DAR Global PLC

Earnings Release • Nov 10, 2016

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RNS Number : 7981O

Hansard Global plc

10 November 2016

10 November 2016

Hansard Global plc

Trading update for the quarter ended 30 September 2016

Hansard Global plc ("Hansard" or "the Group"), the specialist long-term savings provider, issues its trading update for the period from 1 July 2016 to 30 September 2016 (Q1 FY 2017), except where indicated.

Summary

·   We have continued to deliver significantly increased new business levels compared to the prior financial year;

·   New business for Hansard International Limited ("Hansard International") for Q1 FY 2017 was £33.9m in PVNBP ("Present Value of New Business Premiums") terms, approximately 73% higher than Q1 of the prior year and 4% higher than the final quarter of FY 2016;

·    The Middle East & Africa and Rest of World regions continue to be the key drivers of this growth, in line with the continued implementation of our strategy;

·     Assets under administration have increased since the last quarter by £58m or 6% to £982m.

Gordon Marr, Group Chief Executive Officer, commented:

"We are pleased that our increased levels of new business continue to demonstrate the sustainability of the trend established over the past 12 months and it is particularly encouraging to achieve further growth in comparison with the final quarter of the 2016 financial year. Despite global political and economic uncertainties ahead, we are confident of making further progress on our strategic goals and delivering continued growth during the remainder of the year."

For further information:

Hansard Global plc	+44 (0) 1624 688000
Gordon Marr, Group Chief Executive Officer
Tim Davies, Chief Financial Officer
Bell Pottinger	+44 (0) 20 3772 2500
Daniel de Belder
Duncan Mayall

Hansard Global plc

NEW BUSINESS RESULTS FOR THE quarter ENDED 30 SEPTEMBER 2016

OVERVIEW

The Group continues to focus on the distribution of regular and single premium products in a range of jurisdictions around the world.

In Present Value of New Business Premiums ("PVNBP") terms, levels of new business in Q1 FY 2017 were 73% ahead of Q1 FY 2016 and 4% ahead of Q4 FY 2016 which is generally the strongest quarter of the year.

The Middle East & Africa and Rest of World regions continued to be the most successful sources of new business.  New relationships established in Latin America have started to contribute new business and we expect these to develop further over the course of the year.

The Group has traded profitably during the period and remains strongly capitalised.

New Business Flows

New business flows for Hansard International for Q1 FY 2017 on our key internal metrics are summarised as follows:

					Quarter ended
					30 September
					2016	2015	%
Basis					£m	£m	change
Present Value of New Business Premiums					33.9	19.6	73.0 %
Annualised Premium Equivalent					5.3	3.2	65.6 %

·    Present Value of New Business Premiums ("PVNBP")

New business flows for Hansard International for Q1 FY 2017 on the basis of PVNBP are analysed in the following two tables as follows:

					Quarter ended
					30 September
					2016	2015	%
PVNBP by product type					£m	£m	change
Regular premium					20.5	12.8	60.2 %
Single premium					13.4	6.8	97.1 %
Total					33.9	19.6	73.0 %

					Quarter ended
					30 September
					2016	2015	%
PVNBP by geographical area					£m	£m	change
Middle East and Africa					12.0	4.8	150.0 %
Rest of World					10.7	5.5	94.6 %
Far East					7.4	5.8	27.6 %
Latin America					3.8	3.5	8.6 %
Total					33.9	19.6	73.0 %

Assets under Administration ("AUA")

The value of AuA is based upon the assets selected by or on behalf of contract holders to meet their needs from time to time. Reflecting the wide geographical spread of the Group's contract holders, the majority of premium contributions and of AuA are designated in currencies other than sterling.

The value of AuA is underpinned by a steady flow of regular contributions from new and existing contract holders around the world.  Net withdrawals are typically experienced in Hansard Europe, which closed to new business in 2013.

In aggregate, there was an increase in AuA of £58.3m in Q1 FY 2017 to £981.8m as at 30 September 2016.  The increase was driven predominantly by investment market gains, together with further weakening of sterling against the US dollar. 

				Quarter ended
				30 September
				2016	2015
				£m	£m
Deposits to investment contracts - regular premiums				19.3	17.4
Deposits to investment contracts - single premiums				14.0	6.5
Withdrawals from contracts and charges				(39.8)	(57.4)
Effect of market and currency movements				64.8	(50.5)
Increase / (decrease) in period				58.3	(84.0)
Opening balance				923.5	907.1
Assets under Administration at 30 September				981.8	823.1

The movement in AuA is split as follows between Hansard International and Hansard Europe:

				Quarter ended
				30 September
				2016	2015
				£m	£m
Hansard International				53.0	(53.0)
Hansard Europe				5.3	(31.0)
Increase / (decrease) in period				58.3	(84.0)

Litigation

The Group continues to carefully manage its litigation relating to the legacy operations of Hansard Europe.  There have been no material changes since the last announcement to the value of writs advised to the Group.  One new writ has been received with a value of under £0.1m, while another writ, also for under £0.1m, has been successfully concluded with no liability for the Group.  This conclusion was reached after a case under appeal in Italy ruled that Hansard had no case to answer.  We are pleased with this result as it is the first case to fully work its way through the court appeal system.

Results for the HALF-year ENDing 31 DECEMBER 2016

New business results for the half year ending 31 December 2016 are expected to be announced on 26 January 2017.  Trading results for the half year are expected to be announced on 23 February 2017.

Outlook

We maintain our confidence for continued growth during the remainder of the financial year although the rate of growth in comparison to prior year periods will likely slow given the significant step up in new business levels from Q2 FY 2016.  There may be global economic uncertainty and market volatility associated with political developments in the US and UK but these are not expected to impact directly on our distribution capabilities.  We therefore remain optimistic that we can continue to grow business levels through the on-going delivery of our strategy across the regions in which we operate. 

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 contract wrapper, designed to appeal to affluent, international investors.

·   The Group utilises a controlled cost distribution model by selling policies exclusively through 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 scaleable.

·    The principal geographic markets in which the Group currently services contract holders and financial advisors are the Middle East, the Far East and Latin America, in the case of Hansard International Limited, and Western Europe in the case of Hansard Europe Designated Activity Company, the Group's two life assurance companies.  Hansard Europe Designated Activity Company ceased accepting 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 scaleability 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 Designated Activity Company 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 contracts issued by both Hansard International Limited and Hansard Europe Designated Activity Company.

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.

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