TIDMHSD
RNS Number : 5806N
Hansard Global plc
10 May 2018
10 May 2018
Hansard Global plc
Trading update for the period ended 31 March 2018
Hansard Global plc ("Hansard" or "the Group"), the specialist
long-term savings provider, issues its trading update for the
quarter ended 31 March 2018 ("Q3 2018"). All figures refer to this
period, except where indicated. Year to date figures refer to 1
July 2017 to 31 March 2018.
Summary
-- Overall for the year to 31 March 2018, new business for
Hansard International Limited ("Hansard International") of
GBP109.8m in PVNBP ("Present Value of New Business Premiums") terms
was broadly in line with the prior year period;
-- New business for Q3 2018 was GBP32.8m, down from GBP38.9m in Q3 2017;
-- New business improved during the quarter in the Middle East
& Africa as we brought new distribution on-line and our
strategic alliance in the UAE continues to grow;
-- Challenges exist in the Far East where increased regulation
has restricted certain distribution channels and caused overall
regular premium business to decline;
-- Single premium business continues to be strong, driven by offshore pensions business;
-- Hansard Europe has received notification of new litigation
associated with fund failures in Italy, adding GBP1.9m to the
Group's contingent liabilities.
Gordon Marr, Group Chief Executive Officer, commented:
"While new business for the past quarter was adversely impacted
by general regulatory developments in the Far East, we remain
positive around the overall opportunity for growth within the
business. In particular we are optimistic that our previously
stated strategy to acquire new market licences will be delivered
upon during this calendar year and for this to be the most
significant catalyst for future growth."
For further information:
+44 (0) 1624 688
Hansard Global plc 000
Gordon Marr, Group Chief Executive
Officer
Tim Davies, Chief Financial
Officer
Email: investor-relations@hansard.com
+44 (0) 203 757
Camarco 4980
Ben Woodford, Kimberley Taylor,
Rebecca Noonan
Hansard Global plc
TRADING UPDATE for the PERIOD ended 31 March 2018
OVERVIEW
The Group continues to focus on the distribution of regular and
single premium products in a range of jurisdictions around the
world, achieving well diversified new business growth.
New Business Flows
New business flows for Hansard International for the quarter and
the nine months ended 31 March are summarised as follows:
Three months Nine months ended
ended
31 March 31 March
2018 2017 % 2018 2017 %
Basis GBPm GBPm change GBPm GBPm change
---------------------- ----- ----- -------- --------- --------- -------
Present Value of New
Business Premiums 32.8 38.9 (15.7%) 109.8 113.8 (3.5%)
Annualised Premium
Equivalent 4.8 5.8 (17.2%) 16.9 17.5 (3.4%)
---------------------- ----- ----- -------- --------- --------- -------
Present Value of New Business Premiums ("PVNBP")
New business flows for Hansard International on the basis of
PVNBP are broken down as follows:
Three months Nine months ended
ended
31 March 31 March
2018 2017 % 2018 2017 %
PVNBP by product GBPm GBPm change GBPm GBPm change
type
------------------ ----- ----- -------- --------- --------- --------
Regular premium 13.9 20.3 (31.5%) 51.8 62.9 (17.6%)
Single premium 18.9 18.6 1.6% 58.0 50.9 13.9%
------------------ ----- ----- -------- --------- --------- --------
Total 32.8 38.9 (15.7%) 109.8 113.8 (3.5%)
------------------ ----- ----- -------- --------- --------- --------
Three months Nine months ended
ended
31 March 31 March
2018 2017 % 2018 2017 %
PVNBP by geographical GBPm GBPm change GBPm GBPm change
area
------------------------ ----- ----- -------- --------- --------- --------
Middle East and Africa 12.7 10.9 16.5% 29.0 34.9 (16.9%)
Rest of World 9.6 11.9 (19.3%) 40.6 38.1 6.6%
Latin America 5.6 5.7 (1.8%) 19.6 14.6 34.2%
Far East 4.9 10.4 (52.9%) 20.6 26.2 (21.4%)
Total 32.8 38.9 (15.7%) 109.8 113.8 (3.5%)
------------------------ ----- ----- -------- --------- --------- --------
Our new business for the year-to-date remains within 3.5% of the
equivalent prior year period (and 26% ahead of the 2016
comparative) as a number of positive factors have been offset by a
number of challenges.
The reported sterling equivalent value of our US dollar premiums
has been reduced during the period by the continued weakening of
the US dollar against sterling which is now down 8% from the start
of the year. The US dollar is our most popular premium paying
currency with over 60% of our business written in this
currency.
The Middle East & Africa has grown as initiatives to replace
distribution which exited the market last year have been
implemented. We recently concluded three new key distribution
agreements in the region and we expect to see additional growth
through these channels.
We also remain enthusiastic about the opportunity with our
strategic partner in the UAE. We continue to see quarter on quarter
improvements in volumes with the relationship now providing a
material contribution to new business in the region.
