Chesnara PLC (LSE:CSN) CEO Steve Murray talked to Proactive's Stephen Gunnion about the company’s strong 2024 full-year results, highlighting robust cash generation and consistent dividend growth.
Murray highlighted that Chesnara generated £60 million in cash over the year, providing strong dividend coverage and supporting its 20-year track record of uninterrupted dividend growth. The business also increased its overall value and maintained a strong solvency position.
The interview also covered Chesnara’s acquisition strategy, with Murray detailing the second Canada Life deal, which delivered an uplift in economic value to £11 million—higher than the £8 million initially expected—off a £2 million consideration. He explained that Chesnara currently holds around £200 million in acquisition firepower, supported by a solvency capital ratio of 203%.
Murray described the current M&A pipeline as “positive,” noting that a reduction in private equity competition is opening up new opportunities in the UK and Benelux. He also commented on broader macroeconomic conditions, noting that despite some volatility, Chesnara’s long-term outlook remains stable due to natural hedges and long-duration contracts.
Looking ahead to 2025, Murray reiterated Chesnara’s confidence in maintaining dividend growth, underpinned by strong visibility on future cash flows well above required commitments.
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