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GAH Gable Hldgs

2.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Gable Hldgs LSE:GAH London Ordinary Share KYG3705F1019 ORDS 0.25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 2.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Gable Holdings Inc Half-year Report (3851L)

30/09/2016 2:30pm

UK Regulatory


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TIDMGAH

RNS Number : 3851L

Gable Holdings Inc

30 September 2016

30 September 2016

Gable Holdings Inc.

("Gable" "the Company" or "the Group")

Unaudited Half Year Results for the six month period ended 30 June 2016

Gable (AIM: GAH), the European non-life insurance company, announces results for the six month period ended 30 June 2016.

Summary of Results

 
                         6 Months ended             Year ended 
                             30 June               31 December 
---------------------  -----------------  -------------------- 
                           2016     2015                  2015 
                           GBPm     GBPm                  GBPm 
---------------------  --------  -------  -------------------- 
 Gross Written 
  Premiums                 61.7     51.7                  91.1 
---------------------  --------  -------  -------------------- 
 Net Earned Premiums       31.4     38.5                  59.7 
---------------------  --------  -------  -------------------- 
 Profit / (loss) 
  on constant 
  currency basis            1.1      2.6                (15.9) 
---------------------  --------  -------  -------------------- 
 EPS on constant 
  currency basis           0.76    1.92p              (11.75)p 
---------------------  --------  -------  -------------------- 
 

Profit / (loss) on constant currency basis for 2016 is stated after adding back the effect of foreign exchange losses of GBP3.4m (H1 2015: GBP1.2m, Full year 2015 GBP0.9m).

Business in the Half Year

-- Written premiums GBP61.7 million (2015: GBP51.7 million)

-- Profitable underwriting on constant currency basis

-- Cash and short term investments GBP73.9 million (2015: GBP40.0 million)

Outlook - Strategic Restructuring Plan

-- Excellent progress with the provision of alternative capacity for the group's book of business

-- Considerable progress has ensured that running costs are at minimum sustainable level with a view to creating a lean business available for recapitalisation

William Dewsall, Chief Executive, Gable Holdings Inc, commented:

"I am pleased that the first half of 2016 returned to profit on a constant currency basis. The impact of the introduction of Solvency II on small insurance companies such as Gable has been devastating. The legislation has met widespread criticism, and justifiably so. I have made good progress on my undertaking to find alternative capacity for our policyholders and I expect to make an announcement very soon. In the meantime we are preparing for an orderly management of the historical book and to restructure the company so that it is in a suitable form for recapitalisation."

 
 Gable Holdings Inc.           Tel: +44(0) 20 7337 7460 
  William Dewsall, Chief 
  Executive 
  Michael Hirschfield, Group 
  Finance Director 
  John Bick 
 
 Haggie Partners LLP           Tel : +44(0) 20 7562 4444 
  Peter Rigby 
 

About Gable Holdings Inc.

Gable is a European non-life insurance company underwriting a comprehensive range of specialist policies for the commercial sectors in the UK, Denmark, France, Germany, Italy, Norway, Spain and Sweden. Gable benefits from a low-cost online underwriting platform and the Company has continued to successfully grow its business geographically whilst simultaneously exploiting a range of niche insurance segments which exist across the EU, which is delivered through the EU passporting mechanism. Gable Holdings Inc is quoted on the London Stock

Exchange's AIM market.   For further information please visit www.gableholdings.com. 

Interim Statement 2016

Overview and results

Gable's results for the six-month period ended 30 June 2016 are as follows with gross written premium at GBP61.7 million (H1 2015: GBP51.7 million). Net earned premiums (earned income attributable to the Company) amounted to GBP31.4 million (H1 2015: GBP38.5 million) resulting in the insurance business returning to profit on a constant currency basis of GBP1.4 million (H1 2015: GBP2.6 million and full year 2015 Loss: GBP15.4 million). Where possible we maintain foreign currency assets to match relevant liabilities to minimise the ultimate exposure when settling non-Sterling claims. The impact on Sterling following the Brexit vote has led to a non-cash foreign exchange charge of GBP3.4 million giving a reported loss for the period of GBP2.3 million at the Group level.

At the end of the period cash balances and equivalents were GBP73.9 million (H1 2015: GBP40.0 million, 31 December 2015: GBP61.6 million).

