TIDMHUW
RNS Number : 8722N
Helios Underwriting Plc
27 September 2019
Helios Underwriting plc
("Helios" or the "Company")
Interim results for the six months ended 30 June 2019
Helios Underwriting plc, which provides investors with a limited
liability direct investment into the Lloyd's insurance market,
announces its unaudited results for the six months ended 30 June
2019.
The highlights are as follows:
-- The operating profits before goodwill and impairment are
GBP753,000 (30 June 2018 - GBP153,000)
-- The increase in underwriting profits from the syndicate
participations reflects the improved underwriting conditions and
the investment returns at syndicate level generated from the
reduction in bond yields.
-- 61% increase in the retained capacity on 2017 and 2018
underwriting years have contributed to the increase in
profitability.
-- Two acquisitions have been completed in 2019 with capacity of
GBP3.0m. There are now 25 Limited Liability Vehicles (LLV's) for
sale (Sept 2018 - 15 for sale). There have been 45 (2018 - 35)
LLV's offered for sale so far in 2019 of which 25 (2018 - 15)
remain unsold.
-- 2019 to date has experienced lower than average loss activity
which has benefited the result for the half year.
-- The premium rate increases achieved by underwriters over the
last 18 months together with greater discipline encouraged by the
Franchise Board at Lloyds in underwriting profitable portfolios
should improve profitability in the future.
-- Basic Earnings per share is 4.51p (30 June 2018 - 1.25p)
-- The Adjusted Net Asset Value per share is GBP1.91 (31(st)
December 2018 - GBP1.90p per share)
SUMMARY FINANCIAL INFORMATION
6 months to 30th June Year to 31(st)
December
2019 2018 2018
GBP000's GBP000's GBP000's
Underwriting profits 1,610 741 783
Other income 469 18 1,879
Costs (1,326) (606) (2,054)
----------- ----------- ------------------------
Operating profit for the period before
impairment of goodwill and capacity 753 153 608
----------- ----------- ------------------------
Profit after tax 648 182 456
Earnings per share 4.51p 1.20p 3.14p
Adjusted Net Asset Value per Share GBP1.90 GBP1.61 GBP1.90
A window of opportunity has been opened which is exciting for
Helios. Smaller investors are finding their costs increasing which,
when combined with an expectation of lower returns which can
partially explain the increased flow. There are no accurate
statistics as to the age of the 'decision makers' within the
community of LLV owners but the directors feel that many are aged
and executor sales are a common feature. The complexity inherent in
the business of running an LLV, more onerous regulatory
requirements, rising costs and falling profits is a powerful
incentive to put a vehicle up for sale.
Helios remains one of very few 'consolidators' of LLV's in the
Lloyds market and the only one quoted on The London Stock Exchange.
To date we have bought 36 such vehicles over a number of years.
However, we are now seeing a significantly increased flow of
attractive targets. The lack of buyers and increased supply is
leading to prices that are more competitive.
Underwriting Profits
The underwriting profits generated from the proportion of the
capacity portfolio retained by Helios reflects the results of the
underlying syndicates. The profitability of the syndicates have
recovered as:
-- The loss activity has been muted in the first half of the year
-- The premium rate increases that have been achieved are being
reflected in the underlying results
-- The investment returns at syndicate level have benefitted
from the fall in bond yields and a benign equity market in the
first six months of the year.
Increase in Retained Capacity
Over the last 12 months we have taken advantage of this
opportunity by acquiring a further 8 LLV's increasing the Capacity
Fund to GBP55m. The additional capacity acquired on the "older"
underwriting years has increased the capacity retained by Helios by
over 60%. This increase in the retained capacity has made a
significant contribution to the underwriting profits recognised on
these older years. Although both 2017 and 2018 underwriting years
are forecast to be loss making, both these years will contribute to
profits in this calendar year.
Year of account - GBPm
--------------------------
Year 3 Year 2 Year 1
GBPm GBPm GBPm
-------------------------- -------- -------- -------
Helios Retained Capacity
at 30th June 2019 28.9 18.7 16.1
Helios Retained Capacity
at 30th June 2018 17.9 11.6 12.3
-------------------------- -------- -------- -------
Year on Year Increase 11.0 7.1 3.8
% Increase 61% 61% 31%
Capacity acquired
Since the beginning of 2019, two corporate members have been
acquired to date, and this has increased the capacity for the 2017
to 2019 years of account as follows:
Year of account - GBPm
---------------------------------
2017 2018 2019
--------------------------------- -------- -------- -------
Capacity at 1 January 2019 53.1 55.7 52.6
Acquired during 2019 3.0 3.3 3.1
--------------------------------- -------- -------- -------
Capacity at 26(th) September
2019 56.1 59.0 55.7
Helios Retained Capacity 30.7 20.7 16.7
--------------------------------- -------- -------- -------
Proportion of Capacity retained 55% 35% 30%
--------------------------------- -------- -------- -------
Our strategy of building a portfolio of syndicate capacity
continues to rely on the flow of LLV's for sale at reasonable
prices. We continue to remain selective on the vehicles acquired
and several have been sold recently at prices that were
unattractive to us.
We continue to reduce our exposure by 70% on the open
underwriting year 2018 through quota share reinsurance. The quota
share reinsurers fund their share of the capital requirements and
pay Helios a fee and a profit commission. Stop loss reinsurance is
bought for the remaining 30% to limit the Group's exposure in the
event of large underwriting losses. As the size of our capacity
fund increases more reinsurance can be ceded which in turn should
increase our flow of fees and profit commission. Our costs should
not increase at the same pace.
The Pro-forma Adjusted Net Asset Value per share is GBP1.80 per
share (Dec 2018 - GBP1.90 per share) reflecting the Placing and
Open Offer that was completed in July 2019 and the acquisition of
Nameco (No. 1113) Limited. The funds received from the fundraising
will allow Helios to continue to acquire LLV's selectively as well
as fund the additional capacity that will be available from
syndicate pre-emptions for 2020 underwriting year. It is expected
that there will continue to be demand for the top syndicates that
make up a significant proportion of the Helios Capacity Fund at the
Lloyds Capacity Auctions that take place later this year.
In August 2019, the Company commenced a program of buying back
its own shares and to date has acquired 124,500 shares at an
average price of 112.7p, a significant discount to Adjusted Net
Asset Value. We expect to continue this share buyback program.
The Board currently expects that the syndicate results for the
2017 and 2018 underwriting years will exceed current mid-point
forecasts published by the managing agents, which should make a
meaningful contribution to the Helios full year result.
For further information please contact:
Helios Underwriting plc
Nigel Hanbury - Chief Executive 020 7863 6655 /
nigel.hanbury@huwplc.com
Arthur Manners - Chief Financial Officer 07754 965 917
Shore Capital
Robert Finlay/David Coaten 020 7408 4090
About Helios
Helios provides a limited liability direct investment into the
Lloyd's insurance market and is quoted on the London Stock
Exchange's AIM market (ticker: HUW). Helios trades within the
Lloyd's insurance market writing approximately GBP56m of capacity
for the 2019 account. The portfolio provides a good spread of
business being concentrated in property insurance and reinsurance.
For further information please visit www.huwplc.com.
Financial results summary
Six months ended 30 June 2019
6 months to 6 months to 30 Year to 31 December
30 June 2019 June 2018 2018
Underwriting profits 1,610 741 783
Other Income
Fees from reinsurers 249 400 575
Corporate reinsurance recoveries (205) (179) 366
Goodwill on bargain purchase 285 - 1,184
Investment income 140 (203) (246)
Total Other Income 469 18 1,879
Costs
Pre - acquisition (2) - (56)
Stop loss costs (182) (30) (296)
Operating costs (1,142) (576) (1,702)
Total Costs (1,326) (606) (2,054)
Operating profit before
impairments of goodwill
and capacity 753 153 608
Impairment charge for
capacity - 82 (281)
Tax (105) (53) 129
Profit for the period/year 648 182 456
============== =============== ====================
Period to 30(th) June 2019
Helios retained Total profi/(loss)t
capacity at currently Helios
30 June 2019 Portfolio mid estimated Earned profit/(loss) at 31 Profits
Underwriting Year GBPm point forecasts GBP'000 December 2018 GBP'000
2017 28.9 (7.4%) (2,139) (3,753) 1,048
2018 18.7 (3.6%) (673) (2,624) 681
2019 16.1 - - - (119)
------------------ --------------- ---------------- ------------------- -------------------------------- --------
1,610
------------------ --------------- ---------------- ------------------- -------------------------------- --------
Period to 30(th) June 2018
Helios retained Total profit
capacity at currently Helios
30 June 2017 Portfolio mid estimated Earned profit/(loss) at 31 December Profits
Underwriting Year GBPm point forecasts GBP'000 2017 GBP'000
------------------ --------------- ---------------- ------------ --------------------------------------- --------
2016 17.8 5.40% 952 142 366
2017 12 (7.4)% (888) (1,797) 510
2018 12.3 N/A - (135)
------------------ --------------- ---------------- ------------ --------------------------------------- --------
741
------------------ --------------- ---------------- ------------ --------------------------------------- --------
Year to 31 December 2018
Helios retained
capacity at Total profit
31 December currently Helios
2017 Portfolio mid estimated Earned profit/(loss) at 31 December Profits
Underwriting Year GBPm point forecasts GBP'000 2017 GBP'000
------------------ --------------- ---------------- ------------ --------------------------------------- --------
2016 33.9 8.6% 2,915 (429) 1,580
2017 28.2 (8.2%) (2,312) (4,539) 912
2018 18.3 - - - (1,709)
------------------ --------------- ---------------- ------------ --------------------------------------- --------
783
------------------ --------------- ---------------- ------------ --------------------------------------- --------
Summary Balance Sheet
The summary Group balance sheet excludes items relating to
syndicate participations. See Note 15 for further information.
