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LONDON (Alliance News) - Hansard Global PLC Tuesday said third-quarter new business premiums decreased, as anticipated by 71%, owing to the previously announced suspension of activities with a large distributor in Japan, and it said it is exposed to "weaknesses" in its procedures identified in the process of transferring Hansard Europe's administration to the Isle of Man.
In a statement, the specialist long-term savings provider said the present value of new business premiums decreased to GBP16.9 million in the three months ended March 31, compared with GBP57.9 million for in the corresponding quarter a year earlier.
Overall, present value of new business premiums fell to GBP72.1 million from GBP130.6 million, some 45%, over the first nine months of Hansard Global's current financial year. Hansard said it traded profitably during the period and generated strong positive cash flows, with net profit largely in line with results of the first-half.
In addition, long-term savings provider said it has identified weaknesses in the group's procedures in relation to chargeable events certificates required by HM Revenue & Customs as a result of transferring Hansard Europe's administration to the Isle of Man. Hansard Europe was closed to new business on June 30, 2013.
Hansard estimated its exposure, including professional costs, at approximately GBP5.0 million, but said it's still at the early stages of quantifying the damage.
"We believe there are a number of significant growth opportunities available to the group and we remain confident that the group is well positioned in growth markets and appropriately capitalised to take advantage of those distribution opportunities. Notwithstanding potential exposures arising from the issues in relation to chargeable events certificates, the group's strong capital position will allow it to pay dividends in line with the guidance previously provided," Gordon Marr, chief executive, said in a statement.
"While we expect fourth-quarter new business to be significantly below the strong comparative of GBP40.0 million [present value of new business premiums in the fourth-quarter of] 2013, we anticipate that sales will start to improve from June 2014 onwards following the launch of a range of new product features and a refreshed branding in the last week of March 2014," Marr added.
In March, Hansard Global unveiled a refreshed business strategy geared at targeting scale, diversification and internal growth.
Hansard Tuesday said its strategy is now beginning to be implemented.
"[We] anticipate that sales will start to improve from June 2014 onwards following the launch of a range of new product features and a refreshed branding in the last week of March 2014.," Hansard said in a statement.
Hansard Global shares were Tuesday quoted at 86.64 pence, down 14%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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