During the period the Group continued to focus on delivering growth through leveraging its strong working relationships with selected brokers and broker networks to provide well priced bespoke insurance products to the commercial SME markets in Europe.

This period has been one of significant change for the business, the introduction of Solvency II on 1 January 2016 effectively rendered Gable's historic business model obsolete. Whilst a risk based approach such as that which forms the basis of Solvency II is supported by the Board, the method of implementing the rules under the Solvency II regime effectively requires small niche operations to hold excessive levels of capital. Gable estimates that it would need to hold a capital to GWP ratio of nearly one to one whereas an identical book of business as part of a wider, more diversified portfolio, within a major carrier would require a ratio of less than 30%. We announced that it would not be possible to raise the capital necessary to support the historical business model and ceased writing new business on 14 July 2016.

Outlook

On 15 July 2015 Gable announced that it had developed a strategic restructuring plan which included the provision of alternative capacity for the group's book of business as it falls due for renewal. I have made good progress on this and I am confident that an announcement will be made on this matter very shortly. In the meantime, we are preparing details plans to ensure the orderly management of the historical book and have entered into discussions with third party experts to provide independent oversight and technical administration assistance to the process.

Our plan includes a comprehensive review of the overhead cost base to ensure that running costs are cut back to a minimum sustainable level with a view to creating a lean business available for recapitalisation. Our Chairman and all non-executive directors have stood down from the Board and I should like to thank Jost Pilgrim, Blaise Craven, Andrew Trott, Julian Connerty and Kevin Alcock for their contributions during their tenure on the Board. On 12 September 2016 our Nomad, Zeus, resigned which has triggered a delisting process and, whilst we continue to explore the possibility of securing a replacement, if a nomad is not appointed by 13 October 2016, the Company's listing on AIM will be cancelled. The economic rights of shareholders are unchanged by this process which will result in a considerable cost saving as the maintenance of a listing was estimated to cost some GBP640,000 per year.

I shall continue to keep shareholders informed of developments over the coming period.

William Dewsall

Chief Executive

30 September 2016

GABLE HOLDINGS INC

Group Income Statement

For the six months ended 30 June 2016

 
                                           Six months   Six months          Year 
                                                ended        ended         ended 
                                              30 June      30 June   31 December 
                                                 2016         2015          2015 
                                   Notes      GBP000s      GBP000s       GBP000s 
                                            unaudited    unaudited       audited 
 
 Gross written premiums                        61,717       51,668        91,128 
 Change in provision 
  for gross unearned premiums        5       (21,276)      (8,793)      (18,534) 
--------------------------------  ------  -----------  -----------  ------------ 
 Gross earned premiums                         40,441       42,875        72,594 
 
 Outward reinsurance 
  premiums                                    (5,252)      (4,052)      (25,088) 
 Change in provision 
  for unearned 
  premiums - reinsurers' 
   share                             5        (3,760)        (328)        12,175 
--------------------------------  ------  -----------  -----------  ------------ 
 Net earned premiums                           31,429       38,495        59,681 
 
 Net investment return                          (378)          118           673 
 Total revenue from operations                 31,051       38,613        60,354 
 
 Gross claims paid                   5       (24,523)     (11,388)      (34,175) 
 Movement in gross technical 
  provisions                                  (5,874)     (10,855)      (30,467) 
--------------------------------  ------  -----------  -----------  ------------ 
 Gross claims incurred                       (30,397)     (22,243)      (64,642) 
 
 Reinsurers' share of 
  gross claims paid                               295          308           171 
 Movement in reinsurers' 
  share of technical provisions                 8,426            -        14,293 
--------------------------------  ------  -----------  -----------  ------------ 
 Reinsurers share of 
  claims incurred                               8,721          308        14,464 
 
 Net claims incurred                         (21,676)     (21,935)      (50,178) 
 
 Expenses incurred in 
  insurance activities                       (11,157)     (10,504)      (24,072) 
 Other operating expenses 
  - overheads                                   (540)      (8,567)       (6,110) 
 Total operating charges 
  (excluding impairment                      (11,697)     (19,071)      (30,182) 
  charges) 
  Impairment charges                                -            -       (4,250) 
 
 Loss from operations 
  and before taxation                         (2,322)      (2,393)      (24,256) 
 
 Taxation                                        (30)         (21)            47 
--------------------------------  ------  -----------  -----------  ------------ 
 Loss for the period 
  attributable 
  to owners of the parent            6        (2,352)      (2,414)      (24,209) 
--------------------------------  ------  -----------  -----------  ------------ 
 
  Earnings per share -               4        (1.74)p      (1.78)p      (17.89)p 
   basic 
   Earnings per share -               4       (1.74)p      (1.78)p      (17.89)p 
    diluted 
 

All operations are continuing.

