Chesnara Share Discussion Threads

[owen999] 03/4/2008 13:20

Pre-tax profits rose to £27.7m from £25m. On an embedded value basis there was a fall from £30.6m to £6.4m though without one-offs the previous year profits were little changed at £12.1m against £12m.

Net assets at the year-end at the year-end were £187.3m (31 December 2006: £189.1m) with the group solvency ratio, post dividend at 312% (31 December 2006: 225%).

"Our recent experience of mortgage endowment mis-selling complaints has been generally positive," chairman Christopher Sporborg said, adding that the number of complaints has reduced significantly and an increasing proportion of those received are time-barred in line with FSA rules.

He added that the group made bids for two closed life businesses during 2007, neither of which was successful, and it is looking at other opportunities in financial services to fill in the gap as the life business winds down. If it fins nothing it will return capital to shareholders if nothing is found.

"A 22.4% increase in the final dividend reflects our confidence in the future as we continue to balance the opportunities we see in potential acquisitions against the needs of shareholders," chief executive Graham Kettleborough added.

[al101uk] 03/4/2008 11:10

The EEV side worried me and created a nice headline (Profits down 80%), until you read this:

On the European Embedded Value ("EEV") basis of reporting, the Group recognises
a pre-tax profit of £6.4m compared with £30.6m for 2006. Apart from the key
influences set out above, the pre-tax result has been reduced by economic
assumption changes just in excess of £4.0m. This adverse impact is almost
wholly offset by the favourable impact of related changes to the estimated
future liabilities for tax, which were further reduced by some £1.5m, being the
effect of the prospective reduction in the rate of Corporation Tax from 30% to
28%. As a result the net-of-tax EEV profit for the period is £12.1m compared
with £26.2m for 2006. The 2006 result included two non-replicating items of
note: a tax gain of £10.7m arising on the merger of the Group's life businesses
and the release of a reinsurer default reserve of £3.5m.

[owen999] 03/4/2008 08:06

A final dividend of 9.85p per share in respect of the year ended 31 December
2007 payable on 20 May 2008 to equity shareholders of the Parent Company
registered at the close of business 11 April 2008, the dividend record date, was
approved by the Directors after the balance sheet date. The resulting total
dividend of £10.3m has not been provided for in these financial statements and
there are no income tax consequences.
xd 9.4.08
------------------------final div up 22.4
IFRS BASIS increased by 11% to 27.7m(£25m)
eps up 32% 24.32p(18.41P)
EEV BASIS profits £6.4M (£30.6m )

[chairman2] 25/3/2008 22:41

soon

trying to bounce up
with the rest of the
UK life assurance sector

[bonzophil] 14/3/2008 11:03

Results are due out on 3rd April, I wonder if they will be announcing any return of capital as they havent managed to pull off any more purchases of closed life funds?

[owen999] 04/3/2008 10:22

CLICK TO ENLARGE
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Looking at stocks in these uncertain times in the table shown .
In my view the only stocks worth holding are .
BP
Chesnara
Close Enhanced Commodity Fund
Cosalt
Merryl Lynch Commodity Fund
Northern Foods

[chairman2] 25/2/2008 11:00

The thing to look at are the experience varainces in the Life assurance accounting

If - as is the case here - they are positive, and if their have been no assumption changes, then the underlying book has been conservatively accounted and will spin off cash fast, much faster, as a result.

The assets backing the policies are all matched gilt-edged securities. Need to watch interest rates for accounting impacts but in the key area of cash generation these streams are about as 100% as you can get.

[masurenguy] 24/2/2008 09:52

Historic PE and Yield both 8.5 and if year end profits follow the rise in H1 then the PE will fall to 7.3 in the current year.

The link to the H1 result RNS is shown below - this should give you some ratios to examine. The MC is currently at a premium of circa 54% to the VIF but I'm not sure how that compares with the average for other closed policy funds since I am not knowledgeable about the Insurance industry and their standard ratios.

[garfield31] 23/2/2008 18:13

Could anyone direct me to an easy source for valuing the assets of the company. Is the share at a premium? Seems to good to be true.

[washbrook] 14/2/2008 21:18

Candlestick Analysis
Today's Candlestick Patterns:
Doji
Bullish Harami Cross

[tipodochus] 14/2/2008 18:46

I don't know anything about graphs......but, that looks like a pennant and a break out in either direction could be significant.

Tipo

[phillis] 14/2/2008 15:36

Nice SIPP constituent

[chairman2] 14/2/2008 12:30

welcome

there are some supporters around
but not many post on the BB. I think
this is genuinely about income

[washbrook] 13/2/2008 09:58

Ventured into my first company since Feb 2007.
Bought 6000 shares.

[chairman2] 21/1/2008 13:44

thanks for the vote of confidence

unfortunately was holding all through 2007

[washbrook] 18/1/2008 16:49

Interesting company had an agency with City of Westminster assurance 43 years ago.
I have not held shares in any company since February 2007.
This would be one of the first companies to buy.
A good stock for Income seekers.

[robsy2] 14/1/2008 15:54

sign of confidence.

Closed-life fund consolidator Chesnara PLC said
its chief executive, Graham Kettleborough, has bought 4,000 shares in the
company at 162.90 pence each, lifting his holding to 30,000 shares or 0.029 pct.

[chairman2] 12/12/2007 18:06

Anyone know what the company holds
in property investments in the portfolios?

[chairman2] 26/11/2007 11:57

Hector need to pick a down day to buy
ultimately liquidity will reduce so exit
may not always be as easy. Me I'm here
for the divi (special)

PS Spob

nice headers!

[hectorp] 26/11/2007 11:31

The large spread on this share is manipulated gleefully each day by the MMs as far as I can tell.. which makes it very hard to get a step on the ladder, either the spread is huge or they squidge the bid and offer up and so on.
MAybe this is partly responsible for the recent volatility. The company seems to need more market makers to reduce the spread.

[hectorp] 26/11/2007 11:31

The large spread on this share is manipulated gleefully each day by the MMs as far as I can tell.. which makes it very hard to get a step on the ladder, either the spread is huge or they squidge the bid and offer up and so on.
MAybe this is partly responsible for the recent volatility. The company seems to need more market makers to reduce the spread.

[ianbrewster] 26/11/2007 10:47

Yup - works fine

[chairman2] 26/11/2007 10:45

Can anyone use Richard's digit saver?

[spob] 24/11/2007 08:15

I've added a shortcut - just for you Richard.

Just click the link right at the top of the header and voila - no more scrolling :)

[spob] 24/11/2007 07:37

Do you have an arthritic index finger ?

It must be agony, all that scrolling.


Anyway, good luck with Chesnara.