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Preliminary Results for the year ended 31 st December 2007 4th March 2008 Delivering sustainable growth
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Turnover473.2459.53%4% Underlying trading profit62.1 58.96%9% Trading margin13.1% 12.8% Underlying PBT82.576.58%11% Reported PBT95.290.85% Underlying EPS (diluted)26.0p23.8p9% Reported EPS* (diluted)33.7p21.6p56% Dividend per share20.5p20.5p 2007 Financial Highlights £M20072006Actualat CRE Growth * Includes discontinued operations CRE = Constant rates of exchange
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Retail196.88%9%36.637.219%19%38.121% London Market 193.5(2%)(1%)26.728.114%14%23.312% Risk & Insurance390.33%4%63.365.316%17%61.416% UK Employee Benefits81.57%7%13.713.717%17%13.117% Central Overheads1.4--(14.9)(15.0)--(15.6)- Total473.23%4%62.164.013%13%58.913% Actual Growth at CREActualat CREActualat CREProfitMargin 2007 Trading Profit Good results despite difficult trading conditions 20072006 Turnover Trading ProfitTrading MarginTrading £M
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Actual Growth ProfitMarginProfitMargin Australia/NZ65.610%16.325%15.726% Asia33.26%6.921%6.420% UK & Europe60.016%10.317%10.120% Canada18.52%2.513%2.614% Latin America16.1(11%)1.38%3.519% Insurance Management3.415%(0.7)(22%)(0.2) (8%) TOTAL196.88%36.619%38.121% Retail Strong revenue growth 2007 2006 TradingTurnover £M Trading
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Jardine Lloyd Thompson Ltd109.12%3%15.015.314%14%8.58% Actual Growth at CREActualat CREActualat CREProfitMargin London Market Operations Jardine Lloyd Thompson Limited 20072006 Turnover Trading ProfitTrading MarginTrading £M Clear benefits from cost savings
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Lloyd & Partners41.2(5%)(3%)6.87.117%17%10.224% Actual Growth at CREActualat CREActualat CREProfitMargin 20072006 Turnover Trading ProfitTrading MarginTrading £M Investments made to broaden business London Market Operations Lloyd & Partners
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc JLT Re43.2(8%)(5%)4.95.711%13%4.610% Growing non-marine activities Actual Growth at CREActualat CREActualat CREProfitMargin 20072006 Turnover Trading ProfitTrading MarginTrading £M London Market Operations JLT Re
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Employee Benefits Another year of good revenue growth Actual Growth ProfitMarginProfitMargin 2007 2006 Turnover Trading £M UK Employee Benefits81.57%13.717%13.117%
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc JLT Today – “Fit for purpose” Repair work completed Moving to an external focus Implementing strategic actions to underpin JLT’s future success Delivering sustainable growth
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc JLT in 2008 Quality: to generate improved performance despite headwinds and business change
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc JLT in 2008 Quality: to generate improved performance despite headwinds and business change of earnings due to balance of activities
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Group Revenues Risk & Insurance 83% Employee Benefits 17% Jardine Lloyd Thompson Group London Markets 41% Jardine Lloyd Thompson Ltd Specialty 23% Lloyd & Partners Wholesale 9% JLT Re Reinsurance/ Aviation 9% Percentage shown is contribution to the Group’s 2007 revenues Retail 42% UK/ Europe 13% Australia & NZ 14% Latin America 3% Canada 4% Asia 7% Insurance Management 1%
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc JLT in 2008 Quality: to generate improved performance despite headwinds and business change of earnings due to balance of activities growth without high-risk corporate activity Added momentum to take JLT forward
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Jim Rush Group Finance Director 4 th March 2008 Financial Review
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Key Financial Messages 1. Achieving profitable growth 2. Strong financial position 3. Tight cost control and additional savings
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Profit and Loss £M 20072006Change Underlying trading profit62593 Investment income / finance costs / associates20173 Underlying PBT82766 Exceptional items and impairments1315(2) PBT95914 Tax expense(22)(29)7 Loss on disposal of discontinued US operations-(15)15 Minorities(1) - PAT (after minorities)724626 EPS33.7p21.6p12.1p Underlying PAT Underlying EPS Total Dividend per share 56 26.0p 20.5p 51 23.8p 20.5p 5 2.2p -
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Underlying Diluted EPS Pence 22.7p 23.8p + 4.8% 26.0p + 9.2% 200520072006 Dividend maintained at 20.5p for the full year