GABLE HOLDINGS INC

Group Statement of Financial Position

At 30 June 2016

 
                                          30 June     30 June   31 December 
                                             2016        2015          2015 
                                Notes     GBP000s     GBP000s       GBP000s 
                                        unaudited   unaudited       audited 
 Assets 
 Intangible assets                              -       4,250             - 
 Property, plant and 
  equipment                                   418         396           444 
 Deferred acquisition 
  and reinsurance costs           5        21,303      14,883        16,231 
 Provision for unearned 
  reinsurance premium             5        11,437       2,694        15,197 
 Reinsurers' share of 
  technical provisions            5        22,100       3,200        17,452 
 Prepayments and accrued 
  income                                    1,163         573           659 
 Trade and other receivables               72,172      89,684        61,944 
 Cash and cash equivalents        8        73,925      39,999        61,609 
-----------------------------  ------  ----------  ----------  ------------ 
 Total assets                             202,518     155,679       173,536 
-----------------------------  ------  ----------  ----------  ------------ 
 
 Equity 
 Share capital                                338         338           338 
 Share premium account                     16,190      16,190        16,190 
 Share based premium 
  reserve                                     876       1,049           876 
 Other reserves                             3,875       3,875         3,875 
 Retained earnings                       (20,605)       3,542      (18,253) 
-----------------------------  ------  ----------  ----------  ------------ 
 Total equity attributable 
  to owners of the parent         6           674      24,994         3,026 
 
 Liabilities 
 Technical provisions             5       163,593     107,833       136,511 
  Reinsurers' share of 
   deferred acquisition 
   costs                                    1,257           -         2,776 
 Accruals and deferred 
  income                                      244         384           244 
 Current taxation                             110         342           292 
 Deferred taxation                            221          41            41 
  Loan notes and derivatives                4,011           -         3,966 
 Trade and other payables                  32,408      22,085        26,680 
-----------------------------  ------  ----------  ----------  ------------ 
 Total liabilities                        201,844     130,685       170,510 
 
 Total liabilities and 
  shareholders' funds                     202,518     155,679       173,536 
-----------------------------  ------  ----------  ----------  ------------ 
 
 
   Net asset value per 
   ordinary share                  4        0.50p      18.47p         2.24p 
 

GABLE HOLDINGS INC

Group Statement of Cash Flows

For the six months ended 30 June 2016

 
                                          Six months   Six months          Year 
                                               ended        ended         ended 
                                             30 June      30 June   31 December 
                                                2016         2015          2015 
                                  Notes      GBP000s      GBP000s       GBP000s 
                                           unaudited    unaudited       audited 
 
 Cash flows from operating 
  activities 
 Cash flows from operations         7         12,762        5,938        14,904 
 Interest received                             (378)           24           673 
 Tax paid                                       (31)        (310)         (162) 
 Net cash flows from 
  operating activities                        12,353        5,652        15,415 
 
 Cash flows from investing 
  activities 
 Purchase of tangible 
  fixed assets                                  (33)         (44)         (125) 
-------------------------------  ------  -----------  -----------  ------------ 
 Net cash flows from 
  investing activities                          (33)         (44)         (125) 
 
 Cash flows from financing 
  activities 
 Shares issued                                     -          335             - 
 Share issue costs 
  Loan notes issued net                            -            -             - 
  of costs                                         -            -         3,966 
 Net cash flows from 
  financing activities                             -          335         3,966 
 
 Net (decrease)/increase 
  in cash and cash equivalents      8         12,320        5,943        19,256 
 
 Cash and cash equivalents 
  at period beginning                         61,609       27,021        42,358 
 Exchange movements on 
  cash and cash equivalents                      (4)            9           (5) 
 
 Cash and cash equivalents 
  at period end                     8         73,925       32,973        61,609 
-------------------------------  ------  -----------  -----------  ------------ 
 

GABLE HOLDINGS INC

Notes to the Interim Consolidated Financial Statements

For the six months ended 30 June 2016

1. Basis of preparation

The Company was incorporated as a Corporation in the Cayman Islands which does not prescribe the adoption of any particular accounting framework. These interim financial statements have been prepared under the historical cost convention and in accordance with the requirements of International Financial Reporting Standards ("IFRS") endorsed by the European Union, in so far as they apply to interim statements.