6 Months to June 2019 6 Months to June 2018 Year to 31 December 2018
GBP'000 GBP'000 GBP'000
------------------ --------------------- ----------------------- ------------------------
Intangible assets 16,490 12,257 16,051
Funds at Lloyd's 10,850 7,785 8,388
Other cash 2,018 4,480 9,717
Other assets 8,391 4,479 10,156
------------------ --------------------- ----------------------- ------------------------
Total assets 37,749 29,001 44,312
------------------ --------------------- ----------------------- ------------------------
Deferred tax 2,134 2,094 2,569
Borrowings 1,034 - 9,196
------------------ --------------------- ----------------------- ------------------------
Other liabilities 4,865 2,504 3,891
------------------ --------------------- ----------------------- ------------------------
Total liabilities 8,033 4,598 15,656
------------------ --------------------- ----------------------- ------------------------
Syndicate equity (8,648) (3,430) (7,611)
------------------ --------------------- ----------------------- ------------------------
Total equity 21,068 20,973 21,045
------------------ --------------------- ----------------------- ------------------------
Summary Group Cash Flow
The summary group cash flow sheet excludes items relating to
syndicate participations. See Note 15 for further information.
6 months to 6 months to 30 Year to 31 December
30 June 2019 June 2018 2018
GBP'000 GBP'000 GBP'000
Opening Balance (free cash) 9,717 1,078 1,078
Income
Acquired on acquisition 119 - 1,057
Distribution of profits (net
of tax retentions) 1,165 3,177 3,887
Transfers from Funds at Lloyds' 1,512 3,887 14,880
Investment income 43 8 -
Other income - - 323
Sale of investments - - 65
Borrowings (8,162) (1,094) 9,196
Expenditure
Operating costs (inc Hampden
/ Nomina fees) (469) (447) (1,778)
Reinsurance Cost (531) (122) -
Payable funds for acquisitions - - (721)
Payments to QS reinsurers - (1,279) (1,918)
Acquisition of LLV's (428) - (10,859)
Transfers to Funds at Lloyds' (778) (728) (3,212)
Tax (37) - (766)
Dividends paid - - (219)
Revolving credit facility
repayment - - (1,094)
Share buy backs (133) - (202)
Closing balance 2,019 4,480 9,717
-------------- --------------- --------------------
Adjusted NAV
Proforma Equity Raise 6 months 6 months Year to 31
June 2019 and Acquisition to 30 June to 30 June December
- after Equity Adjustments 2019 2018 2018
Raise GBP'000 GBP'000 GBP'000
Net tangible assets 6,800 2,222 4,578 8,716 4,994
Group letters of
credit 2,845 1,083 1,762 1,711 1,744
Value of capacity
(WAV) 22,182 1,105 21,077 13,046 20,638
---------------- ----------------- ------------ ------------ -----------
31,827 4,410 27,417 23,473 27,376
---------------- ----------------- ------------ ------------ -----------
Share in issue
- on the market 17,635 - 14,348 14,604 14,441
Shares in issue
- total of on the
market and JSOP
shares - - 14,848 - 14,941
Adjusted net asset
value per share
GBP - on the market 1.80 - 1.91 1.61 1.90
Adjusted net asset
value per share
GBP - on the market
and JSOP shares - - 1.85 - 1.83
Interim condensed consolidated statement of comprehensive
income
Six months ended 30 June 2019
6 months
ended 6 months 12 months
30 June ended 30 ended
2019 June 2018 31 December
Unaudited Unaudited 2018 Audited
Note GBP'000 GBP'000 GBP'000
------------------------------------------------------- ----- ---------- ---------- -------------
Gross premium written 4 29,552 20,647 38,703
Reinsurance premium ceded (9,380) (6,043) (7,675)
------------------------------------------------------- ----- ---------- ---------- -------------
Net premium written 4 20,172 14,604 31,028
------------------------------------------------------- ----- ---------- ---------- -------------
Change in unearned gross premium provision 5 (4,625) (3,793) (360)
Change in unearned reinsurance premium provision 5 2,767 1,946 284
------------------------------------------------------- ----- ---------- ---------- -------------
5 (1,858) (1,847) (76)
------------------------------------------------------- ----- ---------- ---------- -------------
Net earned premium 3,4 18,314 12,757 30,952
Net investment income 6 1,491 (87) 295
Other underwriting income 252 - 266
Gain on bargain purchase 12 285 - 1,184
------------------------------------------------------- ----- ---------- ---------- -------------
Other income 13 344 (184)
------------------------------------------------------- ----- ---------- ---------- -------------
Revenue 20,355 13,014 32,513
------------------------------------------------------- ----- ---------- ---------- -------------
Gross claims paid (17,242) (10,543) (23,631)
Reinsurers' share of gross claims paid 3,890 2,083 4,859
------------------------------------------------------- ----- ---------- ---------- -------------
Claims paid, net of reinsurance (13,352) (8,460) (18,772)
------------------------------------------------------- ----- ---------- ---------- -------------
Change in provision for gross claims 5 1,337 4,255 (1,109)
Reinsurers' share of change in provision for gross
claims 5 (1,036) (4,320) 909
------------------------------------------------------- ----- ---------- ---------- -------------
Net change in provision for claims 5 301 (65) (200)
------------------------------------------------------- ----- ---------- ---------- -------------
Net insurance claims and loss adjustment expenses 4 (13,051) (8,525) (18,972)
------------------------------------------------------- ----- ---------- ---------- -------------
Expenses incurred in insurance activities (5,786) (3,992) (11,696)
Other operating expenses (765) (344) (1,237)
------------------------------------------------------- ----- ---------- ---------- -------------
Operating expenses (6,551) (4,336) (12,933)
------------------------------------------------------- ----- ---------- ---------- -------------
Operating profit before impairments of goodwill
and capacity 4 753 153 608
Impairment of goodwill - - -
Impairment of syndicate capacity - 82 (281)
------------------------------------------------------- ----- ---------- ---------- -------------
Profit before tax 753 235 327
Income tax charge 7 (105) (53) 129
------------------------------------------------------- ----- ---------- ---------- -------------
Profit for the period 648 182 456
------------------------------------------------------- ----- ---------- ---------- -------------
Other comprehensive income
Foreign currency translation differences - - -
Income tax relating to the components of other
comprehensive income - - -
------------------------------------------------------- ----- ---------- ---------- -------------
Other comprehensive income for the period, net
of tax - - -
------------------------------------------------------- ----- ---------- ---------- -------------
Total other comprehensive income for the period 648 182 456
------------------------------------------------------- ----- ---------- ---------- -------------
Profit for the period attributable to owners of
the Parent 648 182 456
------------------------------------------------------- ----- ---------- ---------- -------------
Total comprehensive income for the period attributable
to owners of the Parent 648 182 456
------------------------------------------------------- ----- ---------- ---------- -------------
Earnings per share attributable to owners of the
Parent
Basic 8 4.51p 1.25p 3.14p
Diluted 8 4.36p 1.20p 3.03p
------------------------------------------------------- ----- ---------- ---------- -------------
The profit attributable to owners of the Parent and earnings per
share set out above are in respect of continuing operations.
