Hansard Global posts modest FY growth with second half overheads

Long-term savings and financial services operator Hansard Global plc (LON: HSD) reported full-year growth, with an impressive first half weighed down by legal and development expenditure on Japanese and European projects in the second half.

New business for the year ended 30 June 2019 was £155.9 million in Present Value of New Business Premiums terms, up 6.3% compared to £146.6 million for FY 2018. During the fourth quarter, new business was up from £36.8 million to £47.6 million between Q4 2018 and Q4 2019.

Hansard Global added that its venture in teh UAE delivered stong growth. Assets Under Administration rose to £1.08 billion at 30 June 2019, in line with market movements.

Hansard Global comments

Gordon Marr, Group Chief Executive Officer, commented:

“We are delighted to have achieved a 6% growth in sales in the 2019 financial year given the amount of regulatory change taking place in our market. While we have incurred a number of costs for the full year to support future growth and improve operational efficiency, our implemented strategy in the UAE is proving a significant success and we look forward to capitalising on our recently announced licence in Japan during the course of the current financial year.”

On its FY performance, the Company said,

“We are guiding that profits for the second half of FY 2019, while positive, will be significantly lower than those reported for H1 2019. The reasons for this include previously announced initiatives such as the development costs for a new administration system and licensing and development costs for our Japanese proposition, together with increased litigation defence costs, lower surrender charge income from contractholder withdrawals and lower fee income from Hansard Europe.”

Investor notes

Following the update on Q2 costs, the Company’s shares were down 3.93% or 1.75p to 42.80p a share 25/07/19 11:40 BST. The Company currently has a dividend yield of 10.40% and a p/e ratio of 9.09.

Elsewhere in asset and investment management, there have been updates from; AJ Bell PLC (LON: AJB), Intermediate Capital Group plc (LON: ICP), Highcroft Investments plc (LON: HCFT) and City of London Investment Group PLC (LON: CLIG).

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Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.