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Cost savings & improvements London Market restructuring Achieved £10m p.a. total saving Core processing restructuring Projected £5m p.a. additional saving IT Improvements Additional £3m expensed in 2007
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Underlying operating costs by category £M20072006Change Revenue 473100% 460100%133.0% Operating costs: Staff costs (292)(61.6%) (287)(62.4%)(5)1.6% Premises (30)(6.5%) (29)(6.3%)(1)6.0% Other operating costs (80)(16.9%) (77)(16.7%)(3)4.2% Depreciation and amortisation (9)(1.9%) (8)(1.8%)(1)8.2% (411)(86.9%) (401)(87.2%)(10)2.6% Underlying trading profit 6213.1% 5912.8%35.6%
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Underlying operating costs by operation £M 2007 Change %2006 Jardine Lloyd Thompson Ltd9498(4)(4%) Lloyd & Partners (including Bermuda) 353324% JLT Re3843(5)(10%) 167174(7)(4%) London Market businesses: Retail1601441611% Employee Benefits686358% Central costs and other1620(4)(19%) 411401103%
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc 2007 / 2006 operating costs reconciliation £M 2006 Operating costs 401 Inflation in 2007 - £401m @ c3% 12 Impact of bolt-on acquisitions in 2007 8 421 2007 London Market cost savings (10) 2007 Operating costs 411
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Exceptional items and impairment £M Gain / (loss) before taxCash Exceptional items: Restructuring (London Market/Core processing) (10)(4) Other non-recurring items(3) (13)(7) SIACI – net gain on disposal 2914 167 Impairment of goodwill - Mexico(3)- 137
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc USD/GBP achieved FX rates and hedging 2006200720082009 ActualsForward rates Average market rates$1.84$2.00 Hedging rates achieved as at 29 Feb 2008$1.96 - Revenue % - Hedged75%25% Market forward rates as at 29 Feb 2008 $1.95$1.92 - Revenue % - Unhedged25%75% Potential achieved rates after hedging$1.96$1.93 - Revenue % - Hedged + Unhedged100% Actual achieved rates after hedging$1.82$1.85 - Revenue %100% Value of c $220 M revenue in £M £121£119£112£114 Approximate YOY revenue impact in £M(£12)(£2)(£7)£2
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Cash flow £M 20072006 Underlying EBITDA102101 Exceptional items paid(7)(11) EBITDA9590 Interest / tax / other(16)(23) Net working capital movements(27)5 Capex / intangibles(13)(8) Shares acquired – share ‘buy-back’/Employee trust (8)- Net (acquisitions) / disposals (9)49 Pension deficit funding – UK/USA/Canada (34)(14) (12)99 Dividends paid(46)(44) Foreign exchange-(5) (58)50
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Balance Sheet £M 20072006Change Goodwill and intangibles17115615 Deferred net tax assets2039(19) Fixed assets24231 Associates and investments321418 Net working capital3(23)26 Net pension deficit(27)(100)73 Net (debt) / cash (1)57(58) 22216656
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc Key Financial Messages 1. Achieving profitable growth Underlying EPS +9.2% 2. Strong financial position Minimal net debt, equity +34% 3. Tight cost control and additional savings Additional cost savings £5m
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Dominic Burke Group Chief Executive Building for Future Growth
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc JLT in 2008 Building for future growth Bolt-on acquisitions
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc JLT in 2008 Building for future growth Bolt-on acquisitions Start-up developments –JLT Online –Thistle Underwriters –ICAP-JLT –China
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc JLT in 2008 Building for future growth Bolt-on acquisitions Start-up developments –JLT Online –Thistle Underwriters –ICAP-JLT –China International co-ordination and collaboration
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc JLT in 2008 Building for future growth Bolt-on acquisitions Start-up developments –JLT Online –Thistle Underwriters –ICAP-JLT –China International co-ordination and collaboration Operational efficiency Delivering sustainable growth
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc The Outlook The headwinds continue Highly competitive market conditions Continued weak US Dollar Broker competition
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Preliminary Results for the year ending 31 st December 2007 Jardine Lloyd Thompson Group plc “Although still early in the year we expect further profitable growth in 2008. Looking further ahead we anticipate that the combined impact of actions taken over the past two years and our strategic initiatives will enable JLT to continue to deliver value to our shareholders, our clients, and our employees.” JLT - delivering sustainable growth
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