Interim condensed consolidated statement of financial
position
Six months ended 30 June 2019
6 months
ended 6 months 12 months
30 June ended 30 ended
2019 June 2018 31 December
Unaudited Unaudited 2018 Audited
Note GBP'000 GBP'000 GBP'000
------------------------------------------------------- ----- ---------- ---------- -------------
Assets
Intangible assets 16,490 12,257 16,051
Financial assets at fair value through profit or
loss 56,507 41,711 58,075
Reinsurance assets:
- reinsurers' share of claims outstanding 5 21,233 14,164 22,698
- reinsurers' share of unearned premium 5 7,163 4,791 4,057
Other receivables, including insurance and reinsurance
receivables 50,717 36,179 52,938
Deferred acquisition costs 6,228 4,382 6,782
Prepayments and accrued income 701 642 439
Cash and cash equivalents 6,997 8,039 12,202
------------------------------------------------------- ----- ---------- ---------- -------------
Total assets 166,036 122,165 173,242
------------------------------------------------------- ----- ---------- ---------- -------------
Liabilities
Insurance liabilities:
- claims outstanding 5 80,204 55,685 88,032
- unearned premium 5 30,631 20,773 24,772
Deferred income tax liabilities 2,134 2,094 2,635
Borrowings 1,034 - 9,196
Other payables, including insurance and reinsurance
payables 27,468 21,509 25,321
Accruals and deferred income 3,497 1,131 2,241
------------------------------------------------------- ----- ---------- ---------- -------------
Total liabilities 144,968 101,192 152,197
------------------------------------------------------- ----- ---------- ---------- -------------
Equity
Equity attributable to owners of the Parent:
Share capital 11 1,510 1,510 1,510
Share premium 11 15,387 15,387 15,387
Other reserves - treasury shares 11 (50) (50) (50)
Retained earnings 4,221 4,126 4,198
------------------------------------------------------- ----- ---------- ---------- -------------
Total equity 21,068 20,973 21,045
------------------------------------------------------- ----- ---------- ---------- -------------
Total liabilities and equity 166,036 122,165 173,242
------------------------------------------------------- ----- ---------- ---------- -------------
The Financial Statements were approved and authorised for issue
by the Board of Directors on 26 September 2019, and were signed on
its behalf by:
Nigel Hanbury
Chief Executive
Interim condensed consolidated statement of changes in
equity
Six months ended 30 June 2019
Attributable to owners
of the Parent
----------------------------------------------------
Note Share Share Other Retained
capital premium reserves earnings Total
Consolidated GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------- ----- -------- --------- ---------- --------- --------
At 1 January 2019 1,510 15,387 (50) 4,198 21,045
Total comprehensive income for the year:
Profit for the year - - - 648 648
Other comprehensive income, net of tax - - - 39 39
----------------------------------------- ----- -------- --------- ---------- --------- --------
Total comprehensive income for the year - - - 687 687
----------------------------------------- ----- -------- --------- ---------- --------- --------
Transactions with owners:
Dividends paid 9 - - - (530) (530)
Company buy back of shares 11 - - - (134) (134)
----------------------------------------- ----- -------- --------- ---------- --------- --------
Total transactions with owners - - - (664) (664)
At 30 June 2019 1,510 15,387 (50) 4,221 21,068
----------------------------------------- ----- -------- --------- ---------- --------- --------
At 1 January 2018 1,510 15,387 (50) 4,163 21,010
Total comprehensive income for the year:
Profit for the year - - - 182 182
Other comprehensive income, net of tax - - - - -
----------------------------------------- ----- -------- --------- ---------- --------- --------
Total comprehensive income for the year - - - 182 182
----------------------------------------- ----- -------- --------- ---------- --------- --------
Transactions with owners:
Dividends paid - - - (219) (219)
Share issue - - - - -
----------------------------------------- ----- -------- --------- ---------- --------- --------
Total transactions with owners - - - (219) (219)
----------------------------------------- ----- -------- --------- ---------- --------- --------
At 30 June 2018 1,510 15,387 (50) 4,126 20,973
----------------------------------------- ----- -------- --------- ---------- --------- --------
At 1 January 2018 1,510 15,387 (50) 4,163 21,010
Total comprehensive income for the year:
Profit for the year - - - 456 456
Other comprehensive income, net of tax - - - - -
----------------------------------------- ----- -------- --------- ---------- --------- --------
Total comprehensive income for the year - - - 456 456
----------------------------------------- ----- -------- --------- ---------- --------- --------
Transactions with owners:
Dividends paid - - - (219) (219)
Company buy back of shares 11 - - - (202) (202)
Share issue 11 - - - - -
----------------------------------------- ----- -------- --------- ---------- --------- --------
Total transactions with owners - - - (421) (421)
----------------------------------------- ----- -------- --------- ---------- --------- --------
At 31 December 2018 1,510 15,387 (50) 4,198 21,045
----------------------------------------- ----- -------- --------- ---------- --------- --------
Interim condensed consolidated statement of cash flows
Six months ended 30 June 2019
Note 6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2019 2018 Unaudited 2018
Unaudited GBP'000 Audited
GBP'000 GBP'000
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash flows from operating activities
Profit before tax 753 235 327
Adjustments for:
- Other comprehensive income, gross of tax - - -
- Interest received (39) (6) (144)
- Investment income 6 (1,416) (100) (841)
- Recognition of negative goodwill (285)
- Goodwill on bargain purchase - - (1,184)
- Impairment of goodwill - - -
- (Profit)/loss on sale of intangible assets - - (125)
- Impairment of intangible assets - (82) 281
- Goodwill on acquisition - - -
Changes in working capital:
* change in fair value of financial assets held at fair
value through profit or loss 17 (46) 490
* (increase)/decrease in financial assets at fair value
through profit or loss 2,928 7,248 10,585
- (increase)/decrease in other receivables 5,278 (3,566) (7,113)
- (increase)/decrease in other payables 1,240 3,775 3,955
- net (increase)/decrease in technical provisions (5,504) (1,056) 2,162
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash generated/(utilised) from operations 2,972 6,402 8,393
-------------------------------------------------------------- ----- ---------- --------------- ------------
Income tax paid - - (962)
-------------------------------------------------------------- ----- ---------- --------------- ------------
Net cash inflow from operating activities 2,972 6,402 7,431
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash flows from investing activities
Interest received 39 6 144
Investment income 1,416 100 841
Purchase of intangible assets - - -
Proceeds from disposal of intangible assets - - 86
Acquisition of subsidiaries, net of cash acquired (806) - (6,825)
-------------------------------------------------------------- ----- ---------- --------------- ------------
Net cash inflow from investing activities 649 106 (5,754)
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash flows from financing activities
-------------------------------------------------------------- ----- ---------- --------------- ------------
Net proceeds from issue of ordinary share capital - - -
Buy back of ordinary share capital (134) - -
Payment for company buy back of shares - - (202)
Proceeds from borrowings (8,162) (1,094) 9,196
Repayment of borrowings - - (1,094)
Dividends paid to owners of the Parent (530) (219) (219)
-------------------------------------------------------------- ----- ---------- --------------- ------------
Net cash outflow from financing activities (8,826) (1,313) 7,681
-------------------------------------------------------------- ----- ---------- --------------- ------------
Net increase in cash and cash equivalents (5,205) 5,195 9,358
Cash and cash equivalents at beginning of period 12,202 2,844 2,844
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash and cash equivalents at end of period 6,997 8,039 12,202
-------------------------------------------------------------- ----- ---------- --------------- ------------
Cash held within the syndicates' accounts is GBP4,979,000 (2018:
GBP3,900,000) of the total cash and cash equivalents held at the
end of the period GBP6,997,000 (2018: GBP8,039,000). The cash held
within the syndicates' accounts is not available to the Group to
meet its day-to-day working capital requirements.
Cash and cash equivalents comprise cash at bank and in hand.
Notes to the financial statements
Six months ended 30 June 2019
1. General information
The Company is a public limited company quoted on AIM. The
Company was incorporated in England, is domiciled in the UK and its
registered office is 40 Gracechurch Street, London EC3V 0BT. The
Company participates in insurance business as an underwriting
member at Lloyd's through its subsidiary undertakings.
2. Accounting policies
Basis of preparation
The Condensed Consolidated Interim Financial Statements have
been prepared using accounting policies consistent with
International Financial Reporting Standards (IFRSs) and in
accordance with International Accounting Standard (IAS) 34 Interim
Financial Reporting, as adopted by the European Union.
The Condensed Consolidated Interim Financial Statements are
prepared for the six months ended 30 June 2019.
The Condensed Consolidated Interim Financial Statements for the
six months ended 30 June 2019 and 2018 are unaudited, but have been
subject to review by the Group's auditors. The Condensed
Consolidated Interim Financial Statements have been prepared in
accordance with the accounting policies adopted for the year ended
31 December 2018, and the adoption of new and amended standards as
set out further below.
The Condensed Consolidated Interim incorporate the Financial
Statements of Helios Underwriting plc, the Parent Company, and its
directly and indirectly held subsidiaries being Hampden Corporate
Member Limited, Nameco (No. 365) Limited, Nameco (No. 605) Limited,
Nameco (No. 321) Limited, Nameco (No. 917) Limited, Nameco (No.
229) Limited, Nameco (No. 518) Limited, Nameco (No. 804) Limited,
Halperin Underwriting Limited, Bernul Limited, Dumasco Limited,
Nameco (No. 311) Limited, Nameco (No. 402) Limited, Updown
Underwriting Limited, Nameco (No. 507) Limited, Nameco (No. 76)
Limited, Kempton Underwriting Limited, Devon Underwriting Limited,
Nameco (No. 346) Limited, Pooks Limited, Charmac Underwriting
Limited, Nottus (No 51) Limited, Chapman Underwriting Limited,
Llewellyn House Underwriting Limited, Advantage DCP Limited, Romsey
Underwriting Limited, Nameco (No. 409) Limited, RBC CEES Trustee
Limited, Helios UTG Partner Limited, Nomina No 035 LLP, Nomina No
342 LLP, Nomina No 380 LLP, Nomina No 372 LLP, Salviscount LLP,
Inversanda LLP, Fyshe Underwriting LLP, Nomina No 505 LLP and
Nomina No 321 LLP. (Note 10).
