AUB Group reveals its hybrid work model
AUB Group is not the first big insurance industry company to adopt a formal policy around flexible work practices.
Written on 25 February, 2019
AUB Group Limited (ASX:AUB) has today announced a 1.8% increase in Adjusted Net Profit After Tax (Adjusted NPAT1) to reach $17.0m, up from $16.7m in 1H18, including costs relating to the Austbrokers Canberra fraud of $1.6m. Excluding costs relating to this matter, Adjusted NPAT1 grew 11.4%. The continued focus on diversifying revenue streams and developing holistic risk-ancillary services further advances the Group’s Total Risk Solutions strategy.
AUB Group CEO and Managing Director, Mark Searles, said: “Strong revenue and profit growth has been achieved in Insurance Broking in Australia and New Zealand, and also in SURA, our underwriting agency business. This has been driven by a combination of organic growth and anticipated premium rate increases, together with increased cross-collaboration across our businesses.”
On an Adjusted basis, earnings per share increased to 25.9 cents per share, up 0.23% over the prior comparable period. Good performances in Australian and New Zealand Insurance Broking and Underwriting Agencies were partially offset by the one-off revenue effects of a challenging NSW workers’ compensation market, costs relating to Austbrokers Canberra, and planned investment in Risk Services, which will catalyse the future growth of the division.
Consolidated Net Profit After Tax (Reported NPAT) decreased 16.5% to $19.8m in 1H19 (1H18: $23.8m) due to adjustments to carrying value of investments, and other non-cash accounting adjustments relating to mergers and acquisitions.
The company has declared an interim dividend of 13.5 cents per share fully franked (1H18: 13.5 cps), payable on 5th April 2019.
|Half Year Results Summary:
Highlights of the 1H19 results by operating area include:
Group Services and Corporate Costs
The Board has declared an interim fully franked dividend of 13.5 cents per share. This dividend is payable on 5th April 2019 to shareholders on the record date of 7th March 2019. No Dividend Reinvestment Plan (DRP) arrangements will be offered for the interim dividend.
In light of the recent equity capital raising, the interim dividend is maintained at 13.5 cents per share. In cash terms this represents an increase of $1.3m over prior comparable period.
Mark Searles, CEO & Managing Director and Mark Shanahan, Chief Financial Officer will host a webcast today at 10:00am AEST followed by a Q&A session – details below:
Direct DDI(s) for Teleconference:
Australia Access: 1800 093 431
New Zealand: 0800 452 257
International: +61 2 8047 9393
Teleconference Participant Pin Code: 60622882#
Webcast Audience Link: http://event.onlineseminarsolutions.com/wcc/r/1904799-1/3C4CE693A148450ECDE55C0DFDDCDC73
1 NPAT excluding adjustments to carrying values of associates, profit on sale and deconsolidation of controlled entities, contingent consideration adjustments, impairment charges, and amortisation of intangibles. Performance measure used by management to assess underlying business performance. Includes one-off adjustments of $1.6m in Austbrokers Canberra
2 Theoretical Ex-Rights Price
For further information, contact:
(02) 9018 8602
This release contains “forward-looking” statements. Forward-looking statements can generally be identified by the use of forward-looking words such as “anticipated”, “expected”, “projections”, “guidance, “forecast”, “estimates”, “could”, “may”, “target”, “consider”, “will” and other similar expressions. Forward looking statements, opinion and estimates are based on assumptions and contingencies which are subject to certain risks, uncertainties and change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, there can be no assurance that actual outcomes will not differ materially from these statements. To the fullest extent permitted by law, AUB Group and its directors, officers, employees, advisers, agents and intermediaries do not warrant that these forward looking statements relating to future matters will occur and disclaim any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions.
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