US investment hurts Jardine Lloyd Thompson in first half

Jardine Lloyd Thompson Group announced interim results for the six months to 30 June on Tuesday, claiming a “good” underlying financial performance reflecting “continued momentum” in the business.

The FTSE 250 firm posted revenue growth of 5% to £619.4m and group organic revenue growth of 1%, or 4% excluding UK employee benefits

Reported profit before tax was down 46% to £55.2m, however, which JLT’s board said reflected investment in the US and exceptional costs.

Net investment in JLT USA in the six month period was £17.2m, up from £12.6m.

Underlying profit before tax was down 7% at £89.2m, down 7%, while it dropped 2% to £106.4m when the effect of the US investment is removed.

JLT said it received a positive impact in foreign exchange movements, and confirmed its underlying profit margin was down 140 basis points to 15.9%

Underlying profit margin, excluding the US investment, was 330 basis points higher at 19.2%.

Reported diluted EPS of 15.1p

JLT’s interim cash dividend was declared at 11.6p, up 4.5%.

“During the first half of this year we have been encouraged by the level of client wins, which have been as strong as at any time since I became CEO,” said group chief executive Dominic Burke.

“We are seeing significant financial benefit from collaboration between our specialty operations around the world, which is helping sustain momentum and drive organic revenue growth across the business.

“Economic and industry conditions remain challenging; nevertheless we remain confident about the group's ability to deliver year-on-year financial progress,” Burke added.