(Alliance News) - Hansard Global PLC on Thursday posted a falling net asset value and profit as
it cited inflationary pressures borne out of Russia's ongoing war against Ukraine.
Pretax profit in the year that ended June 30 fell to GBP3.8 million from GBP5.1 million a year prior, the Isle of Man-based long-term savings provider reported.
Hansard shares were 15% higher at 39.80 pence each in London on Thursday morning.
Net asset value per share at June 30 decreased by 10% to 16.1 pence from 17.9p.
New business sales fell 30% to GBP120.5 million from GBP173.0 million.
In the just ended half-year, it reported a negative investment income of GBP103.5 million and a positive change in provisions of the same amount. A year ago, investment income was positive GBP163.3 million amid a negative change in provisions of GBP163.7 million.
Fees & commissions totalled GBP48.8 million in the first half of 2022, down from GBP50.5 million.
"The financial year began with a slow return to pre-pandemic business practice and we were able to start reconnecting face-to-face with our broker community. Since the escalation of the Russia-Ukraine conflict in February 2022, the knock-on challenges to the rest of the world are becoming clearer as energy and food prices spike and can be expected to increase further over the winter period," stated Chief Executive Officer Graham Sheward.
He continued: "The direct impacts to our business are expected to be two-fold. Firstly, it has exacerbated hesitancy amongst our target clients in investing in long term savings plans and this has impacted our 2022 new business results. Secondly, we can expect cost pressures within our business in our 2023 financial year as energy costs increase, suppliers and professional advisors increase their charges and inflationary pressure is felt across our workforce."
Hansard declared a final dividend of 2.65p per share, unchanged from a year ago.
"In making this decision, the board has carefully considered its current and future cash flows, the risks and potential impact introduced by Covid and the on-going Russia-Ukraine conflict, the outlook for future growth and profitability and the views of key stakeholders, including shareholders and regulators," Chair Philip Kay explained.
It puts the total dividend to 4.45p, also unchanged.
By Tom Budszus; tombudszus@alliancenews.com
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Hansard (HSD)