Charles Taylor Consulting plc ("Charles Taylor", the "Company" or the "Group")
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Charles Taylor Consulting plc
Interim Management Statement
Charles Taylor Consultingplc (LSE: CTR), a leading international provider of professional servicesto clients in the global insurance market, today announces its interim management statement covering the period from 1 January 2012 to 14 May 2012 ("the period").
Charles Taylor's focus is on delivering insurance services globally. Our core business is providing highly technical, specialised professional services which comprise Management Services, Adjusting Services and Insurance Support Services to the insurance market. The Company also owns and manages run off insurance companies which are closed to new business.
We are implementing our strategy to identify and capture profitable growth in the Company's core professional services businesses by building on the Group's strong fundamentals. As announced in our annual report we have moved our investment management, captive management and specialty risk businesses from the Management Services business to the Insurance Support Services business and are reporting performance for the period under this new structure.
Results for the period are in line with the Board's expectations, and our expectations for the full year are unchanged.
The Group's financial position is sound and net debt at 31 March 2012 reduced to £32.6m from £34.0m at 31 December 2011. With our main bonus and final dividend payments occurring in April and May respectively, we anticipate that this figure will increase temporarily over the second quarter.
The Management Services business provides end-to-end management of mutual insurance companies. We deliver a complete outsourced management service covering every aspect of the companies' operations from the management of underwriting and claims and the provision of regulatory, accounting and administrative services, to corporate governance and company secretarial services. In the period, the business performed slightly better than expected.
The Adjusting Services business provides loss adjusting services across four main sectors: energy, aviation, non marine and marine, which includes average adjusting for shipowners. The business primarily focuses on larger and more complex commercial losses arising from major insured incidents and claims. The business performed as expected for the period. The overall level of instructions varied between the business lines, with revenue in marine, aviation and non marine ahead of last year and energy slightly less active. The initiative to drive down the business's working capital requirements is continuing to deliver positive results,with cash collections well ahead of the same period last year.
Insurance Support Services
The Insurance Support Services business provides professional services which enable Charles Taylor's clients to select the specific stand-alone services they require, including outsourced insurance support services, insurance company run-off services, investment management, captive management and specialty risk management. Performance for the period has been slightly above expectations.
Insurance Companies Run-off
The Insurance Companies Run-off business owns insurance companies which are closed to new business and runs off their liabilities in an orderly manner. The business has performed slightly below expectations, although because of large non-controlling interests this will have little impact on Group earnings. The transfer of the Alico business into our existing life company on the Isle of Man is now expected to take place in the third quarter, which will enable the offshore business to release cash.
An update on our strategy
The potential demand for professional services offered by the Group is substantial. Charles Taylor enjoys leadership positions in a number of business areas, notably mutual insurance management, larger and more complex insurance adjusting, claims management and outsourced insurance services in the Lloyd's market. We also have strong niche offerings in other related professional services. The Company's strategic approach is to seek organic growth by capitalising on its areas of strength through offering related services to clients, by building niche businesses to leadership positions, and by fulfilling the unrealised potential for cross-referral and joint working across the Group.
During the period the Group made good progress, implementing key elements of our professional services business strategy. We have also been developing and rolling out a new corporate identity, including the proposed change of the Group's name to Charles Taylor plc, which will be subject to a vote at the annual general meeting.
Commenting, David Marock, Group Chief Executive Officer, said:
"2012 has started well for Charles Taylor. We have taken important steps to implement our strategy to deliver long term growth in our Professional Services businesses and, as planned, have also successfully refocused our run-off business on the niche offshore life insurance run-off sector. We are well positioned to achieve our vision to become the professional services provider of choice to the global insurance market and I remain excited about the Group's future prospects."
Emma Kane/Rebecca Sanders-Hewett/Adam Leviton/ David Ison
020 7566 6720
Notes to Editors:
About Charles Taylor Consulting plc
· Charles Taylor Consulting plc, headquartered in London, is a leading international provider of professional services to clients in the global insurance market. The Group has been providing Professional Services to insurance clients since 1885 and today has 900 staff in 47 offices spread across 23 countries in the UK, the Americas, Asia Pacific, Europe and the Middle East.
· The Group offers services across the whole insurance market, principally on a fee-based model and operates through three Professional Services businesses - Management, Adjusting and Insurance Support Services. Charles Taylor also has a Run-off business that owns insurance companies which are closed to new business.
· Charles Taylor's vision is to become the professional services provider of choice to the insurance market.
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