The underwriting data on which these Condensed Consolidated
Interim Financial Statements are based upon has been supplied by
the managing agents of those syndicates which the Group supports.
The data supplied is the 100% figures for each syndicate. The Group
has applied its share of the syndicate participations to the gross
figures to derive its share of the syndicates transactions, assets
and liabilities.
Significant accounting policies
The Condensed Consolidated Interim Financial Statements have
been prepared under the historical cost convention as modified by
the revaluation of the financial assets at fair value through the
profit and loss. The same accounting policies, presentation and
methods of computation are followed in these Condensed Consolidated
Interim Financial Statements as were applied in the preparation of
the Group Financial Statements for the year ended 31 December
2018.
During the year ended 31 December 2018 and the current period,
the Group and the Company adopted all the new and revised IFRS,
amendments and interpretations that are relevant to its operations
and are effective for accounting periods beginning on 1 January
2018 and 1 January 2019 respectively, apart from IFRS 9 "Financial
Instruments", for which a temporary exemption has been applied by
the Group, as explained further below.
Temporary exemptions from IFRS 9 "Financial Instruments",
(effective 1 January 2018)
The effective date of IFRS 9 Financial Instruments is 1 January
2018. An insurer that has not previously adopted any version of
IFRS 9, including the requirements for the presentation of gains
and losses on financial liabilities designated as at fair value
through profit or loss and whose activities are predominantly
connected with insurance as at its annual reporting date that
immediately precedes 1 April 2016 (or a later date as specified in
paragraph 20G of IFRS 4), may apply IAS 39 - Financial Instruments:
Recognition and Measurement rather than IFRS 17 - Insurance
Contracts.
The Group has applied for the temporary exemption from IFRS 9 as
its activities are predominately connected with insurance and it
has not previously adopted any version of IFRS 9, including the
requirements for the presentation of gains and losses on financial
liabilities designated at fair value through profit or loss, for
annual period beginning before 1 January 2022. Consequently, the
Group has a single date of initial application for IFRS 9 in it's
entirely, being 1 January 2022.
The new standards and amendments to standards and
interpretations effective from 1 January 2019, as disclosed in the
Annual Report for the year ended 31 December 2018, have not had an
impact on the Groups accounting policies and hence no significant
impact on the Condensed Consolidated Interim Financial Statements
at 30 June 2019.
New Standards effective from 1 January 2019:
Adopted by the EU
-- IFRS 16 "Leases", issued on 13 January 2016 (effective 1 January 2019).
-- IFRS 23 "Uncertainty over Income Tax Treatments", issued on 7
June 2017, (effective date 1 January 2019).
-- Amendments to IFRS 9: Prepayment Features with Negative
Compensation, issued on 12 October 2017, (effective date 1 January
2019).
-- Amendments to IAS 28: Long-term Interests in Associates and
Joint Ventures, issued on 12 December 2017,
(effective date 1 January 2019).
-- Annual improvements to IFRS 2015-2017 Cycle, issued on 12
December 2017, (effective date 1 January 2019).
-- Amendments to IAS 19: Plan Amendment, Curtailment or
Settlement, issued on 7 February 2017, (effective date 1 January
2019).
3. Segmental information
Nigel Hanbury is the Group's chief operating decision-maker. He
has determined its operating segments based on the way the Group is
managed, for the purpose of allocating resources and assessing
performance.
The Group has three segments that represent the primary way in
which the Group is managed, as follows:
-- syndicate participation;
-- investment management; and
-- other corporate activities.
Other
Syndicate Investment corporate
participation management activities Total
6 months ended 30 June 2019 Unaudited GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------------- ----------- ----------- --------
Net earned premium 19,754 - (1,440) 18,314
Net investment income 1,491 - - 1,491
Other income - - 265 265
Net insurance claims and loss adjustment
expenses (13,051) - - (13,051)
Expenses incurred in insurance activities (5,472) - (314) (5,786)
Other operating expenses - - (765) (765)
Goodwill on bargain purchase - - 285 285
Impairment of goodwill - - - -
Impairment of syndicate capacity - - - -
------------------------------------------ -------------- ----------- ----------- --------
Profit before tax 2,722 - (1,969) 753
------------------------------------------ -------------- ----------- ----------- --------
Other
Syndicate Investment corporate
participation management activities Total
6 months ended 30 June 2018 Unaudited GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------------- ----------- ----------- --------
Net earned premium 14,012 - (1,255) 12,757
Net investment income (102) 15 - (87)
Other income - - 344 344
Net insurance claims and loss adjustment
expenses (8,525) - - (8,525)
Expenses incurred in insurance activities (2,851) - (1,141) (3,992)
Other operating expenses - - (344) (344)
Goodwill on bargain purchase - - - -
Impairment of goodwill - - - -
Impairment of syndicate capacity - - 82 82
------------------------------------------ -------------- ----------- ----------- --------
Profit before tax 2,534 15 (2,314) 235
------------------------------------------ -------------- ----------- ----------- --------
Other
Syndicate Investment corporate
participation management activities Total
12 months ended 31 December 2018 Audited GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------ -------------- ----------- ----------- --------
Net earned premium 30,749 - 203 30,952
Net investment income 586 (291) - 295
Other income (330) - 412 82
Net insurance claims and loss adjustment
expenses (18,972) - - (18,972)
Expenses incurred in insurance activities (11,359) - (337) (11,696)
Other operating expenses (302) - (935) (1,237)
Gain on bargain purchase - - 1,184 1,184
Impairment of goodwill - - - -
Impairment of syndicate capacity - - (281) (281)
------------------------------------------ -------------- ----------- ----------- --------
Profit before tax 372 (291) 246 327
------------------------------------------ -------------- ----------- ----------- --------
The Group does not have any geographical segments as it
considers all of its activities to arise from trading within the
UK.
No major customers exceed 10% of revenue.
Net earned premium within 2019 other corporate activities
totalling GBP1,440,000 (2018:1,255,000 - 2016, 2017 and 2018 years
of account) represents the 2017, 2018 and 2019 years of account net
Group quota share reinsurance premium payable to Hampden Insurance
Guernsey PCC Limited - Cell 6. This net quota share reinsurance
premium payable is included within "reinsurance premium ceded" in
the Consolidated Statement of Comprehensive Income of the
period.
4. Operating profit before impairments of goodwill and
capacity
Underwriting year of account*
-------------------------------------------
2017 and Pre- Corporate Other
6 months ended 30 prior 2018 2019 Sub-total acquisition reinsurance corporate Total
June 2019 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Gross premium written 669 4,017 24,993 29,679 (127) - 29,552
Reinsurance ceded (132) (930) (6,731) (7,793) 36 (1,440) (182) (9,380)
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Net premium written 536 3,088 18,262 21,886 (91) (1,440) (182) 20,172
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Net earned premium 2,103 12,936 4,987 20,026 (90) (1,440) (182) 18,314
Other income 934 319 130 1,383 (16) 249 425 2,042
Net insurance claims
and loss adjustment
expenses (656) (7,879) (4,369) (12,904) 58 - (205) (13,051)
Operating expenses (717) (3,605) (1,133) (5,455) 46 - (1,142) (6,551)
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity 1,664 1,771 (385) 3,050 (2) (1,191) (1,104) 753
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Quota share adjustment (616) (1,090) 266 (1,440) - 1,440 - -
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity
after quota share
adjustment 1,048 681 (119) 1,610 (2) 249 (1,104) 753
----------------------- -------- --------- --------- ----------- ------------ ------------ ---------- --------
Underwriting year of account*
---------------------------------------------
2016 and Pre- Corporate Other
6 months ended 30 prior 2017 2018 Sub-total acquisition reinsurance corporate Total
June 2018 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Gross premium written 337 2,940 17,370 20,647 - - - 20,647
Reinsurance ceded 103 (542) (4,319) (4,758) - (1,255) (30) (6,043)
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Net premium written 440 2,398 13,051 15,888 - (1,255) (30) 14,604
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Net earned premium 1,764 8,511 3,767 14,042 - (1,255) (30) 12,757
Other income 195 (139) 3 59 - 400 (202) 257
Net insurance claims
and loss adjustment
expenses (333) (4,581) (3,432) (8,346) - - (179) (8,525)
Operating expenses (608) (2,362) (790) (3,760) - - (576) (4,336)
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity 1,017 1,430 (452) 1,995 - (855) (987) 153
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Quota share
adjustment (651) (920) 317 (1,254) - 1,254 - -
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity
after quota share
adjustment 366 510 (135) 741 - 399 (987) 153
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Underwriting year of account*
---------------------------------------------
2016 Pre- Corporate Other
12 months ended 31 and prior 2017 2018 Sub-total acquisition reinsurance corporate Total
December 2018 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Gross premium written 1,333 6,253 45,283 52,869 (14,166) - - 38,703
Reinsurance ceded 81 (954) (9,840) (10,713) 3,131 203 (296) (7,675)
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Net premium written 1,414 5,299 35,443 42,156 (11,035) 203 (296) 31,028
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Net earned premium 4,912 19,457 18,903 43,272 (12,227) 203 (296) 30,952
Other income 335 (261) (120) (46) 94 575 938 1,561
Net insurance claims
and loss adjustment
expenses 1,220 (11,035) (16,204) (26,019) 6,681 - 366 (18,972)
Operating expenses (2,949) (6,076) (7,602) (16,627) 5,396 - (1,702) (12,933)
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity 3,518 2,085 (5,023) 580 (56) 778 (694) 608
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Quota share
adjustment (1,938) (1,173) 3,314 203 - (203) - -
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Operating profit
before impairments
of goodwill and
capacity
after quota share
adjustment 1,580 912 (1,709) 783 (56) 575 (694) 608
--------------------- ---------- --------- --------- ----------- ------------ ------------ ---------- --------
Pre-acquisition relates to the element of results from the new
acquisitions before they were acquired by the Group.
