Results round-up: Bunzl, Hiscox, Ascential, Keller Group, Senior

Distribution and outsourcing company Bunzl received a boost from the post-Brexit vote slump in the pound as full year pre-tax profits jumped 12% to £362.9m.

More than 85% of the group's revenues are generated outside the UK and the weak pound had a “significant positive translation impact on the Group's reported results, increasing revenue, profits and earnings by approximately 10%”. Bunzl said.

Operating profits rose by 12% to £409.7m, while revenues jumped 14% on a reported basis to £7.4bn.

The full year dividend was increased for the 24th year in a row, up 11% to 42p.

“Against the backdrop of mixed macroeconomic and market conditions, the combination of our strong competitive position, diversified and resilient businesses and ability to consolidate our fragmented markets further is expected to lead to continued growth,” the company said.

“If exchange rates remain at their current levels, the significant weakening of sterling last year will have a further positive translation effect on the reported results in 2017, particularly in the first half.”

Bunzl also announced that it had bought Singapore-based LSH for an undisclosed sum.

Hiscox

Hiscox posted a surge in full-year pre-tax profit as gross written premiums grew and the Lloyd's of London underwriter benefited from favourable currency moves.

For the year to the end of December, pre-tax profit increased 64% to a record £354.4m, as gross written premiums rose 23.6% to £2.4bn and net premiums came in at £1.7bn from £1.4bn the year before

Investment return was 1.9% versus 1.0% the year before and the combined ratio totalled 84.4% compared to 85% in 2015. A ratio below 100% signals the company is making an underwriting profit, while a ratio above means it is paying out more in claims than it is receiving in premiums.

The company said it saw foreign exchange gains of £152.4m, up significantly from £15.2m in 2015

Hiscox declared a final dividend of 19p per share, taking the total payout to 27.5p for the year, up 15%.

Chief executive Bronek Masojada said: "This is a good result, flattered by foreign exchange and boosted by a strong investment return. Our retail business has come of age, driving growth and profitability for the group.

"This gives us options and, although there are uncertainties in both the insurance and political environments, we have the right people, footprint and financial power to adapt. We will remain focused and disciplined where margins are shrinking and invest where we see opportunities for long-term profitable growth."

Also on Monday, Hiscox said it is in discussions with regulators in two European Union countries about setting up a new insurance base so it can continue to do business in Europe after the UK leaves the EU.

Ascential

Ascential posted a solid first set of annual results as a listed company, with the events organiser confirming a chunky dividend after growing underlying profits by almost a third but remaining in the red due to its publishing legacy business.

As it looks to sell off its 'heritage' Emap publishing brands, the FTSE 250 company's continuing business generated £299.6m of revenue, a 17% gain on the prior year thanks to the weak pound, or almost 10% at constant currencies.

Earnings before interest, tax, depreciation and amortisation of £95.9m grew 32% or 11.5% at constant currencies, with adjusted pro forma earnings per share of 15.5p, up 47.6%.

Including discontinued businesses revenues were up +5.6% and EBITDA 6.5% and the group made a loss before tax from continuing operations of £1.8m, which was down from £43.6m the year before.

With free cash flow after tax and capex of £90.9m and net debt cut to £233.7m from £382.3m, the board recommended a final dividend of 3.2p, bringing the total dividend to 4.7p for the year.

As well as the discontinuation of the legacy publishing brands, chief executive Duncan Painter has looked to "reshape" the group towards higher organic growth with the acquisition of One Click Retail to strengthen the e-commerce analytics offering across the fashion and consumer product industries in August.

The acquisition of MediaLink, which was announced after the year end, sees the addition of a long-time Cannes Lions' partner that Painter said "reinforces our digital advisory expertise to sectors not limited to the branded communication industry".

Keller Group

Geotechnical contractor Keller Group posted its results for the year to 31 December on Monday, reporting record revenue of £1.78bn, up from £1.56bn, which the board said was mainly due to currency movements and strong growth in Europe, the Middle East and Africa.

The FTSE 250 firm said underlying profit before tax was down 11% due to an £18m loss in the Asia-Pacific division, largely as a result of continuing very difficult market conditions in Australia and Singapore.

It said significant restructuring was undertaken, and the APAC cost base was reduced by an annualised £12m.

The board reported a strong margin in North America alongside the “excellent growth” in EMEA, with an exceptional restructuring charge of £14.3m offset by exceptional credit due to Avonmouth insurance proceeds received and a valuation uplift.

Statutory operating profit was up 32% to £85.2m, while net debt increased to £306m from £183m, which Keller said was in large part due to currency differences and the £62m purchase of the Avonmouth property.

The firm was continuing to make “good progress” against the Group's medium term strategic objectives, the board claimed, with the year-end order book at all-time high, 20% above last year, including some “major” contract wins in the second half of 2016.

Total dividends per share were 28.5p for the year, up from 27.1p, an increase of 5%.

Senior

Senior posted its results for the 2016 calendar year on Monday, with revenue rising 8% to £917m, although at constant currencies the change was a 2% decrease.

The FTSE 250 company’s operating profit was £65.8m for the 12 months, a 9% decrease, or 21% at constant currencies, while adjusted operating profit was down 21% at £85.6m, or down 28% at constant exchange rates.

Profit before tax reduced 13% to £55.5m, and adjusted profit before tax fell 24% to £75.3m, but those two falls were 25% and 31% respectively at constant currencies.

Senior’s basic earnings per share fell 6% to 10.84p, while adjusted earnings per share were off 24% at 14.37p. Total dividends paid and proposed still rose 6% to 6.57p, the board declared.

Free cash flow during the year was off 6% to £48.5m, while net debt increased £3.5m to £198.1m during the period.

“2016 was a challenging year with revenue growth in Aerospace offset by market-led reductions in Flexonics,” said chief executive David Squires.

“Despite these challenges Senior delivered strong free cash flow of £48.5m.