CARDIFF (dpa-AFX) - Shares of Admiral Group Plc (ADM.L) rose more than 10 percent on Wednesday morning, after the British motor insurance company reported a higher profit for full year 2011, benefited by growth in revenues. The company said it enters 2012 with confidence and expects to grow profitably.
Henry Engelhardt, chief executive officer of the company said, 'For the eighth consecutive year Admiral Group has reported record profits and record turnover. We have now exceeded £2.1 billion turnover, within 19 years of a standing start, which is a fantastic achievement.'
The company's core UK Car Insurance business, which accounted for 90 percent of Group turnover, continued to grow market share over the year, closing with 2.97 million vehicles insured. Its International Car Insurance operations insured a total of 306,000 vehicles at year-end, an increase of 88 percent over the end of 2010.
For the full year, the company's pre-tax profit increased to 299.1 million pounds from 265.5 million pounds in the previous year. On a per share basis, earnings were 81.7 pence, higher than 72.2 pence per share in the prior year.
Net revenues for the year grew to 870.3 million pounds from 640.8 million pounds in the preceding year. Net insurance premium revenues were 445.8 million pounds, up from 288.1 million pounds a year ago. The company's turnover was 2.19 billion pounds, up 38 percent from the previous year.
In addition, the directors have proposed a final dividend of 36.5 pence per share, to shareholders of record on May 4, 2012, payable on June 1. The final dividend consists of a 17.4 pence normal element and a further special element of 19.1 pence. Total dividends for the year amount to 75.6 pence per share, 11 percent higher than last year.
ADM.L is currently trading at 1,148 pence, up 108 pence or 10.38 percent, on a volume of 1.9 million shares, against a three-month average volume of 688 thousand shares.
Copyright RTT News/dpa-AFX
© 2012 AFX News
