Results round-up

Payments processor Worldpay – which floated on the London Stock Exchange last year – reported a rise in first-half underlying earnings and pre-tax profit amid strength in all its businesses, as it declared a maiden interim dividend of 0.65p per share.

For the six months to the end of June, pre-tax profit rose to £168.6m from £0.3m in the first half of 2015 as revenue jumped 10% to £2.14bn.

Net revenue was up 16% to £539.7m thanks to the expansion of business with existing customers, the roll-out of enhanced capabilities and innovation, and new customer wins. Meanwhile, underlying earnings before interest, tax, depreciation and amortisation were 19% higher at £217.9m.

Worldpay UK net revenue grew 12% and the group said it continues to increase customer numbers and product penetration through cross selling. It also benefited from the overall positive effect on product propositions and pricing following the reduction in interchange costs.

Chief executive officer Philip Jansen said: “We delivered a strong first half performance, further enhancing our product propositions, and deepening our capabilities and presence, both by geography and across our divisions and verticals. We are well positioned to deliver a good performance in the second half of the year, and our medium-term guidance remains unchanged."

Legal & General increased first-half profits by almost a quarter as strong growth from the annuity arm offset declines at investment management and insurance.

Adjusted group operating profit in the half-year to 30 June increased 10% on the same period last year to £822m, with earnings per share up 24% to 11.27p or up 14% to 11.20p if adjusted to exclude the £4m profit in relation to the disposal of Suffolk Life.

Net cash generation swelled 16% to £727m and the group delivered a 20% return on equity.

With the new progressive dividend policy adopted in March 2016, why board has decided to pay a 30% of the annual payment at the half-year stage, meaning this term's interim payout was calculated to be 4p per share - implying a full year payout of 13.3p.

From a balance sheet perspective, L&G's Solvency II surplus at the half year was estimated at £5.3bn, representing a coverage ratio of 158%, with eligible own funds of £14.3bn and the solvency capital requirement of £9.0bn.

Chief executive Nigel Wilson said L&G was continuing to execute its strategy well and that the strong balance sheet offers flexibility and capacity to invest in support of each of our businesses.