* The underwriting year of account results represent the Group's
share of the syndicates' results by underwriting year of account
before corporate member level reinsurance and members' agents
charges.
5. Insurance liabilities and reinsurance balances
Movement in claims outstanding
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2019 88,032 22,698 65,334
Increase in reserves arising from acquisition of
subsidiary undertakings 1,974 552 1,422
Movement of reserves (1,337) (1,036) (301)
Other movements (8,465) (981) (7,484)
------------------------------------------------- -------- ----------- --------
At 30 June 2019 80,204 21,233 58,971
------------------------------------------------- -------- ----------- --------
Movement in unearned premium
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2019 24,772 4,057 20,715
Increase in reserves arising from acquisition of
subsidiary undertakings - - -
Movement of reserves 4,625 2,767 1,858
Other movements 1,234 339 895
------------------------------------------------- -------- ----------- --------
At 30 June 2019 30,631 7,163 23,468
------------------------------------------------- -------- ----------- --------
Included within other movements are the 2015 and prior years'
claims reserves reinsured into the 2016 year of account on which
the Group does not participate and currency exchange
differences.
Movement in claims outstanding
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2018 59,833 14,836 44,997
Increase in reserves arising from acquisition of
subsidiary undertakings - - -
Movement of reserves (4,255) (4,320) 65
Other movements 107 3,648 (3,541)
------------------------------------------------- -------- ----------- --------
At 30 June 2018 55,685 14,164 41,521
------------------------------------------------- -------- ----------- --------
Movement in unearned premium
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2018 15,916 2,354 13,562
Increase in reserves arising from acquisition of
subsidiary undertakings - - -
Movement of reserves 3,793 1,946 1,847
Other movements 1,064 491 573
------------------------------------------------- -------- ----------- --------
At 30 June 2018 20,773 4,791 15,982
------------------------------------------------- -------- ----------- --------
Included within other movements are the 2013 and prior years'
claims reserves reinsured into the 2014 year of account on which
the Group does not participate and currency exchange
differences.
Movement in claims outstanding
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2018 59,833 14,836 44,997
Increase in reserves arising from acquisition of
subsidiary undertakings 25,576 6,969 18,607
Movement of reserves 1,109 909 200
Other movements 1,514 (16) 1,530
------------------------------------------------- -------- ----------- --------
At 31 December 2018 88,032 22,698 65,334
------------------------------------------------- -------- ----------- --------
Movement in unearned premium
Gross Reinsurance Net
GBP'000 GBP'000 GBP'000
------------------------------------------------- -------- ----------- --------
At 1 January 2018 15,916 2,354 13,562
Increase in reserves arising from acquisition of
subsidiary undertakings 8,042 1,322 6,720
Movement of reserves 360 284 76
Other movements 454 97 357
------------------------------------------------- -------- ----------- --------
At 31 December 2018 24,772 4,057 20,715
------------------------------------------------- -------- ----------- --------
Included within other movements are the 2015 and prior years'
claims reserves reinsured into the 2016 year of account on which
the Group does not participate and currency exchange
differences.
6. Net investment income
6 months 6 months 12 months
ended ended ended 31
30 June 30 June December
2019 Unaudited 2018 Unaudited 2018 Audited
GBP'000 GBP'000 GBP'000
------------------------------------------------------ --------------- ---------------- -------------
Investment income 1,416 100 841
Realised (losses)/gains on financial assets at fair
value through profit or loss 17 (38) (145)
Unrealised (losses)/gains on financial assets at fair
value through profit or loss 18 (155) (490)
Investment management expenses 1 - (55)
Bank interest 39 6 144
------------------------------------------------------ --------------- ---------------- -------------
Net investment income 1,491 (87) 295
------------------------------------------------------ --------------- ---------------- -------------
7. Income tax charge
Analysis of tax charge/(credit) in the period
6 months 6 months 12 months
ended ended ended 31
30 June 30 June December
2019 Unaudited 2018 Unaudited 2018 Audited
GBP'000 GBP'000 GBP'000
------------------ --------------- ---------------- -------------
Income tax charge 105 53 (129)
------------------ --------------- ---------------- -------------
The income tax expense is recognised based on management's best
estimate of the weighted average annual income tax rate expected
for the full financial year. The estimated average annual tax rate
used is 19.00% (2018: 19.25%). Material disallowed terms have been
adjusted for in the income tax calculation.
8. Earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to ordinary shareholders after tax by the weighted
average number of ordinary shares outstanding during the
period.
Diluted earnings per share is calculated by dividing the net
profit attributable to ordinary equity holders of the Company by
the weighted average number of ordinary shares outstanding during
the period, plus the weighted average number of ordinary shares
that would be issued on the conversion of all the dilutive
potential ordinary shares into ordinary shares.
Earnings per share has been calculated in accordance with IAS 33
"Earnings per share".
The earnings per share and weighted average number of shares
used in the calculation are set out below:
6 months 6 months 12 months
ended 30 ended 30 ended 31
June 2019 June 2018 December
Unaudited Unaudited 2018 Audited
------------------------------------------------------- ---------- ----------- -------------
Profit for the year after tax attributable to ordinary
equity holders of the parent 648,000 GBP182,000 GBP456,000
------------------------------------------------------- ---------- ----------- -------------
Basic - weighted average number of ordinary shares* 14,356,224 14,604,240 14,544,433
------------------------------------------------------- ---------- ----------- -------------
Adjustments for calculating the diluted earnings per
share: Treasury shares (JSOP scheme) 500,000 500,000 500,000
------------------------------------------------------- ---------- ----------- -------------
Diluted - weighted average number of shares* 14,856,224 15,104,240 15,044,433
------------------------------------------------------- ---------- ----------- -------------
Basic earnings per share 4.51p 1.25p 3.14p
------------------------------------------------------- ---------- ----------- -------------
Diluted earnings per share 4.36p 1.20p 3.03p
------------------------------------------------------- ---------- ----------- -------------
* Used as the denominator in calculating the basic earnings per
share, and diluted earnings per share, respectively.
9. Dividends paid or proposed
A total dividend of 3p per fully paid ordinary share being 1.5p
final dividend and 1.5p special dividend was proposed and agreed at
the AGM on 28 June 2019 (2018: 1.5p), amounting to a total of
GBP530,000. The eligible shares for the dividend entitlement were
17,635,128 fully paid ordinary shares as at 18 July 2019 (note 16).
The dividend was provided for and recognised in the payables in the
Statement of Financial Position as at 30 June 2019. The dividend
payment was settled on 31 July 2019.
