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Randall & Quilter interim profit boosted by acquisition
6th Sep 2019 12:57
(Sharecast News) - Non-life legacy insurance investor Randall & Quilter posted a jump in interim profit on Friday, boosted by recent acquisitions.
In the six months to the end of June 2019, pre-tax profit rose to £33.1m from £7.8m in the first half of last year. The company said it benefited from the $80.5m acquisition of Global US and its subsidiary, Global Reinsurance Corp of America. This was its largest ever legacy transaction.
Basic earnings per share came in at 19.2p compared to 3.6p and the group saw a 13% increase in net tangible assets per share to 133.2p.
Executive chairman Ken Randall said: "The business continues to perform well with an excellent pipeline of new opportunities in both legacy and program management. The board expects that full year results for 2019 will be in line with market expectations and we remain very positive about our medium and long term prospects, which will benefit from the emerging profits from our fast growing program management business."
Randall said that while the final outcome of Brexit remains unclear, the preparation and plans the company have put in place will enable its European business to continue without material interruption in all likely scenarios, including no deal.
"Our large concentration of US dollar revenues and net assets provides a good measure of protection in the event of ongoing sterling weakness," Randall said.
At 1250 BST, the shares were up 8.9% at 169.95p.
In the six months to the end of June 2019, pre-tax profit rose to £33.1m from £7.8m in the first half of last year. The company said it benefited from the $80.5m acquisition of Global US and its subsidiary, Global Reinsurance Corp of America. This was its largest ever legacy transaction.
Basic earnings per share came in at 19.2p compared to 3.6p and the group saw a 13% increase in net tangible assets per share to 133.2p.
Executive chairman Ken Randall said: "The business continues to perform well with an excellent pipeline of new opportunities in both legacy and program management. The board expects that full year results for 2019 will be in line with market expectations and we remain very positive about our medium and long term prospects, which will benefit from the emerging profits from our fast growing program management business."
Randall said that while the final outcome of Brexit remains unclear, the preparation and plans the company have put in place will enable its European business to continue without material interruption in all likely scenarios, including no deal.
"Our large concentration of US dollar revenues and net assets provides a good measure of protection in the event of ongoing sterling weakness," Randall said.
At 1250 BST, the shares were up 8.9% at 169.95p.