dividend will be paid on 11 November 2021 to shareholders on the register on 1 October 2021. The associated ex-dividend date is 30 September 2021.
The Group continues to manage carefully its litigation exposures relating to the legacy operations of Hansard Europe. We continue to believe we have strong defences against the claims being made.
Exposures from outstanding writs were £22.7m at 30 June 2021 compared to £23.4m at 30 June 2020. Settlement provisions of £0.4m (2020: £0.1m) have been made as at 30 June 2021 where we expect to make settlements for lower value cases.
During the year, the Group successfully defended sixteen cases with net exposures of approximately £1.6m (2020: nine cases with net exposures of approximately £0.6m), ten of which have been appealed by the plaintiffs. These successes affirm confidence in the Group’s legal arguments. Our policy is to maintain contingent liabilities even where we win cases in the court of first instance if such cases have been subsequently appealed.
New business levels to date in Q1 FY 2022 are broadly in line with those of the prior year. There have been no significant post balance sheet events to report.
NEXT TRADING UPDATE
The first trading update in respect of the year ending 30 June 2022 is expected to be published on 4 November 2021.
FOR FURTHER INFORMATION:
|Hansard Global plc
Graham Sheward, Group Chief Executive Officer
Tim Davies, Chief Financial Officer
|+44 (0) 1624 688 000|
Ben Woodford, Hugo Liddy
|+44 (0) 7990 653 341|
NOTES TO EDITORS:
- Hansard Global plc is the holding company of the Hansard Group of companies. The Company was listed on the London Stock Exchange in December 2006. The Group is a specialist long-term savings provider, based in the Isle of Man.
- The Group offers a range of flexible and tax-efficient investment products within a life assurance policy wrapper, designed to appeal to affluent, international investors.
- The Group utilises a controlled cost distribution model via a network of independent financial advisors, and the retail operations of certain financial institutions who provide access to their clients in more than 170 countries. The Group’s distribution model is supported by Hansard OnLine, a multi-language internet platform, and is scalable.
- The principal geographic markets in which the Group currently services contract holders and financial advisors are the Middle East & Africa, the Far East and Latin America. These markets are served by Hansard International Limited and Hansard Worldwide Limited.
- Hansard Europe dac previously operated in Western Europe but closed to new business with effect from 30 June 2013.
- The Group’s objective is to grow by attracting new business and positioning itself to adapt rapidly to market trends and conditions. The scalability and flexibility of the Group’s operations allow it to enter or develop new geographic markets and exploit growth opportunities within existing markets often without the need for significant further investment.
This announcement may contain certain forward-looking statements with respect to certain of Hansard Global plc’s plans and its current goals and expectations relating to future financial condition, performance and results. By their nature forward-looking statements involve risk and uncertainties because they relate to future events and circumstances which are beyond Hansard Global plc’s control. As a result, Hansard Global plc’s actual future condition, performance and results may differ materially from the plans, goals and expectations set out in Hansard Global plc’s forward-looking statements. Hansard Global plc does not undertake to update forward-looking statements contained in this announcement or any other forward-looking statement it may make. No statement in this announcement is intended to be a profit forecast or be relied upon as a guide for future performance.
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regime.
Legal Entity Identifier: 213800ZJ9F2EA3Q24K05
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