The Group financial statements consolidate the financial statements of Gable Holdings Inc and subsidiary undertakings made up to 30 June 2016.

2. Accounting policies

There have been no changes to the Group's accounting policies as set out in the Group's financial statements for the year ended 31 December 2015 and, as such, those accounting policies have been applied to these interim statements.

3. Segmental information

The Group's business is the provision of insurance products and it has, in the six months to 30 June 2016, derived its business from the United Kingdom, France, Spain, Norway, Denmark, Germany and Italy.

4. Earnings and net asset value per share

The calculation of basic and diluted earnings per share is based on the net loss after tax of GBP2,352,000 (six months ended 30 June 2015: loss of GBP2,414,000, full year ended 31 December 2015: loss of GBP24,209,000) divided by the weighted average number of shares in issue during the period of 135,319,833 (six months ended 30 June 2015: 135,319,833, full year ended 31 December 2015: 135,319,833

The net asset value per share is calculated by dividing the total equity of GBP674,000 (30 June 2015: GBP24,994,000, 31 December 2015: GBP3,026,000) by the number of shares in issue at the end of the period - 135,319,833 (30 June 2015: 135,319,833, 31 December 2015: 135,319,833).

5. Insurance assets and liabilities

 
                                   Six months   Six months          Year 
                                        ended        ended         ended 
                                      30 June      30 June   31 December 
                                         2016         2015          2015 
                                      GBP000s      GBP000s       GBP000s 
                                    unaudited    unaudited       audited 
 Insurance assets 
 Deferred acquisition 
  and reinsurance costs                21,303       14,883        16,231 
 Provision for unearned 
  reinsurance premium                  11,437        2,694        15,197 
 Reinsurers' share of 
  technical provisions                 22.100        3,200        17,452 
--------------------------------  -----------  -----------  ------------ 
                                       54,840       20,777        48,880 
--------------------------------  -----------  -----------  ------------ 
 
 Insurance liabilities 
 Technical provisions                  76,475       51,733        70,670 
 Provisions for unearned 
  premium                              87,118       56,100        65,841 
  Reinsurers' share of 
   deferred acquisition 
   costs                                1,257            -         2,776 
--------------------------------  -----------  -----------  ------------ 
                                      164,850      107,833       139,287 
--------------------------------  -----------  -----------  ------------ 
 
 Claims reserved 
 At 1 January                          53,218       37,485        37,485 
 Claims notified and reserved 
  in the period, net of 
  RI                                   34,078       19,143        37,924 
 Claims paid in the year 
  net of reinsurance recoveries      (24,228)     (11,080)      (34,004) 
 Incurred but not reported 
  movement in the period, 
  net of reinsurers' share           (12,030)        3,023        11,850 
 Exchange movement                      3,337         (38)          (37) 
--------------------------------  -----------  -----------  ------------ 
 At 30 June/31 December                54,375       48,533        53,218 
--------------------------------  -----------  -----------  ------------ 
 
 Movement for provision 
  in unearned premium 
 At 1 January                          65,841       47,307        47,307 
 Movement in provision 
  for the period                       21,276        8,793        18,534 
 At 30 June/31 December                87,117       56,100        65,841 
--------------------------------  -----------  -----------  ------------ 
 
 Movement in provision 
  for unearned reinsurance 
  premium 
 At 1 January                          15.197        3,022         3,022 
 Movement in provision 
  for the period                      (3,760)        (328)        12,175 
--------------------------------  -----------  -----------  ------------ 
 At 30 June/31 December                11,437        2,694        15,197 
--------------------------------  -----------  -----------  ------------ 
 
   Movement in deferred 
   acquisition costs 
 At 1 January                          16,231       13,153        13,153 
 Movement in provision 
  for the period                        5,072        1,730         3,077 
--------------------------------  -----------  -----------  ------------ 
 At 30 June/31 December                21,303       14,883        16,231 
--------------------------------  -----------  -----------  ------------ 
 
