LONDON (Alliance News) - Hansard Global PLC Thursday said its half-yearly pretax profits rose by 8.1% as it took in higher fees and commissions and the costs of administration declined, while Chairman Leonard Polonsky is set to stand down and become president of the board instead.
Senior independent director Philip Gregory will become Chairman from June 30, after Hansard in the first-half conducted a review of its business strategy in order to diversify new business flows and increase the scale of the business. It will present the new strategy on March 4.
Hansard Global said it made a GBP6.7 million pretax profit for the six months ended December 31, compared with GBP6.2 million for the corresponding period the previous year, driven by a 6.5% increase in fees and commissions to GBP27.9 million. Also contributing to the company's higher profitability was a fall in administrative expenses to GBP9.6 million from GBP10.4 million.
However, Hansard Global booked a GBP1.1 million litigation cost in the first-half, as a result of settlements and costs related to Hansard Europe Ltd, which has been closed to new business since June 30, 2013.
"While we expect second-half 2014 new business metrics to be significantly below the exceptionally strong comparatives of second-half 2013, we remain confident that the group is well positioned and appropriately capitalised to take advantage of significant growth opportunities that we have identified," Gordon Marr, Chief Executive, said in a statement. "We look forward to presenting our new business strategy on March 4," Marr added.
As previously announced, new business sales fell by 24% to GBP55.2 million after a large distributor stopped new business production.
"The group's strong capital position will allow it to pay dividends in line with the guidance previously provided," Marr said.
Hansard increased its interim dividend to 3.40 pence from 3.25 pence.
Hansard shares were Thursday quoted at 84.50 pence, up 2.00 pence, or 2.4%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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