The new Prudential has no European business. It will exclusively be focused on Asian and US operations. The UK business was listed separately. Without the mature markets, the growth potential of Prudential is important in Asia, boosted by the low penetration rate. In the US, and after two years of adaptation to the new regulatory framework, the business should benefit gradually from its diversification strategy.
Companies: Prudential plc
Prudential announced an operating profit of £2,024m (up 14% like-for-like and 21% as reported) for its continuing operations, excluding M&GPrudential. Even the profitability of the “new” Prudential is driven by Asian operations. The demerger of the group is expected to be completed in Q4 19.
M&GPrudential announced its strategy a few months before the expected split of the insurer. The insurer will be structured into business units: Savings & Assets management and Heritage. While a development strategy will be implemented in the first BU, the large With-Profit business of the Heritage unit will be closed to new customers and managed by a specialised company (Diligent). The earnings and the capital position of M&GPrudential are likely to be fragile and would depend on the updates for
Prudential announced operating profit of £4,827m (up 6% lfl) and net profit at £3,013m (up 30% lfl). Like other UK Life insurers, Prudential benefited from new longevity assumption changes (£441m). The Asian business was the major contributor to earnings (c. 38%) as the US operations were hit by equity market movements. The demerger process is progressing well. The insurer announced African acquisitions in Cameroon, Ivory Coast and Togo, but we do not expect a significant impact on the group’s f
Prudential announced operating profit of £2,405m (up 9% lfl). All business units posted improved earnings: +14% for Asia (£1,016m), USA (+2% to £1,002m) and M&G Prudential (+4% at £778m). The planned demerger of M&G Prudential from the group, which will result in two separately-listed companies, is progressing well. The insurer’s status of a good dividend payer is confirmed with an interim dividend of 15.67p/share, up 8%.
Prudential announced operating profit of £4,699m (up 6% lfl) and net profit at £2,390m (up 24% lfl). It also announced a major event: the demerger of M&G Prudential from Prudential plc. to focus on regions with extreme rapid growth. M&G will have the opportunity to improve its profitability through more control over its capital allocation. The insurer’s status of a good dividend payer should be kept thanks to the cash generated by the retained businesses.
Prudential’s 9M 17 Life new business profit increased by 17% to £2,469m. The Asian business posted a growing new business profit increase of 15% lfl (up 24% as reported) to £1,616m. APE sales increased by 5% (up 14% as reported). Eastspring AuM reached £44.3bn. In the USA, Jackson’s new business profit increased by 17% (up 28% as reported) to £619m. In the UK & Europe, M&G Prudential delivered external asset management net inflows of £9.9bn. In addition, continued demand for risk-managed solutio
Prudential announced an IFRS operating profit of £4,256m, up 7% at AER (-2% at CER) relative to 2015. The major contributor to operating profit is the US division (£2,030m), while the Asian and UK businesses stood at £1,644m and £828m, respectively. EEV new business profit grew by 18% to £3,088m: £2,030m (+18% yoy) from Asia, £790m (-2% yoy) from the US and £268m (+33% yoy) from the UK. APE sales increased by 16% to £6,320m, led by Asia (+33% yoy at £3,599m) and the UK (+33% yoy to £1,160m). In
Prudential is recovering on markets with a 3-month performance of more than 7%. Despite the sharp decrease in H1 16 EPS (-52% to 26.9p), IFRS operating profit is positive with a 6% decrease at CER to £2,059m. EEV new business profit grew by 8% to £1,260m. The group’s underlying free surplus generation increased by 13% to £1,609m and cash remitted by business units rose by 5% to £1,118m. Regarding the performances of the business units, the British insurer continued to perform well in the US mark
Mixed messages from UK and EU governments already highlight a potential for on-going political risk, with any sector volatility accentuated by Solvency II. With significant value in the sector we would look to now buy shares with strong fundamentals to be confirmed by upcoming results.
Companies: ALV CS PRU LGEN
We have repositioned the portfolio, price targets and ratings to allow for accentuated regulatory risk from on-going capital market volatility.
