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29 Aug 2019 | 08:51

Chesnara profits higher, but warns low interest rates will dent cash generation

Pension and Insurer administrator Chesnara reported a jump in profit, though warned that low interest rates would keep a lid on cash generation. For the six months ended 30 June, pretax profit surged to £66.6m from £26.5m a year earlier, underpinned by its UK and Scildon businesses.

'The Scildon development programme work is beginning to have a positive impact with total acquisition costs being 18% lower compared to the first half of 2018, with stable new business levels,' the company said.

Economic Value, rose 3% to £645.1m from a year earlier, despite the negative impact of reduced interest rates and a weakening of the Swedish krona, the company said.

The company raised its interim dividend by 3.00% to 7.43p per share (2018: 7.21p interim and 13.46p final). Divisional cash generation fell to £2.4m pounds from £53.1m a year earlier, with the company warning that lower interest would dent cash generation.

'We foresee a sustained period of low interest rates and this will continue to put a degree of downward pressure on our cash generation,' the company said. Story provided by
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