LONDON (Alliance News) - Pensions consolidator Chesnara PLC boosted its 2018 dividend on Friday despite profit falling sharply as challenging conditions hurt economic value performance.
In 2018, pretax profit narrowing two-thirds to GBP27.0 million from GBP89.6 million the year prior.
This was after economic value fell 13% to GBP626.1 million from GBP723.1 million the year before. Economic value earnings also sank to a GBP60.9 million loss from a GBP139.5 million profit the year prior.
"It is pleasing to report that in 2018 we continued to generate cash in excess of our dividend costs and we ended the year with a strong solvency ratio of 158%," Chesnara Chief Executive Officer John Deane said, noting the ratio in 2017 was 146%.
"This was achieved against a backdrop of adverse economic conditions, especially during the last quarter of the year. Economic value has been impacted by the market conditions in line with our sensitivities."
Chesnara proposed a 13.46 pence final dividend, up 3.0% from 13.07p the year prior. For the full year, the dividend was boosted 3.0% to 20.67p from 20.07p the year before.
"Good progress on operational performance developments during the year has resulted in improvements in business resilience and higher new business volumes compared to 2017," Deane added.
"In the early part of 2019, markets have recovered somewhat but uncertainty remains as a result of political, economic and business conditions," Deane continued. "For Chesnara, with our structure of separate subsidiary companies in each European territory, debt capacity and management capability, we remain open to the opportunities this uncertainty could bring to us as a disciplined buyer with a focus on cash generation and long term value."
Shares in Chesnara were 1.1% lower at 377.98 pence on Friday.
Chesnara (CSN)