10. Investments in subsidiaries
30 June 30 June 31 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
------ -------- -------- -----------
Total 25,905 15,456 24,559
------ -------- -------- -----------
Direct/indirect 30 June 2019 30 June 2018 31 December 2018
Company or partnership interest ownership ownership ownership Principal activity
------------------------- ---------------- ------------ ------------- ----------------- -------------------------
Hampden Corporate Member Lloyd's of London
Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 365) Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 605) Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 321) Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 917) Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 229) Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 518) Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 804) Limited Direct 100% 100% 100% corporate vehicle
Halperin Underwriting Lloyd's of London
Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Bernul Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Dumasco Limited Direct - 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 311) Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 402) Limited Direct 100% 100% 100% corporate vehicle
Updown Underwriting Lloyd's of London
Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 507) Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 76) Limited Direct 100% 100% 100% corporate vehicle
Kempton Underwriting Lloyd's of London
Limited Direct 100% 100% 100% corporate vehicle
Devon Underwriting Lloyd's of London
Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Nameco (No. 346) Limited Direct 100% 100% 100% corporate vehicle
Lloyd's of London
Pooks Limited Direct 100% 100% 100% corporate vehicle
Charmac Underwriting Lloyd's of London
Limited Direct 100% 100% 100% corporate vehicle
Joint Share Ownership
RBC CEES Trustee Limited Direct 100% 100% 100% Plan
Lloyd's of London
Nottus (No 51) Limited Direct 100% 100% 100% corporate vehicle
Chapman Underwriting Lloyd's of London
Limited Direct 100% 100% 100% corporate vehicle
Helios UTG Partner
Limited Direct 100% 100% 100% Corporate partner
Lloyd's of London
Nomina No 035 LLP Indirect 100% 100% 100% corporate vehicle
Lloyd's of London
Nomina No 342 LLP Indirect 100% 100% 100% corporate vehicle
Lloyd's of London
Nomina No 372 LLP Indirect 100% 100% 100% corporate vehicle
Lloyd's of London
Salviscount LLP Indirect 100% 100% 100% corporate vehicle
Lloyd's of London
Inversanda LLP Indirect 100% 100% 100% corporate vehicle
Lloyd's of London
Fyshe Underwriting LLP Indirect 100% - 100% corporate vehicle
Lloyd's of London
Nomina No 505 LLP Indirect 100% - 100% corporate vehicle
Lloyd's of London
Nomina No 321 LLP Direct 100% - 100% corporate vehicle
Llewellyn House Lloyd's of London
Underwriting Limited Direct 100% - 100% corporate vehicle
Lloyd's of London
Advantage DCP Limited Direct 100% - 100% corporate vehicle
Romsey Underwriting Lloyd's of London
Limited Direct 100% - 100% corporate vehicle
Lloyd's of London
Nameco (No. 409) Limited Direct 100% - - corporate vehicle
------------------------- ---------------- ------------ ------------- ----------------- -------------------------
Helios UTG Partner Limited, a subsidiary of the Company, owns
100% of Nomina No 035 LLP, Nomina No 342 LLP, Nomina No 372 LLP,
Salviscount LLP, Inversanda LLP, Fyshe Underwriting LLP, Nomina No
505 LLP and Nomina No 321 LLP. The cost of acquisition of these
LLPs is accounted for in Helios UTG Partner Limited, their
immediate Parent Company.
RBC CEES Trustee Limited is a newly incorporated entity in year
2017 to satisfy the requirements of the Joint Share Ownership
Plan.
On 21 February 2019 the Company sold its 500 Ordinary GBP1
shares in Dumasco Limited at the nominal value of GBP500.
For details of all new acquisitions in the 6 months to 30 June
2019, refer to note 12.
For details of all new acquisitions made during the post balance
sheet period refer to note 16.
11. Share capital and share premium
Partly
Ordinary share paid ordinary Share
Number of capital share capital premium Total
shares (i) GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------------------------- ----------- -------------- -------------- -------- --------
Ordinary shares of 10p each and share premium at 1
January 2018 15,104,240 1,460 50 15,387 16,897
Ordinary shares of 10p each and share premium at 31
December 2018 15,104,240 1,460 50 15,387 16,897
----------------------------------------------------- ----------- -------------- -------------- -------- --------
Ordinary shares of 10p each and share premium at 1
January 2019 15,104,240 1,460 50 15,387 16,897
Ordinary shares of 10p each and share premium at 30
June 2019 15,104,240 1,460 50 15,387 16,897
----------------------------------------------------- ----------- -------------- -------------- -------- --------
(i) Number of shares
30 June 2019 31 December 2018
------------------------------------------------------------------- ------------ ----------------
Allotted, called up and fully paid ordinary shares:
On the market 14,348,462 14,440,962
Company buy back of ordinary shares held in treasury (iii) 255,778 163,278
------------------------------------------------------------------- ------------ ----------------
14,604,240 14,604,240
------------------------------------------------------------------- ------------ ----------------
Uncalled and partly paid ordinary share under the JSOP scheme (ii) 500,000 500,000
------------------------------------------------------------------- ------------ ----------------
15,104,240 15,104,210
------------------------------------------------------------------- ------------ ----------------
In July 2019 the Company issued additional ordinary shares, as
disclosed in note 16.
(ii) The partly paid ordinary shares are not entitled to
dividend distribution rights during the year.
(iii) Treasury shares: purchase of own shares:
During the period, the Company bought back some of its own
ordinary shares on the market and these are held in treasury, as
detailed below:
Number of shares Market value consideration price Nominal value 10p each
------------------------------------------ ---------------- -------------------------------- ----------------------
Year end 31 December 2018 163,278 202,598 16,328
------------------------------------------ ---------------- -------------------------------- ----------------------
Movement in the Treasury share buy backs
during the 6 months to 30 June 2019 92,500 134,000 9,250
------------------------------------------ ---------------- -------------------------------- ----------------------
Total as at 30 June 2019 255,778 336,598 25,578
------------------------------------------ ---------------- -------------------------------- ----------------------
The retained earnings for the 6 months ended 30 June 2019 have
been reduced by GBP134,000, being the consideration paid on the
market for these shares, as shown in the consolidated statement of
changes in equity.
The Company cannot exercise any rights over these bought back
and held in treasury shares, and has no voting rights. No dividend
of other distribution of the Company's assets can be paid to the
Company in respect of the treasury shares that it holds.
As at 30 June 2019 the 255,778 own shares bought back represent
1.78% of the total allotted, called up and fully paid ordinary
shares of the Company of 14,604,240.
12. Acquisition of Limited Liability Vehicles
Nameco (No. 409) Limited
On 6 February 2019, Helios Underwriting plc acquired 100% of the
issued share capital of Nameco (No. 409) Limited for a total
consideration of GBP1,346,000. Nameco (No. 409) Limited is
incorporated in England and Wales and is a corporate member of
Lloyd's.
The acquisition has been accounted for using the acquisition
method of accounting. After the alignment of accounting policies
and other adjustments to the valuation of assets and liabilities to
reflect their fair value at acquisition, the fair value of the net
assets was GBP1,631,000. Negative goodwill of GBP285,000 arose on
acquisition which has been recognised as goodwill on bargain
purchase in the income statement. The following table explains the
fair value adjustments made to the carrying values of the major
categories of assets and liabilities at the date of
acquisition:
Carrying value Adjustments Fair value
GBP'000 GBP'000 GBP'000
------------------------------------------------------------------- -------------- ----------- ----------
Intangible assets 11 429 440
Financial assets at fair value through profit or loss 1,360 - 1,360
Reinsurance assets:
- reinsurers' share of claims outstanding 552 - 552
- reinsurers' share of unearned premium 176 - 176
Other receivables, including insurance and reinsurance receivables 1,826 - 1,826
Deferred acquisition cost 139 - 139
Prepayments and accrued income 10 - 10
Cash and cash equivalents 336 - 336
Insurance liabilities:
- claims outstanding (1,974) - (1,974)
- unearned premium (648) - (648)
Deferred income tax liabilities (2) (82) (84)
Other payables, including insurance and reinsurance payables (465) - (465)
Accruals and deferred income (37) - (37)
------------------------------------------------------------------- -------------- ----------- ----------
Net assets acquired 1,284 347 1,631
------------------------------------------------------------------- -------------- ----------- ----------
Satisfied by:
Cash and cash equivalents 1,346 - 1,346
Loan paid on acquisition - - -
------------------------------------------------------------------- -------------- ----------- ----------
Total consideration (1,346) - (1,346)
------------------------------------------------------------------- -------------- ----------- ----------
Negative goodwill 62 (347) (285)
------------------------------------------------------------------- -------------- ----------- ----------
2017 year 2018 year 2019 year
of account of account of account
------------------ ----------- ----------- -----------
Capacity acquired 1,194,112 1,230,299 1,069,040
------------------ ----------- ----------- -----------
The net earned premium and profit of Nameco (No. 409) Limited
for the period since the acquisition date to 30 June 2019 are
GBP349,000 and GBP7,000 respectively.
Negative goodwill has arisen on the acquisition of Nameco (No.
409) Limited as a result of the purchase consideration being at a
discount to the fair value of net assets acquired.
