Member Article

Preston’s Chesnara profits and cash generation down

Preston’s Chesnara plc is a holding company engaged in the management of life and pension books in the UK and Western Europe.

The company who are the owners of Countrywide Assured, Protection Life Company Limited and Movestic Livförsäkringar AB have reported that profits and cash generation are down.

Profit on an IFRS basis before tax for the nine months ended 30 September 2014 are £30.3 million against £32.8 million for same period last year.

They attribute the lower profit to the weakening exchange rate of the Swedish Krona.

The group’s gross cash generation is £22.3 million for the nine months ended 30 September 2014 against a cash generation of £30.2 million for the same period last year.

The Group’s Q3 2014 pre-tax profit of £3.0 million compares with a profit of £11.0m in the equivalent three month period for 2013.

The company says that this is broadly driven by economic conditions, in particular reducing bond yields this quarter compared to rising bond yields in the same quarter in 2013.

As a result of market performance the Group results are less positive when compared with the equivalent quarter in 2013, when investment market performance was particularly positive.

Despite lower profits and cash generation the group is still keen to consider acquisitions and is open to the possibility.

This was posted in Bdaily's Members' News section by Sophia Taha .