Record share dividend for Admiral
Admiral, the insurance firm, yesterday revealed pre-tax profits of £100.3m for the first half of 2008, a 16 per cent rise from the same time last year.
The group announced a record dividend of 26p per share, a 26 per cent increase. In addition, over £3m in shares will be distributed to staff who have been with Admiral from 1 January through to 30 June 2008.
The figures were broadly in line with analyst expectations and the news provided a huge boost for Admiral’s shares, which closed up 10.8 per cent at 914p. Admiral chief operating officer David Stevens attributed the company’s success to, “rises in market premiums and a relatively benign claims experience over the last 18 months.”
There had been concerns that the current economic downturn would impact upon ancillary spending, but these proved unfounded as profits from these products and services rose 21 per cent from 2007.
There were further positives, with £15m in turnover coming from business outside the UK and chief executive Henry Engelhardt confirmed: “We now have 60,000 customers in Spain, more than 10,000 in Germany and saw the on-time, under-budget launch of our Italian operation at the end of May.”
Confused.com, the price comparison website owned by Admiral, provided mixed news with sales up 7 per cent to £36.6m, while profits fell by 21 per cent as the business spent heavily on marketing to help defend its market position.