Latin America remains significantly improved year-to-date and we
are actively pursuing new distribution to continue and expand our
growth in this region.
We have exited certain distribution channels in the Far East
where increased regulation has constrained the ability of our
customers to invest in offshore financial products. This has had a
significant impact to regular premiums in that region. The
remaining parts of the Far East region, including our branch in
Labuan, Malaysia, have shown positive growth.
Single premium business has continued to grow compared to prior
periods as a result of previously indicated improvements to this
product line and our focus on offshore pensions business.
Assets under Administration ("AUA")
The composition and value of AuA is based upon the assets
selected by or on behalf of contract holders to meet their savings
and investment needs. Reflecting the wide geographical spread of
the Group's customer base, the majority of premium contributions
and of AuA are designated in currencies other than sterling. Over
60% of Group AuA are denominated in US dollars.
The total of such assets is affected by the level of new premium
contributions received from new and existing policy contracts, the
amount of assets withdrawn by contract holders (including those
withdrawn from Hansard Europe dac ("Hansard Europe"), which closed
to new business in 2013), charges and the effect of investment
market and currency movements. These factors ultimately affect the
level of fund-based income earned by the Group.
During Q3 2018 AuA fell by GBP54m or 5% (GBP16m or 1.6% decline
year to date), reflecting global stock market declines and the
weakening of the US dollar against sterling. The US dollar on a
year-to-date basis was down 8% from 30 June 2017.
Three months Nine months
ended ended
31 March 31 March
2018 2017 2018 2017
GBPm GBPm GBPm GBPm
------------------------------- -------- -------- -------- --------
Deposits to investment
contracts - regular premiums 14.9 19.6 57.3 61.8
Deposits to investment
contracts - single premiums 22.3 17.6 57.4 48.5
Withdrawals from contracts
and charges (45.4) (37.3) (143.2) (120.4)
Effect of market and currency
movements (46.0) 41.0 12.1 128.5
------------------------------- -------- -------- -------- --------
(54.2) 40.9 (16.4) 118.4
Opening balance 1,087.5 1,001.0 1,049.7 923.5
------------------------------- -------- -------- -------- --------
Assets under Administration
at 31 March 1,033.3 1,041.9 1,033.3 1,041.9
------------------------------- -------- -------- -------- --------
The movement in AuA is split as follows between Hansard
International and Hansard Europe:
Nine months
ended
31 March
2018 2017
GBPm GBPm
-------------------------- --- ------- ------
Hansard International 8.9 121.4
Hansard Europe (25.3) (3.0)
--------------------------------- ------- ------
Increase / (decrease) in
period (16.4) 118.4
--------------------------------- ------- ------
Litigation and policyholder complaints
The Group continues to carefully manage its litigation relating
to the legacy operations of Hansard Europe. Hansard Europe was
notified in April 2018 of a new Italian action being brought
against it by a group of contract holders relating to illiquid
funds which are shortly to be placed into liquidation. As with
other similar litigation, our view remains that we are not
responsible for the investment advice of independent financial
advisors or for the subsequent investment management of those
external funds. Based upon the most recent net asset values
notified to us, the assessed exposure attaching to this new
litigation totals GBP1.9m.
Results for the year ENDing 30 JUNE 2018
New business results for the full-year are scheduled to be
announced on 26 July 2018. Trading results for the full-year are
expected to be announced on 27 September 2018.
Outlook
We anticipate that our exit from certain distribution channels
in the Far East will result in a lower overall total of new
business for this financial year than we were projecting. We also
expect that a lower mix of regular premium business will adversely
impact on the overall margin for the year. In the medium term
however, and in line with our stated strategy, we expect our
pursuit of additional local licences will open up substantial
growth opportunities in the region.
In the Middle East, where we are further progressed with our
strategic re-positioning, we remain enthusiastic about the
opportunity with our strategic partner in the UAE as we continue to
see quarter on quarter improvements in new business with ample
capacity for further growth.
We also expect to communicate and implement initiatives in the
near future to further develop and grow our Latin American and Rest
of World regions.
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, in the case of
Hansard International Limited, and Western Europe in the case of
Hansard Europe dac, the Group's two life assurance companies.
Hansard Europe dac 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 without the
need for significant further investment.
-- Following the closure of Hansard Europe dac to new business
with effect from 30 June 2013, the Group continues to report new
business performance of Hansard International Limited alone within
this document. Reporting of Assets under Administration
incorporates cash flows relating to insurance policies issued by
both Hansard International Limited and Hansard Europe dac.
Forward-looking statements:
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTMMGGKNLFGRZM
(END) Dow Jones Newswires
May 10, 2018 02:00 ET (06:00 GMT)
Hansard Global (LSE:HSD)
Historical Stock Chart
From Apr 2024 to May 2024
Hansard Global (LSE:HSD)
Historical Stock Chart
From May 2023 to May 2024