23 Jan 2012 07:00
TRADING UPDATEFOR IMMEDIATE RELEASE23 JANUARY 2012 Charles Taylor Consulting plc ("CTC" or "the Company") Trading Update
Charles Taylor Consulting plc, the international provider of insurance services, announces the following trading update prior to entering the close period for its results for the year to 31 December 2011.
Trading performance was towards the lower end of management's expectations, principally as a result of slightly higher fourth quarter costs in the Management Services business and a quieter end to the year in Adjusting Services. The concentration on cash collections in our Adjusting Services business is having a positive impact on debt.
Our focus is on delivering insurance services globally through three professional services businesses - Management, Adjusting, and Insurance Support Services - and on the ownership and run-off of insurance companies which are closed to new business.
The Management Services business provides mutual and captive insurance company management, investment management, underwriting, cover holder and risk consulting services. The performance of the mutual management businesses which make up the bulk of revenues is slightly below expectations, principally as a result of higher costs in our shipping mutual business. The captive management, risk management and underwriting services businesses continued to find trading conditions challenging.
Our Adjusting Services business provides loss assessments and claims-related advice to insurers and insureds across the energy, marine, aviation and non marine sectors, focusing on large and complex insurance losses. In the fourth quarter, trading was marginally below expectations, although the business is significantly ahead of the previous full year's performance following a particularly strong contribution from energy adjusting.
Our Insurance Support Services business provides support services to clients in the London and international insurance markets, as well as providing third-party administration services to insurance companies in run-off. The business has performed in line with expectations. As previously indicated, the business has borne its full allocation of head office costs in 2011, leading to a broadly similar result to 2010.
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 fourth quarter results of the insurance companies in run-off which the Company owns are not yet finalised, but their results are not expected to be material to attributable earnings.
Net Debt: Net debt at 31 December 2011 was £34.2m, compared to £38.6m at 30 June 2011 and £36.3m at 31 December 2010. As previously announced, we have focused on improved invoicing and cash collections by our Adjusting Services business which has started to have a positive impact on debt. In addition, the consideration paid for Alico Isle of Man Limited in November 2011 was financed by debt. Net debt is expected to improve materially once the Alico business is transferred to the Company's Isle of Man life run-off business in H1 2012, which is expected to generate significant cash releases.
The Company's final results for 2011 will be announced on 23 March 2012.
Corporate broker: The Company is pleased to announce the appointment of Peel Hunt LLP as financial adviser and sole corporate broker with immediate effect.
For more information, please contact:
David Marock, Group chief executive officer: +44 (0)20 3320 8988
David.marock@ctcplc.com
George Fitzsimons, Group finance director: +44 (0)20 3320 2263
George.fitzsimons@ctcplc.com
Mike Lord, Group communications director: +44 (0)78 3140 1311Mike.lord@ctcplc.com Notes to editors
1. Charles Taylor Consulting plc (www.ctcplc.com) is a leading international provider of insurance services. The Company comprises three professional services businesses - Management, Adjusting and Insurance Support Services and a Run-off business. We manage mutual insurance companies, advise insurers on major and complex insurance claims and provide consultancy and outsourced administration services to insurers and insureds worldwide. We also own insurance companies which are closed to new business.
2. Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Company's current expectations concerning future events and actual results may differ materially from current expectations or historical results.
XLON