 
 Movement in reinsurers' 
  share of technical provisions 
 At 1 January                      17,452   3,200    3,200 
 Movement in provision 
  for the period                    5,149       -   14,293 
  Exchange movement                 (501)       -     (41) 
--------------------------------  -------  ------  ------- 
 At 30 June/31 December            22,100   3,200   17,452 
--------------------------------  -------  ------  ------- 
 
 
 Movement in reinsurers' 
  share of deferred acquisition 
  costs 
 At 1 January                        2.776   -       - 
 Movement in provision 
  for the period                   (1,519)   -   2,776 
 At 30 June/31 December              1,257   -   2,776 
--------------------------------  --------      ------ 
 

6. Reconciliation of movements in shareholders' funds

 
                                  Six months   Six months          Year 
                                       ended        ended         ended 
                                     30 June      30 June   31 December 
                                        2016         2015          2015 
                                     GBP000s      GBP000s       GBP000s 
                                   unaudited    unaudited       audited 
 
 (Loss)/profit for the 
  period                             (2,352)      (2,414)      (24,209) 
 Shares issued in the                      -            -             - 
  year 
 Share issue costs                         -            -             - 
 Share based payment charge                -           99          (74) 
 Net increase in shareholders' 
  funds                              (2,352)      (2,315)      (24,283) 
 Equity shareholders' 
  funds brought forward                3,026       27,309        27,309 
-------------------------------  -----------  -----------  ------------ 
 Equity shareholders' 
  funds carried forward                  674       24,994         3,026 
-------------------------------  -----------  -----------  ------------ 
 

7. Reconciliation of profit for the period before taxation to net cash flows from operating activities

 
                                    Six months   Six months          Year 
                                         ended        ended         Ended 
                                       30 June      30 June   31 December 
                                          2016         2015          2015 
                                       GBP000s      GBP000s       GBP000s 
                                     unaudited    unaudited       Audited 
 
 (Loss)/profit for the 
  period before taxation               (2,322)      (2,393)      (24,256) 
 Interest received                         378        (118)         (673) 
 Non-cash exchange movements                 1            1             - 
 Depreciation of property, 
  plant and equipment                       63           60           122 
  Amortisation of derivatives               45            -             6 
 Share based payment charge                  -           99          (74) 
  Impairment of goodwill                     -            -         4,250 
 Increase in insurance 
  liabilities                           27,081       19,841        48,519 
 Increase in reinsurers' 
  share of technical provisions        (4,648)            -      (14,252) 
 Increase/(decrease) in 
  deferred acquisition 
   and reinsurance costs               (5,072)      (1,730)       (3,078) 
  Increase in reinsurers' 
   share of deferred acquisition 
   costs                               (1,519)            -         2,776 
 Decrease/(increase) in 
  provision for unearned 
  reinsurance premium                    3,760          328      (12,175) 
 Increase in receivables              (10,732)     (23,757)         3,897 
 Increase in payables                    5,727        5,387         9,842 
 Net cash flows from operating 
  activities                            12,762      (2,282)        14,904 
---------------------------------  -----------  -----------  ------------ 
 

8. Reconciliation of net cash flows to movement in net funds

 
                                  Six months   Six months          Year 
                                       ended        ended         ended 
                                     30 June      30 June   31 December 
                                        2016         2015          2015 
                                     GBP000s      GBP000s       GBP000s 
                                   unaudited    unaudited       audited 
 
 Change in cash for the 
  period                              12,320      (2,359)        19,256 
-------------------------------  -----------  -----------  ------------ 
 Change in net funds resulting 
  from cash flows                     12,320      (2,359)        19,256 
 Net funds brought forward            61,609       42,358        42,358 
 Exchange movements on 
  cash and cash equivalents              (4)            -           (5) 
-------------------------------  -----------  -----------  ------------ 
 Net funds carried forward            73,925       39,999        61,609 
-------------------------------  -----------  -----------  ------------ 
 

9. General information

The information for the period ended 30 June 2016 does not constitute statutory accounts as defined in the Companies Act 2006. The figures for the period ended 31 December 2015 have been extracted from the 2015 Financial Statements prepared under IFRS. The auditors' report on those accounts was unqualified and did not contain a statement under the provisions of the Companies Act 2006.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR LLFFVASIIVIR

(END) Dow Jones Newswires

September 30, 2016 09:30 ET (13:30 GMT)

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