13. Related party transactions
Helios Underwriting plc has inter-company loans with its
subsidiaries which are repayable on three months' notice provided
it does not jeopardise each company's ability to meet its
liabilities as they fall due. All inter-company loans are therefore
classed as falling due within one year. The amounts outstanding as
at 30 June 2019 are set out below:
30 June 30 June 31 December
2019 Unaudited 2018 Unaudited 2018
Company GBP'000 GBP'000 GBP'000
----------------------------------------------------- --------------- --------------- -----------
Balances due from/(to) Group companies at the period
end:
Hampden Corporate Member Limited 66 (103) 265
Nameco (No. 365) Limited (47) (61) (36)
Nameco (No. 605) Limited (104) (153) (16)
Nameco (No. 321) Limited (21) (9) 4
Nameco (No. 917) Limited 3,473 6,483 3,812
Nameco (No. 229) Limited (20) (10) 3
Nameco (No. 518) Limited (14) (40) 20
Nameco (No. 804) Limited (114) 11 (45)
Halperin Underwriting Limited (12) (29) 7
Bernul Limited 40 13 66
Dumasco Limited 38 (43) 38
Nameco (No. 311) Limited (4) (37) 20
Nameco (No. 402) Limited (164) (194) (143)
Updown Underwriting Limited (50) 53 (21)
Nameco (No. 507) Limited 43 32 91
Nameco (No. 76) Limited (173) (41) (141)
Kempton Underwriting Limited (30) 62 2
Devon Underwriting Limited 104 220 138
Nameco (No 346) Limited (336) (93) (263)
Pooks Limited 197 464 345
Charmac Underwriting Limited (371) (378) (351)
Nottus (No 51) Limited 11 232 35
Chapman /underwriting Limited 403 590 383
Llewellyn House Underwriting Limited 34 - 63
Advantage DCP Limited (1,019) 72
Romsey Underwriting Limited 1,188 459
Nameco (No. 409) Limited (598)
Nomina No 035 LLP - - -
Nomina No 342 LLP - - -
Nomina No 380 LLP - - -
Nomina No 372 LLP - - -
Salviscount LLP - - -
Inversanda LLP - - -
Fyshe UTG LLP - - -
Nomina No 505 LLP - - -
Nomina No 321 LLP - - -
Helios UTG Partner Limited 777 1,113 811
RBC CEES Trustee Limited 50 50 50
----------------------------------------------------- --------------- --------------- -----------
Total 3,347 8,132 5,668
----------------------------------------------------- --------------- --------------- -----------
Helios Underwriting plc and its subsidiaries have entered into a
management agreement with Nomina plc. Jeremy Evans, a Director of
Helios Underwriting plc and its subsidiary companies, is also a
Director of Nomina plc. Under the agreement, Nomina plc provides
management and administration, financial, tax and accounting
services to the Group for an annual fee of GBP180,000 (2018:
GBP160,000).
The Limited Liability Vehicles have entered into a members'
agent agreement with Hampden Agencies Limited. Jeremy Evans, a
Director of Helios Underwriting plc and its subsidiary companies,
is also a director of Hampden Capital plc, which controls Hampden
Agencies Limited. Under the agreement, the Limited Liability
Vehicles will pay Hampden Agencies Limited a fee based on a fixed
amount, which will vary depending upon the number of syndicates the
Limited Liability Vehicles underwrite on a bespoke basis, and a
variable amount depending on the level of underwriting through the
members' agent pooling arrangements. In addition, the Limited
Liability Vehicles will pay profit commission on a sliding scale
from 1% of the net profit up to a maximum of 10%. The total fees
payable for 2019 are set out below:
30 June 30 June 31 December
2019 Unaudited 2018 Unaudited 2018
Company GBP'000 GBP'000 GBP'000
------------------------------------- --------------- --------------- -----------
Hampden Corporate Member Limited - - -
Nameco (No. 365) Limited - - -
Nameco (No. 605) Limited - - -
Nameco (No. 321) Limited - - -
Nameco (No. 917) Limited 67 58 57
Nameco (No. 229) Limited - - -
Nameco (No. 518) Limited - - -
Nameco (No. 804) Limited - - -
Halperin Underwriting Limited - - -
Bernul Limited - - -
Dumasco Limited - - -
Nameco (No. 311) Limited - 10 -
Nameco (No. 402) Limited - 11 -
Updown Underwriting Limited - - -
Nameco (No. 507) Limited - 15 -
Nameco (No. 76) Limited - 2 -
Kempton Underwriting Limited - 2 7
Devon Underwriting Limited - 7 44
Nameco (No 346) Limited 23 44 6
Pooks Limited - 6 22
Charmac Underwriting Limited 2 22 13
Nottus (No 51) Limited 2 13 8
Chapman Underwriting Limited 22 - 54
Llewellyn House Underwriting Limited - - 35
Advantage DCP Limited 10 - -
Romsey Underwriting Limited 35 - -
Nomina No 035 LLP - - -
Nomina No 342 LLP - - -
Nomina No 380 LLP - - -
Nomina No 372 LLP - - 18
Salviscount LLP 4 18 6
Inversanda LLP - - 18
Fyshe Underwriting LLP - - 8
Nomina No 505 LLP 2 - 14
Nomina No 321 LLP 6 - 8
Nameco (No. 409) Limited 8 - -
Helios UTG Partner Limited - - -
------------------------------------- --------------- --------------- -----------
Total 181 208 313
------------------------------------- --------------- --------------- -----------
The Group entered into quota share reinsurance contracts for the
2017, 2018 and 2019 years of account with protected cell companies
of Hampden Insurance PCC (Guernsey) Limited. The Limited Liability
Vehicles' underwriting year of account quota share participations
are set out below:
Company or partnership 2017 2018 2019
------------------------------ ---- ---- ----
Hampden Corporate Member
Limited - - -
Nameco (No. 365) Limited - - -
Nameco (No. 605) Limited - - -
Nameco (No. 321) Limited - - -
Nameco (No. 917) Limited 70% 70% 70%
Nameco (No. 229) Limited - - -
Nameco (No. 518) Limited - - -
Nameco (No. 804) Limited - - -
Halperin Underwriting Limited - - -
Bernul Limited - - -
Dumasco Limited - - -
Nameco (No. 311) Limited - - -
Nameco (No. 402) Limited - - -
Updown Underwriting Limited - - -
Nameco (No. 507) Limited - - -
Nameco (No. 76) Limited - - -
Kempton Underwriting Limited - - -
Devon Underwriting Limited 70% 70% -
Nameco (No. 346) Limited 70% 70% 70%
Pooks Limited 70% 70% -
Charmac Underwriting Limited 70% 70% -
Nottus (No 51) Limited 70% 70% -
Chapman Underwriting Limited - 70% 70%
Helios UTG Partner Limited - - -
Nomina No 035 LLP - - -
Nomina No 342 LLP - - -
Nomina No 380 LLP - - -
Nomina No 372 LLP - - -
Salviscount LLP 70% 70% -
Inversanda LLP 70% 70% -
Fyshe Underwriting LLP - - -
Nomina No 505 LLP - - -
Llewellyn House Underwriting
Limited - - -
Advantage DCP Limited - - 70%
Romsey Underwriting Limited - - 70%
Nomina No 321 LLP - - 70%
Nameco (No. 409) Limited - 70% 70%
------------------------------ ---- ---- ----
Nigel Hanbury, a Director of Helios Underwriting plc and its
subsidiary companies, is also a director and majority shareholder
in Hampden Insurance Guernsey PCC Limited. Hampden Capital plc, a
substantial shareholder in Helios Underwriting plc, is also a
substantial shareholder in Hampden Insurance Guernsey PCC Limited -
Cell 6. Under the agreement, the Group accrued a net reinsurance
premium recovery of GBP3,968,000 (2018: GBP5,176,000) during the
period.
In July 2019, Nigel Hanbury, a Director of Helios Underwriting
Plc has sold to the Group a corporate vehicle, Nameco (No 1113)
Limited, refer to note 16.
14. Ultimate controlling party
The Directors consider that the Group has no ultimate
controlling party.
