TIDMJLT
RNS Number : 0720R
Jardine Lloyd Thompson Group PLC
26 February 2019
26 FEBRUARY 2019
Jardine Lloyd Thompson Group plc
PRELIMINARY RESULTS statement
FOR THE YEARED 31 DECEMBER 2018 (UNAUDITED)
Jardine Lloyd Thompson Group plc ("JLT" or the "Group")
announces its preliminary results for the year ended 31 December
2018. Due to the recommended cash offer for JLT by MMC Treasury
Holdings (UK) Limited (the "MMC transaction"), this statement
replaces JLT's usual announcement of its preliminary results and
provides an update on key financial items in accordance with
Listing Rule 9.7A.1. There will not be a presentation to investors
and analysts at JLT's office today.
As announced on 7 November 2018, the MMC transaction has been
approved by shareholders and is expected to complete in spring
2019, subject to the satisfaction or (where applicable) waiver of
the conditions set out in the scheme document published on 15
October 2018 (the "Scheme Document") (available to view at
https://www.jlt.com/investors/recommended-cash-acquisition-of-jlt).
The process of satisfying the anti-trust and regulatory conditions
is continuing, with MMC having received clearance from the US
anti-trust authority in October 2018.
group Financial Highlights(1)
-- Revenues of GBP1,451m, up 5%
-- Organic(2) revenue growth of 5%
-- Underlying(3) profit before tax of GBP233.6m, up 25%
-- Underlying(3) trading margin of 17.5%, up 240bps
-- Reported profit before tax of GBP88.1m, reflecting
GBP145.4m(4) of exceptional items consisting principally of MMC
transaction-related costs, regulatory-related costs and Global
Transformation Programme restructuring charges
-- Net Debt(5) of GBP535m (2017: GBP506m). Net Debt to EBITDA
was 1.8:1 on a reported basis, consistent with 2017
(1) 2017 figures restated for IFRS 15 Revenue from Contracts
with Customers
(2) Organic revenue growth is based on total revenue excluding
the effect of currency, acquisitions, disposals and investment
income
(3) Underlying results exclude exceptional items
(4) The MMC transaction-related costs have been estimated based
on anticipated completion in spring 2019
(5) Net Debt is defined as own funds less total borrowings net
of transaction costs
BUSINESS Highlights
-- All divisions delivered organic revenue growth year on year,
with 7% in Global Specialty and 7% in UK Employee Benefits.
-- Trading profit grew 21% year on year, driven by organic
revenue growth and the Global Transformation Programme. Trading
Profit increased by 25% in Global Specialty to GBP192.7m, 10% in
Global Reinsurance to GBP45.8m and 8% in Global Employee Benefits
to GBP51.2m.
-- US Specialty revenue increased by US$38.8m to US$134.4m, net
investment losses decreased to US$9.9m and the business remains on
track to achieve profit in 2019.
-- UK Employee Benefits increased trading profit by 55% year on
year to GBP21.6m, driven by organic revenue growth, combined with
higher trading margins. The business remains on track to achieve a
15% trading margin in 2019.
-- The Global Transformation Programme delivered benefits of
GBP20.7m for a cost of GBP28.6m and remains on track to deliver
further incremental benefits of GBP16.3m in 2019, and full
annualised benefits of GBP40m in 2020.
Exceptional items principally consist of MMC-related transaction
costs of GBP77.2m (predominantly staff costs relating to the
amortisation of remuneration payments and the acceleration of share
awards vesting outlined in the Scheme Document), estimated net
costs of GBP38.4m arising from the UK regulatory review disclosed
in JLT's 2017 Annual Report relating to enhanced transfer value
products, and Global Transformation Programme restructuring charges
of GBP28.6m.
In light of the cash consideration of GBP19.15 per share to be
paid by MMC to JLT shareholders on completion of the MMC
transaction, and consistent with the terms of the MMC cash offer,
no final dividend will be paid for the 2018 financial year.