Companies: AGN ALV AV/ CS G LGEN PRU ZURN SLA
Prudential announced an IFRS operating profit of £4,007m, up 22% at CER. The major contributor to operating profit is the US division (£1,691m), while the Asian and UK businesses stood at £1,209m and £1,167m, respectively. EEV new business profit grew by 20% to £2,617m. All business units contributed to this growth, with £1,490m (+28 yoy) from Asia, £809m (+8% yoy) from the US and £318m (+23% yoy) from the UK. APE sales increased by 17% to £5,607m, led by Asia where APE sales were 26% higher at
We expect a solid set of results next week, with the Asian businesses demonstrating the resilience of Prudential’s distribution and product model in the region in the face of market volatility. We reduce our price target in line with the rest of the sector, however, we retain out BUY rating.
Prudential recorded 9M 15 new business profit of £1,764m, +13% on a CER basis (+17% on an AER basis). Double-digit growth was also observed in new business APE sales in Life insurance in Asia (+27% to £2,021m) and the UK (+26% to £613m), however there was a 5% decline in the US to £1,278m.
In Asia, new business profit increased by 24% to £976m at CER (+26% at AER), driven by APE sales growth. For Q3, APE sales increased 20% to £655m. Concerning the asset management business, Eastspring Investm
Prudential announced an IFRS operating profit of £1,881m in H1 15, up 17% at CER. EEV new business profit grew by 12% to £1,190m. The group’s underlying free surplus generation increased by 12% to £1,418m and cash remitted by business units rose by 10% to £1,068m. Regarding the performances of the business units, the British insurer continued to perform well in the US market, focusing on variable annuities with an operating profit of £834m. In the UK, there was a 25% improvement in APE sales to
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Ramsdens interim results highlight the resilience of the business model. Despite the prolonged UK lockdown and international travel restrictions materially impacting the business, we believe a pre-tax loss of only £0.1m was a great result. Moreover, the balance sheet remains strong with net assets up £0.5m HoH to £35.5m and net cash at £15m. While FY2021 has been tough due to COVID-19, management remain confident and are positioning the business for growth with a pipeline of six new stores, incl
Companies: Ramsdens Holdings PLC
NextEnergy Solar Fund’s full year results announcement shows a business continuing to outperform on development, output and pricing. The portfolio now stands at 814MW and the company has already reached its targeted subsidy free capacity of 150MW. A pipeline of international and battery storage opportunities gives NESF considerable diversification potential. With a target dividend of 7.16p for FY 22, NESF continues to offer a well-supported, RPI-linked income stream.
Companies: Nextenergy Solar Fund
As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
Companies: AMYT ARBB ARW BAG BEG BONH BWNG CWK DNK EML EPWN FBD FA/ GPH GSF GNC HUW IGC INSE KAPE KP2 MMAG NRR NESF OTMP ROL RUA SEN SUR TON TOU TXP TGL VLS WINK
Trident has announced the appointment of a new Non-Executive Chairman. Paul Smith, an ex-Glencore senior executive will join the company on 21st June. Mr Smith has made an immediate £1m equity investment in Trident at a premium and retains the right to make a further £1m investment for a total proposed investment of £2m.
Companies: Trident Royalties Plc
What’s new: Full year results were ahead of our March 2021 forecasts, as set out in the 20 April trading update.
- AuM rose 35% over the year to £9.0bn on 31 March 2021;
- Net inflows added £755m, with 2H net inflows of £427m 30% higher than 1H net inflows of £328m; annualised growth rose from 10% to 11.4%;
- Revenue rose 9.3% to £23.35m (6% above Zeus estimate: £22.0m);
- Adj EBIT rose 25.6% to £11.4m (13% above Zeus estimate: £10.1m);
- Adj diluted EPS rose 22.8% to 14.7p (12% abov
Companies: Tatton Asset Management Plc
Palace Capital’s (PCA) FY21 results were robust, with a clear improvement in the second half. With a good level of rent collection continuing, Q421 DPS was increased by 20%, to a level that management hopes to at least maintain through FY22. Importantly, the flagship Hudson Quarter (HQ) development in York completed in April, on budget. We expect HQ to be a significant driver of forecast increasing returns and deleveraging.