14. Syndicate participations
The syndicates and members' agent pooling arrangements ("MAPA")
in which the Company's subsidiaries participate as corporate
members of Lloyd's are as follows:
Allocated capacity per year of account
------------------------ -------------------------------------- ----------------------------------------------
2016 2017(]) 2018 2019
Syndicate or MAPA number Managing or members' agent GBP GBP GBP GBP
------------------------ -------------------------------------- ---------- ---------- ---------- ----------
33 Hiscox Syndicates Limited 4,417,568 5,636,551 7,461,603 6,686,370
218 ERS Syndicate Management Limited 2,073,904 2,738,416 4,306,769 4,368,248
308 Tokio Marine Kiln Syndicates Limited 132,000 132,000 - -
318 Beaufort Underwriting Agency Limited 866,250 866,250 866,250 836,250
386 QBE Underwriting Limited 1,391,616 1,127,934 1,171,776 1,225,267
510 Tokio Marine Kiln Syndicates Limited 8,221,084 8,891,847 9,198,519 9,352,291
557 Tokio Marine Kiln Syndicates Limited 1,028,547 830,415 650,201 650,201
609 Atrium Underwriters Limited 4,101,838 4,160,681 4,667,260 4,777,862
623 Beazley Furlonge Limited 5,205,716 6,441,574 7,635,491 8,037,706
727 S A Meacock & Company Limited 1,078,662 1,086,144 1,110,693 1,140,748
1176 Chaucer Syndicates Limited 661,905 722,837 949,535 949,535
1200 Argo Managing Agency Limited 267,554 77,143 - -
1729 Asta Managing Agency Limited 271,586 53,353 233,925 -
1884 Charles Taylor Managing Agency Limited 325,000 17,500 - -
1910 Asta Managing Agency Limited 1,282,653 - - -
1969 Apollo Syndicate Management Limited 528,396 322,343 131,082 -
1991 R&O Managing Agency Limited 455,867 551,641 - -
2010 Cathedral Underwriting Limited 1,856,032 1,851,493 1,928,249 1,976,199
2014 Pembroke Managing Agency Limited 2,670,843 2,068,606 330,000 -
2121 Argenta Syndicate Management Limited 731,250 920,833 920,833 920,833
2525 Asta Managing Agency Limited 269,052 271,196 367,934 465,078
2689 Asta Managing Agency Limited - 1,432,508 350,000 -
2791 Managing Agency Partners Limited 4,871,833 4,945,540 5,156,597 5,253,593
2988 Brit Syndicates Limited - 65,763 200,000 -
4444 Canopius Managing Agents Limited 735,429 678,397 1,093,635 -
5820 ANV Syndicates Limited 1,174,479 - - -
5886 Asta Managing Agency Limited - 108,780 154,147 207,968
6103 Managing Agency Partners Limited 268,518 302,354 1,177,062 1,177,062
6104 Hiscox Syndicates Limited 1,833,266 1,008,862 1,012,697 1,016,516
6107 Beazley Furlonge Limited 602,183 641,390 957,286 1,180,999
6111 Catlin Underwriting Agencies Limited 2,528,243 278,279 249,065 -
6117 Argo Managing Agency Limited 1,923,344 2,924,651 3,081,000 2,905,074
7066 Members' agent pooling arrangement 810,356 890,580 983,154 -
7200 Members' agent pooling arrangement 204,504 163,920 - -
7201 Members' agent pooling arrangement 1,046,079 866,838 - -
7202 Members' agent pooling arrangement 378,539 313,269 - -
7203 Members' agent pooling arrangement 101,811 97,098 - -
7211 Members' agent pooling arrangement 175,265 192,184 - -
7215 Members' agent pooling arrangement 150,917 164,129 - -
7217 Members' agent pooling arrangement 274,095 288,521 348,378 250,000
7227 Members' agent pooling arrangement 81,978 5,521 4,817 -
7231 Members' agent pooling arrangement - 240,000 240,000 286,665
------------------------ -------------------------------------- ---------- ---------- ---------- ----------
Total 54,998,162 54,377,341 56,937,958 53,664,465
------------------------ -------------------------------------- ---------- ---------- ---------- ----------
15. Group-owned net assets
The Group statement of financial position includes the following
assets and liabilities held by the syndicates on which the Group
participates. These assets are subject to trust deeds for the
benefit of the relevant syndicates' insurance creditors. The table
below shows the split of the statement of financial position
between Group and syndicate assets and liabilities:
30 June 2019 30 June 2018 31 December 2018
------------------------- ----------------------------- ----------------------------- -----------------------------
Group Syndicate Total Group Syndicate Total Group Syndicate Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Assets
Intangible assets 16,490 - 16,490 12,257 - 12,257 16,051 - 16,051
Financial assets at fair
value through profit or
loss 10,850 45,657 56,507 8,124 33,587 41,711 8,388 49,687 58,075
Reinsurance assets: - - - - -
- reinsurers' share of
claims outstanding 61 21,172 21,233 449 13,715 14,164 - 22,698 22,698
- reinsurers' share of
unearned premium - 7,163 7,163 - 4,791 4,791 - 4,057 4,057
Other receivables,
including
insurance and
reinsurance
receivables 8,151 42,566 50,717 3,772 32,407 36,179 10,156 42,782 52,938
Deferred acquisition
costs - 6,228 6,228 - 4,382 4,382 - 6782 6,782
Prepayments and accrued
income 179 522 701 260 382 642 - 439 439
Cash and cash equivalents 2,018 4,979 6,997 4,139 3,900 8,039 9,717 2,485 12,202
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Total assets 37,749 128,287 166,036 29,001 93,164 122,165 44,312 128,930 173,242
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Liabilities
Insurance liabilities:
- claims outstanding - 80,204 80,204 - 55,685 55,685 - 88,032 88,032
- unearned premium - 30,631 30,631 - 20,773 20,773 - 24,772 24,772
Deferred income tax
liabilities 2,134 - 2,134 2,094 - 2,094 2,569 66 2,635
Borrowings 1,034 - 1,034 - - - 9,196 - 9,196
Other payables, including
insurance and
reinsurance
payables 1,694 25,774 27,468 1,678 19,831 21,509 2,650 22,671 25,321
Accruals and deferred
income 3,171 326 3,497 826 305 1,131 1,241 1,000 2,241
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Total liabilities 8,033 136,935 144,968 4,598 96,594 101,192 15,656 136,541 152,197
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Equity attributable to
owners of the Parent
Share capital 1,510 - 1,510 1,510 - 1,510 1,510 - 1,510
Share premium 15,387 - 15,387 15,387 - 15,387 15,387 - 15,387
Other reserves (50) - (50) (50) - (50) (50) - (50)
Retained earnings 12,869 (8,648) 4,221 7,556 (3,430) 4,126 11,809 (7,611) 4,198
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Total equity 29,716 (8,648) 21,068 24,403 (3,430) 20,973 28,656 (7,611) 21,045
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
Total liabilities and
equity 37,749 128,287 166,036 29,001 93,164 122,165 44,312 128,930 173,242
------------------------- -------- --------- -------- -------- --------- -------- -------- --------- --------
16. Events after the financial reporting period
Acquisitions
Nameco (No. 1113) Limited
On 17 July 2019, Helios Underwriting plc acquired 100% of the
issued share capital of Nameco (No. 1113) Limited for a total
consideration of GBP2,036,000. Nameco (No. 1113) Limited is
incorporated in England and Wales and is a corporate member of
Lloyd's.
The acquisition has been accounted for using the acquisition
method of accounting. After the alignment of accounting policies
and other adjustments to the valuation of assets and liabilities to
reflect their fair value at acquisition, the fair value of the net
assets was GBP2,169,000. Negative goodwill of GBP133,000 arose on
acquisition which will be recognised as goodwill on bargain
purchase in the income statement for the year ending 31 December
2019. The following table explains the fair value adjustments made
to the carrying values of the major categories of assets and
liabilities at the date of acquisition:
Carrying value Adjustments Fair value
GBP'000 GBP'000 GBP'000
------------------------------------------------------------------- -------------- ----------- ----------
Intangible assets 7 1,105 1,112
Financial assets at fair value through profit or loss 1,542 - 1,542
Reinsurance assets:
- reinsurers' share of claims outstanding 1,000 - 1,000
- reinsurers' share of unearned premium 63 - 63
Other receivables, including insurance and reinsurance receivables 2,629 1,083 3,712
Deferred acquisition cost 107 - 107
Prepayments and accrued income 23 - 23
Cash and cash equivalents 169 - 169
Insurance liabilities:
- claims outstanding (3,425) - (3,425)
- unearned premium (637) - (637)
Deferred income tax liabilities (3) (416) (419)
Other payables, including insurance and reinsurance payables (965) - (965)
Accruals and deferred income (113) - (113)
------------------------------------------------------------------- -------------- ----------- ----------
Net assets acquired 397 1,772 2,169
------------------------------------------------------------------- -------------- ----------- ----------
Satisfied by:
1,590,769 Ordinary 10p shares issued 2,036 - 2,036
Loan paid on acquisition - - -
------------------------------------------------------------------- -------------- ----------- ----------
Total consideration (2,036) - (2,036)
------------------------------------------------------------------- -------------- ----------- ----------
Negative goodwill 1,640 (1,772) (133)
------------------------------------------------------------------- -------------- ----------- ----------
2017 year 2018 year 2019 year
of account of account of account
------------------ ----------- ----------- -----------
Capacity acquired 1,796,419 2,035,238 1,994,276
------------------ ----------- ----------- -----------
The purchase consideration was satisfied by the issue of
1,590,769 Ordinary shares of nominal value of 10p each, issued at
the share price of GBP1.28 each.
Issued share capital
On 17 July 2019 the Company issued 1,590,769 ordinary 10p shares
as part of the acquisition settlement of Nameco (No.1113) Limited
(formally owned by Nigel Hanbury, and director and shareholder of
the Company) as explained above.
On 17 July 2019 the Company issued a further 1,695,897 ordinary
10p shares as part of the capital raise and an open offer, bringing
the total number of shares in issue (excluding Treasury shares and
uncalled partly paid shares) to 17,635,128 at the date of signing
these financial statements. The estimate of the costs incurred in
relation to the issue of shares at the date of signing these
accounts equates to GBP275,000.
Share buy back
Since the balance sheet date, the Company has continued its
share buyback programme. The Company has purchased a further
124,500 shares for a total consideration of GBP141,000. These
shares will be held in Treasury (see note 11)
The Interim Report will be made available in electronic format
on the Company's website, www.huwplc.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR DQLFLKKFBBBZ
(END) Dow Jones Newswires
September 27, 2019 02:00 ET (06:00 GMT)
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