Enquiries
Jardine Lloyd Thompson Group plc
Dominic Burke Group Chief Executive 020 7558 3373
Charles Rozes Group Finance Director 020 7558 3380
Paul Dransfield Head of Investor Relations 020 7528 4933
Brunswick Group LLP
Tom Burns/Rosheeka Field Brunswick Group LLP 020 7404 5959
Disclaimer
This document may contain forward-looking statements that may or
may not prove accurate. For example, statements regarding expected
revenue growth, margins and market trends are forward-looking
statements. Phrases such as "aim", "plan", "intend", "anticipate",
"well-placed", "believe", "estimate", "expect", "target",
"consider" and similar expressions are generally intended to
identify forward-looking statements. Forward-looking statements
involve known and unknown risks, uncertainties and other important
factors that could cause actual results to differ materially from
what is expressed or implied by the statements. Any forward-looking
statement is based on information available to JLT as of the date
of the statement. All written or oral forward-looking statements
attributable to JLT are qualified by this caution. JLT does not
undertake any obligation to update or revise any forward-looking
statement to reflect any change in circumstances.
LEI Number: 213800XRWB6SDDCZZ434
Condensed Income Statement Year ended 31 December 2018
-------------------------------------------
Exceptional
Underlying profit items Total
for the year ended 31 December 2018 GBP'000 GBP'000 GBP'000
------------------------------------ ----------------- ----------- -----------
Fees and commissions 1,438,416 - 1,438,416
------------------------------------ ----------------- ----------- -----------
Investment income 12,865 - 12,865
------------------------------------ ----------------- ----------- -----------
Operating costs (1,197,198) (145,442) (1,342,640)
------------------------------------ ----------------- ----------- -----------
Trading profit 254,083 (145,442) 108,641
------------------------------------ ----------------- ----------- -----------
Finance costs - net (23,562) - (23,562)
------------------------------------ ----------------- ----------- -----------
Share of results of associates 3,055 - 3,055
------------------------------------ ----------------- ----------- -----------
Profit before taxation 233,576 (145,442) 88,134
------------------------------------ ----------------- ----------- -----------
Income tax expense (56,653) 22,861 (33,792)
------------------------------------ ----------------- ----------- -----------
Profit for the year 176,923 (122,581) 54,342
------------------------------------ ----------------- ----------- -----------
Profit attributable to:
------------------------------------ ----------------- ----------- -----------
Owners of the parent 163,318 (120,317) 43,001
------------------------------------ ----------------- ----------- -----------
Non-controlling interests 13,605 (2,264) 11,341
------------------------------------ ----------------- ----------- -----------
Earnings per share attributable to the owners of the parent during the
year (expressed in pence per share)
---------------------------------------------------------------------------------
Basic earnings per share 77.0p 20.3p
------------------------------------ ----------------- ----------- -----------
Diluted earnings per share 74.4p 19.6p
------------------------------------ ----------------- ----------- -----------
Year ended 31 December 2017
(restated)
------------------------------------ -------------------------------------------
Exceptional
Underlying profit items Total
GBP'000 GBP'000 GBP'000
------------------------------------ ----------------- ----------- -----------
Fees and commissions 1,373,689 - 1,373,689
------------------------------------ ----------------- ----------- -----------
Investment income 7,474 - 7,474
------------------------------------ ----------------- ----------- -----------
Operating costs (1,171,999) (9,882) (1,181,881)
------------------------------------ ----------------- ----------- -----------
Trading profit 209,164 (9,882) 199,282
------------------------------------ ----------------- ----------- -----------
Finance costs - net (24,349) - (24,349)
------------------------------------ ----------------- ----------- -----------
Share of results of associates 2,149 - 2,149
------------------------------------ ----------------- ----------- -----------
Profit before taxation 186,964 (9,882) 177,082
------------------------------------ ----------------- ----------- -----------
Income tax expense (52,424) 422 (52,002)
------------------------------------ ----------------- ----------- -----------
Profit for the year 134,540 (9,460) 125,080
------------------------------------ ----------------- ----------- -----------
Profit attributable to:
------------------------------------ ----------------- ----------- -----------
Owners of the parent 123,154 (8,332) 114,822
------------------------------------ ----------------- ----------- -----------
Non-controlling interests 11,386 (1,128) 10,258
------------------------------------ ----------------- ----------- -----------
Earnings per share attributable to the owners of the parent during the
year (expressed in pence per share)
---------------------------------------------------------------------------------
