Phoenix Share Discussion Threads

[fenners66] 24/8/2017 20:22

thanks edmundshaw - I was going to go through in more detail later - you have just saved me some time!

[edmundshaw] 24/8/2017 20:16

Having looked in some detail at the results for any hint that there may be negative news that it took a while for institutions to assimilate, I have failed to find anything.

There is a bigger pension contribution than last year, but that is simply a timing difference (it will be reversed therefore in the second half). Various additional synergies have been found, and the negative of lower-than-expected interest rates is more than cancelled by the positives(?) of changed actuarial assumptions showing a slow down of mortality improvements.

There are some nice tidbits, such as the offset of longevity risk in annuities by life assurance (Sun Life), and the advantages from customers with non-GAR pension pots encashing each month (so freeing up cash from capital buffers). The subordination of debt was obviously a useful exercise for onshoring.

All in all, a nicer than expected set of results. I guess today we saw the market voting machine taking precedence over the weighing machine...

[fenners66] 24/8/2017 19:51

About 6.47% and just ticking along, well if it falls back a bit more I may be tempted for some more

[pj fozzie] 24/8/2017 17:49

Well that was disappointing. A nice start to the day, only to lose all the gains as the day progressed. I genuinely don't understand why this share is not more popular - there cannot be many options as low risk as Phoenix delivering a 6% plus dividend stream.

Cheers,
PJ

[essentialinvestor] 24/8/2017 16:14

There were better singers, but she had such a soulful voice, you could feel the pain
when she sang.

[fenners66] 24/8/2017 13:45

perhaps someone who does not know which day of the week it is , should not be responsible for handling investments...

[arf dysg] 24/8/2017 10:24

Perhaps someone should look up the lyrics to a song by Dusty Springfield.

[robsy2] 24/8/2017 09:50

Very encouraging.
R2

[arf dysg] 24/8/2017 09:45

hiddendepths (2366) "Impressive! [...] these figures were released on a Friday"

Someone should write a song about that: "Only twenty-four hours to Friday... Only one day away from results; I hate to do this to you, but I've bought something new" ? Ought to be a massive hit. Sounds familiar somehow...

[jonwig] 24/8/2017 09:04

hiddendepths - I doubt any mid- long-term holders here have been confused, though one chartist posted here a few months back and insisted that the chart was the chart and should not be adjusted.

[hiddendepths] 24/8/2017 08:55

The bonus element of rights issues makes a mockery of most charts!

The unadjusted dividend data also makes it look as if there was a dividend cut but that too is effectively an illusion as the company tried to explain!

Easy to see sentiment being affected by simplistic analyses in cases like this!

[edmundshaw] 24/8/2017 08:23

For those who bought in before the Rights Issue, a current price of 785p is equivalent to a pre-rights price of 946.6p.

That would be progress for just about everybody...

[hiddendepths] 24/8/2017 08:21

Lord Gnome - doh!

[lauders] 24/8/2017 08:05

Positive reaction to good results so far. Happy I chose this as my income play after taking a long time to decide.

[my retirement fund] 24/8/2017 07:57

Sir Clive now ....

[my retirement fund] 24/8/2017 07:55

Clive cowdry a genius

[my retirement fund] 24/8/2017 07:54

Very happy

[lord gnome] 24/8/2017 07:50

hiddendepths - It's Thursday!

[jonwig] 24/8/2017 07:44

So they're virtually paying the same dividend as before the rights issue, on enlarged capital. And in the market for future acquisitions - maybe!

[danieldruff2] 24/8/2017 07:42

By the time I buy some Phoenix, she'll be rising...

[hvs] 24/8/2017 07:40

Especially with accerating cash generation.

[hiddendepths] 24/8/2017 07:40

Impressive! A rerating looks to be in order. The only issue I have is that these figures were released on a Friday in August just ahead of the Bank Holiday. Maybe the City won't notice until September!

[garycook] 24/8/2017 07:30

Much better than expected Interims,with great cash flow,and a 50.20p Full year dividend yielding 6.5%.This should be good going forward for the share price

[rcturner2] 24/8/2017 07:30

Very happy with those results.

[skinny] 24/8/2017 07:15

PHOENIX GROUP DELIVERS STRONG CASH GENERATION AND IS AHEAD OF PLAN ON REALISING ACQUISITION BENEFITS
Phoenix Group, the UK's largest specialist closed life fund consolidator1, today announces its results for the six months ended 30 June 2017.

FINANCIAL HIGHLIGHTS
- £360 million of cash generation2 in H1 2017 (H1 2016: £147 million)

- Total holding company cash of £691 million2 as at 30 June 2017 (£570 million as at 31 December 2016)

- The Group remains on track to achieve its cash generation target of £1.0 billion - £1.2 billion between 2017 and 2018 and its longer term cash generation target of £2.8 billion between 2016 - 20202

- Solvency II surplus as calculated at Phoenix Group Holdings of £1.7 billion3 as at 30 June 2017 (£1.1 billion as at 31 December 2016)

- Shareholder Capital Coverage Ratio as calculated at Phoenix Group Holdings of 166% as at 30 June 20174 (139% as at 31 December 2016)

- Group operating profit of £215 million in H1 2017 (H1 2016: £107 million)

- Interim dividend of 25.1p per share, a 5% increase on the 2016 final dividend

INTEGRATION OF ACQUISITIONS AHEAD OF EXPECTATIONS
- AXA acquisition has generated a total of £282 million of cash to date, of which £165 million was generated in 2017, exceeding the target of £250 million of cash generation within 6 months of completion

- AXA cost synergies now expected to be between £13 million to £15 million per annum, increased from original expectations of £10 million of cost savings per annum

- Customer governance model in place to provide oversight of Abbey Life business

- On track to achieve cost synergies of £7 million from Abbey Life acquisition

ONSHORING PROCESS SUPPORTED BY RECENT SUBORDINATED DEBT ISSUANCE
- Issuance of US$500 million of Tier 2 subordinated debt and £450 million of Tier 3 subordinated debt in 2017, used to refinance the Group's senior debt

- Credit rating upgrade from Fitch Ratings achieved in July 2017

- Progress towards putting in place a new UK-registered holding company for the Group in mid 2018

COMMENTING ON THE RESULTS, GROUP CEO, CLIVE BANNISTER SAID:
"The Group continues to deliver strong cash generation and remains on track to achieve its targets, supported by capital and cost synergies from the AXA and Abbey Life acquisitions.

The plans to bring Phoenix onshore are progressing well and have been supported by the issuance of over £800 million of subordinated debt during 2017. Our strengthened capital position and the recent upgrade from Fitch Ratings gives us the financial flexibility to execute additional acquisitions in future."