Results round-up

Final results from Prudential showed pre-tax profit falling short of expectations but a bumper dividend and reassuring words from chief executive Mike Wells on the outlook in the UK, US and Asia helped lift the shares on Wednesday morning.

Although total revenue fell 31% to £41.3bn due to much lower investment returns offsetting higher gross premiums earnings, operating profits rose 22% to £4.0bn, partly helped by a one-off £339m benefit from slimming down the UK life business to reflect the new Solvency II regulations.

Profit before tax increased 20% to £3.2bn, though this was lower than the consensus estimate of £3.6bn, with earnings per share up 16% to 101p.

Directors brought investors firmly back on side by adding a special dividend on top of a full-year dividend that was only hiked 5% to 38.78p per share - slightly below the consensus. The special dividend of 10p per share was thanks to the one-off management action in the UK business.

Of its three main geographic areas, the UK life business generated the strongest growth in operating profit, up 60% to £1.2bn, though the M&G investment arm endured a 1% decline to £442m.

The Asia life and asset management segment delivered a 17% increase to £1.3bn, with growth from both sides of the business. In the US, Jackson life contributed 10% growth to £1.7bn.

Shares in G4S tumbled on Wednesday after the security firm posted a drop in 2015 pre-tax profit and revenue, mainly on the back of onerous contracts and restructuring costs.

Pre-tax profit fell to £78m from £128m in 2014 as the company took a hit from a £66m impairment charge related to a business in Estonia and a number of businesses held for sale, onerous contract provisions and restructuring costs.

G4S highlighted contract provisions of £65m, restructuring of £44m, losses on businesses being sold or closed of £40m and non-cash charges of £106m relating to the amortisation/impairment of goodwill.

Meanwhile, revenue dropped to £6.86bn from £6.89bn the previous year and the company said it will pay a final dividend of 5.82p per share, unchanged from last year, taking its full dividend for the year up 1.8% to 9.41p.

Chief executive officer Ashley Almanza said: “During 2015 we made substantial progress with the strategic and operational transformation of G4S. Our portfolio management programme combined with our investment in sales, innovation and re-structuring is reflected in the results of our continuing operations where the group's revenues rose by 4% and underlying earnings rose by 14%."