Companies: Palace Capital plc
Augmentum Fintech’s (“AF”) disciplined approach and diversified portfolio has delivered value uplift. A number of follow-on rounds and a maiden exit (Dext) added 14p to the NAV – now standing at 130.4p; +12% yoy and 9% in H2 alone. £31m capital has been deployed since Mar-20, including 4 new investments. There is a significant pipeline of new opportunities (£924m) with £144m (across 24 deals) in active development. In order to pursue these, AF has announced that it is seeking to raise at least £
Companies: Augmentum Fintech
The repeal of the Berlin rent cap (the ‘Mietendeckel’), ruled unconstitutional, is a significant positive for Phoenix Spree Deutschland (PSD). It allows a resumption of its core reversionary rent strategy, providing greater flexibility in the extraction of the value embedded in the portfolio. With a continuing discount to net assets, the board has stepped up the share repurchase programme, aiming to ensure that the share price better reflects its view of intrinsic value and the improved outlook.
Companies: Phoenix Spree Deutschland Fund
Despite the turbulence in power prices triggered by the pandemic, NextEnergy Solar Fund (NESF) achieved its dividend target of 7.05p for the financial year. The 2022 dividend target was increased in line with RPI to 7.16p per ordinary share for the year ended 31 March 2022, payable quarterly. We believe given the sharp increase in power prices and the hedging strategies used by NESF, cashflow is likely to be significantly higher over the next two to three years than what is incorporated in NESF’
Trident Royalties Plc (AIM: TRR) has, this morning, announced the appointment of Paul Smith as Non-Executive Chairman. Alongside the appointment Mr Smith will invest up to £2 million into the company, of which £1 million will be an immediate subscription at 40p/ share (representing a 4% premium to the 5-day VWAP), with up to a further £1 million at the same price within 12 months. The current Chair, James Kelly, will remain on the board as a Non-Executive Director. Non-Executive Director Mark Po
Final results show impressive growth and strong operating margins; +5% ahead of our recently upgraded forecasts – with challenges posed by COVID navigated successfully. FuM is growing very strongly. Flows have recovered over the last 12m and continue to build, hitting £9.5bn post-period end already. Management has outlined an aspiration to reach £15bn FuM in 3 years. We leave headline forecasts unchanged, but see upside as FuM continues to grow. With scope to double the business in the medium te
Companies: M&G Plc
Urban Logistics REIT (“ULR”) has delivered a watershed year: doubling the portfolio with a disciplined approach focusing on value-add opportunity through reversion and regear. Finals show rental income doubling from acquired assets, with recurring EPS in line with our forecast. EPRA NAV was 6% ahead of N+1Se, as valuation yields tightened. The manager has secured a further c.£150m pipeline of similarly attractive assets. We make a modest upgrade to EPRA NAV on better valuation. We see sustained
Companies: Urban Logistics REIT plc
Tatton’s FY21 results highlight strong momentum in the business. Current AUM inflows have returned to pre-Covid levels and now average £100m per month, with the £9.0bn AUM milestone reached on 31 Mar (subsequently surpassed, reaching £9.5bn on 15 June). That translated to 35% AUM growth for FY21 (AUM 31 Mar 20: 6.7bn)
Tavistock Investments Plc (“Tavistock”) consists of Tavistock Wealth (an investment management business) and Tavistock Advisory (several financial advisory businesses). The Company has announced the sale of Tavistock Wealth for up to £40m which compares extremely favourably to the £16m Group market capitalisation prior to the announcement. Tavistock also provided a trading update confirming that H2 2021 (year end March) followed the strong H1 performance. Full year underlying EBITDA of £2.77m (+
Companies: Tavistock Investments PLC