– Revenue down 8 per cent on Uk car marketplace weakness
– Pre-tax profit up 7 per cent
– United kingdom automobile a concern but ‘will harm our rivals more’
Investors cheered an in-line set of full-year results from insurance coverage giant Admiral on Wednesday, as the group hailed the ‘year of the baked potato’ – what it described as a ‘comfort food’ set of benefits.
Group revenue ahead of tax was up 7% at £370m (2012: £345m) on turnover of £2.03bn, which was down 8% from £2.22bn in 2012. Earnings per share had been up 10% at 104.6p from 95.1p a yr earlier.
A ultimate dividend payment of 50.6p per share brought the complete spend out to 99.5p, up 10% on 2012.
The final results had been dominated by the overall performance of United kingdom Car Insurance, which accounts for 84% of turnover and 82% of customers. The market place has suffered a cost drop of all around 25% for the duration of the previous 2 many years, paralleled by a drop in claims expenses.
As it centered on reduced premium, decrease chance business, United kingdom Car Insurance contributed to a reduction in United kingdom turnover of 12% to £1,698.9m.
The group admitted if the market place does not turn quickly, the predicament ‘might’ harm Admiral, however it explained this would ‘hurt our rivals earlier and tougher, as they are largely unable to match our mixed ratio’.
Notably, the International Car Insurance business narrowed losses, down from £24.5m to £22.1m 12 months-on-12 months, as income climbed from £162.9m to £187.8m and total premiums written rose from £148.5m to £168.3m.
This marked the initial reduction in losses because the company launched Spanish unit Balumba in 2006, its debut worldwide company, though the reduction was even now higher than the £19m predicted by Numis Securities.
Looking forward, the group stated its medium-term profitability would be drastically influenced by its response to the eventual flip in the Uk cycle.
In the longer-term the group is seeking to the progress made by its non-Uk operations and Uk Household divisions.
Henry Engelhardt, Group Chief Executive Officer, explained: ’2013 was the yr of the baked potato. It was a very good, strong 12 months, some thing on the plate that is appreciated but doesn’t truly grab the spotlight. This is a comfort food set of outcomes.
‘Why the baked potato? Since the year was sound, but not flashy. We made far more money than ever ahead of, we grew consumer numbers a little bit, we launched 1 new overseas company, but there was no development surge, there have been no claims shocks we just went about our company.’
Investors welcomed the benefits as shares rose 4.79% to one,487p by 08:thirty following their announcement.