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Annual Results

Chesnara profits up

31 March 2016 09:28

Chesnara reports an IFRS profit before tax of GBP42.8m for the year to the end of December (2014: GBP28.8m) with strong underlying profit supplemented by a profit of GBP16.6m from the acquisition of the Waard Group.

The group reports gross cash generation of GBP44.2m (2014: GBP42.6m). This represents the cash generated from the day to day operations of its businesses. Strong cash generation from the UK business has continued and Movestic has made its first positive contribution (GBP5.1m).

And it says the acquisition of the Waard Group has added a further GBP39.9m of cash.

The recommended final dividend of 12.33p per share results in total dividend for the year of 18.94p per share (2014: 18.40p per share) - a 2.9% increase and the 11th successive rise in annual dividends.

Chief executive John Deane said: "Chesnara has a very clear strategic focus: delivering value from the existing books of business, making strategic acquisitions in the life and pensions sector and writing profitable new business in Sweden. 2015 has seen delivery in all three areas: The acquisition of the Waard Group has generated significant cash and, of equal importance, our entry to the Dutch market has enhanced the outlook for our ongoing acquisition strategy. Movestic has continued to grow and has made a material contribution to the Group's cash generation. We have completed our implementation work on Solvency II and remain well-capitalised under the new regime.

"Regarding the UK operations, I note our announcement made on 3 March 2016 regarding the FCA's investigation into whether disclosure of paid up and early transfer charges to the customers of Countrywide Assured and other providers was adequate to enable those customers to make informed decisions. We will of course co-operate fully with the FCA in its investigation. We also note that no conclusion has yet been reached as to whether there have been any breaches of regulatory requirements within CA.

"In light of the good financial results in the year the Board is pleased to recommend a final dividend of 12.33p per share, resulting in a full year dividend increase of 2.9% over 2014."

At 9:28am: (LON:CSN) Chesnara PLC share price was +11.75p at 318.75p

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