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April : 2014 Annual Results in line. A year of resilience and investment
Wednesday 25 February 2015
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Following the publication of the 2014 results, APRIL Chairman and CEO Bruno Rousset commented:
"2014 was a year of resilience and investment for APRIL. This year's results have enabled us to have a very clear view of where we stand. Over the past two years, APRIL's sector has been characterised by tightening regulations, a tough global economic environment and increased competition. Despite these conditions, our core businesses have held up well and we are seizing the opportunities provided by regulatory changes with enthusiasm and confidence. The international activities have been heavily impacted by non-recurring items last year. We need to continue our drive to adapt and streamline our business models in this sector over the next few years. We will capitalise on our strengths, in particular our capacity for segmentation, which enables us to offer bespoke solutions to many different types of customers, our reputation for quality of service and the commitment of our employees. These strengths, coupled with a management team bolstered by the appointment of Emmanuel Morandini as Deputy CEO, will enable us to get back on track towards sustainable growth."
APRIL posted 2014 consolidated sales of EUR766.3m, down 1.6% from 2013 based on reported data and down slightly (0.8%) like for like. Health & Personal Protection was down 0.9% based on reported data and down 1.0% like for like. The Property & Casualty division, mainly hit by foreign currency fluctuations, was down 3.6% based on reported data and down 1.4% like for like.
As a result of the significant investment required to prepare for the future and non-recurring expenses arising from the consolidation and streamlining of our businesses, fell 12.1% to EUR76.1m compared to 2013, as announced in our January press releases.
APRIL maintained a strong of 9.9%, with Health & Personal Protection holding up particularly well and a slight decline in Property & Casualty, mainly due to non-recurring items.
Group non-current expenses for the year came to EUR6.8m and included in particular the cost of rescinding a business as general agent in La Reunion (EUR4.8m) and the net costs of closing our operations in Argentina, Chile, Hungary and Belarus. As a result of these events, the Group posted an of EUR69.3m, down 18.4% from 2013.
After a EUR30.5m corporate income tax charge, (Group share) amounted to EUR36.6m.
The Health & Personal Protection division reported a 0.9% decline in resulting from a 2.6% fall in brokerage commissions, partially offset by a 2.0% rise in premiums.
The decrease in is due to the Company's decision to stop capturing loss-making individual employee health insurance policies under the National Interbranch Agreement (ANI). This decline was mitigated by the strong performance of the health insurance business in the senior and self-employed market segments and the growth in mortgage and group insurance, supported by solid fundamentals and Group investment. The increase in was driven by the expansion of the individual, group and expatriate health and personal protection portfolios.
Despite the initial impact of ANI, estimated at EUR3.7m, and the cost of around EUR3.8m for setting up the new IT systems, the division posted a stable current EBIT margin of 17.7%, due in part to improvements in the risk-carrying business and the Group's operations in Switzerland and the UK.
In , the 2.1% increase in was driven by new partnerships as well as the revival of affinity member operations within the framework of a significantly reinsured model in line with Group policy.
The 3.5% like-for-like fall in was due to the decline in revenues from the distribution network and the travel insurance and assistance business, affected by challenging economic conditions particularly in South America and Europe. This decline was partly offset by wholesale brokerage operations which delivered strong sales but were affected by increasing IT costs.
Moreover, non-recurring expenses, including the costs of restructuring and consolidating the business models of some of the foreign subsidiaries and cost related to the streamlining of our French operations, have pushed into a loss.
almost exclusively borne by the Property & Casualty division, led it to record an EBIT loss of EUR9.9m. These expenses include the impact of the withdrawal of some countries as part of the streamlining of our mobility and assistance solutions (for example, Argentina and Chile are now being managed by our US operations).
APRIL's balance sheet at 31 December 2014 reflects the Group's strong business model and prudent financial management: consolidated (Group share) stood at EUR578.9m, up EUR28.6m, while remained immaterial at EUR3.7m and , adjusted for deposit accounts held in relation to the Company's cash management policy, increased by EUR8.1m to EUR198.6m.
In accordance with our declared policy of guaranteeing a 25% dividend payout ratio supplemented by the remaining cash surplus after coverage of capital expenditure and the previous year's dividend, a dividend of EUR0.42 per share for 2014, corresponding to a total dividend payout of EUR17.2m, will be proposed at the Annual General Meeting.
This is equivalent to a dividend yield of 3.7% over the average share price since 1 January, exceeding analysts' expectations.
The Group starts 2015 with a strong financial position.
APRIL will pursue its strategy of being a multi-specialist operating in France and abroad by focusing on four main goals:
In order to achieve these goals, APRIL will capitalise on its core strengths: its capacity for segmentation, reputed quality of service and customer-centric approach, driven by a strengthened management team.
Within an overall environment that will remain demanding, 2015 will be a year of continued investment for the Group, enabling it to consolidate its business model and market positioning and ultimately return to growth.
At this early stage in the year, Group management expects current EBIT to stay relatively flat in 2015.
Sandrine Gallien +33 (0)4 72 36 49 31 - +33 (0)6 20 26 06 24 - sandrine.gallien@april.com
Julien Urgenti - +33 (0)4 72 00 46 55 - julien.urgenti@insign.fr
Upcoming events:
APRIL is an international insurance services group which has chosen innovation as the key to driving its development. Making this commitment, which means pushing boundaries and keeping things simple, has enabled it to become the leading wholesale broker in France and an international authority in the sector in less than 20 years. Over 3,800 staff members insure, advise, design, manage and distribute insurance solutions and assistance services for private individuals, professionals and businesses. APRIL reported consolidated sales of EUR766.3m in 2014. APRIL is listed on Euronext Paris (Segment B, SRD (deferred settlement service); eligible for the "PEA-PME" SME share savings scheme).
Regulated information is available in full from the "Finance" section on www.april.com .
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