Basic earnings per share 58.3p 54.4p
------------------------------------ ----------------- ----------- -----------
Diluted earnings per share 56.9p 53.0p
------------------------------------ ----------------- ----------- -----------
Condensed Balance Sheet
as at 31 December 2018 Restated
============================================================= ============ ============
2018 2017
=============================================================
GBP'000 GBP'000
============================================================= ============ ============
NET ASSETS
------------------------------------------------------------- ------------ ------------
Non-current assets
------------------------------------------------------------- ------------ ------------
Goodwill & other intangible assets 732,641 686,732
------------------------------------------------------------- ------------ ------------
Property, plant and equipment 66,770 68,645
------------------------------------------------------------- ------------ ------------
Investments in associates 54,234 53,055
------------------------------------------------------------- ------------ ------------
Other financial assets 20,385 16,858
------------------------------------------------------------- ------------ ------------
Derivative financial instruments 83,996 82,569
------------------------------------------------------------- ------------ ------------
Trade and other receivables* 60,355 39,950
------------------------------------------------------------- ------------ ------------
Deferred tax assets 76,696 63,751
============================================================= ============ ============
1,095,077 1,011,560
============================================================= ============ ============
Current assets
------------------------------------------------------------- ------------ ------------
Trade and other receivables* 648,063 564,301
------------------------------------------------------------- ------------ ------------
Current tax assets 7,219 -
------------------------------------------------------------- ------------ ------------
Derivative financial instruments 3,241 5,545
------------------------------------------------------------- ------------ ------------
Other financial assets 164,163 115,269
------------------------------------------------------------- ------------ ------------
Cash and cash equivalents 1,007,484 1,015,087
============================================================= ============ ============
1,830,170 1,700,202
============================================================= ============ ============
Current liabilities
Borrowings (17,867) (19,226)
Trade and other payables** (1,483,815) (1,280,245)
------------------------------------------------------------- ------------ ------------
Derivative financial instruments (9,634) (10,265)
------------------------------------------------------------- ------------ ------------
Current tax liabilities - (10,290)
------------------------------------------------------------- ------------ ------------
(1,511,316) (1,320,026)
============================================================= ============ ============
Net current assets 318,854 380,176
============================================================= ============ ============
Non-current liabilities
------------------------------------------------------------- ------------ ------------
Borrowings (715,525) (690,872)
Trade and other payables** (258,032) (247,678)
------------
Derivative financial instruments (112,617) (85,516)
------------------------------------------------------------- ------------ ------------
Deferred tax liabilities (11,656) (11,773)
------------------------------------------------------------- ------------ ------------
(1,097,830) (1,035,839)
------------------------------------------------------------- ------------ ------------
316,101 355,897
============================================================= ============ ============
TOTAL EQUITY
------------------------------------------------------------- ------------ ------------
Capital and reserves attributable to the owners
of the parent
------------------------------------------------------------- ------------ ------------
Shareholders' equity 296,132 336,444
------------------------------------------------------------- ------------ ------------
Non-controlling interests 19,969 19,453
============================================================= ============ ============
316,101 355,897
============================================================= ============ ============
*includes Contract Assets and Retirement benefit
surpluses
-------------------------------------------------------------
**includes Contract Liabilities, Provisions for
Liabilities and Charges and Retirement Benefit Obligations
The accounting policies applied in the preparation of the condensed
Income Statement and Balance Sheet are consistent with those of the
Interim Financial Statements for the 6 months ended 30 June 2018
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
FR EANASASKNEFF
(END) Dow Jones Newswires
February 26, 2019 02:01 ET (07:01 GMT)
Jardine Lloyd Thompson (LSE:JLT)
Historical Stock Chart
From May 2024 to Jun 2024
Jardine Lloyd Thompson (LSE:JLT)
Historical Stock Chart
From Jun 2023 to Jun 2024
