Chesnara year ended December 2015 profits bolstered by Dutch deal

 
Hayley Kirton
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The Dutch purchase added £16.6m to Chesnara's bottom line (Source: Getty)

Chesnara today announced a boost to its profits for its year ended December 2015, thanks partly to its recent acquisition of a Dutch closed book insurance company.

Chesnara, which specialises in takeovers in the pensions and insurance sector, revealed that its profits before tax had increased to £42.8m, up from £28.8m the year before.

The company completed its purchase of Netherlands-based Waard Group in May 2015, which bumped its profits up by £16.6m.

"The acquisition of the Waard Group has generated significant cash and, of equal importance, our entry to the Dutch market has enhanced the outlook for our ongoing acquisition strategy," said said John Deane, chief executive of Chesnara.

Chesnara also revealed that its gross cash generation had increased to £44.2m, up from £42.6m the year before, which was driven by strong performance in its UK business.

Additionally, the company recommended a final dividend of 12.33 pence per share, bringing its total dividend for the year to 18.94 pence per share, which is a 2.9 per cent increase on 2014's 18.4 pence per share and the 11th time in a row the company has raised its total dividend.

Peter Mason, chairman of Chesnara, wrote in his statement: "2015 has been a busy and successful year for Chesnara. The UK business has generated cash in line with expectations and at a level sufficient to support Chesnara's dividend by itself."

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