Phoenix Holdings Results

[Dod101]

These results are now available on their website. They look good to me and give a 3.5% increase in the dividend. Some will no doubt hold in view of the yield of 6.3%. I hold and am very happy with them, except for the fact that just under 20% of the capital is held by SLA!

Dod

(edited 5/3 to correct company name. Raptor.)

[Raptor]

As there is no link to the results. This is the link for 2018 full year results

Raptor.

[blobby]

Looks excellent and the market seems to like it.

This stood out for me:

The transition of the Standard Life Assurance businesses continues to progress well and today we increase the total cost and capital synergy target by 70% from £720 million to £1.2 billion. Our end state operating model will incorporate the best of both legacy businesses and our management bench strength and strategic options as a combined Group have increased significantly.

[monabri]

These results are now available on their website. They look good to me and give a 3.5% increase in the dividend. Some will no doubt hold in view of the yield of 6.3%. I hold and am very happy with them, except for the fact that just under 20% of the capital is held by SLA!

Dod

Interesting to see that SLA's share price tickled up a little today (and, off topic, bearing in mind what's going on in the Canadian courts, so has BATS).

viewtopic.php?f=94&t=16495

[monabri]

Note - The adjustment in dividend (from 25.1p to 23.4p) reflecting the June 18 Rights Issue.

Moderator Message:
More name corrections. -- MDW1954

[monabri]

A FTSE100 Company from 18th March.

https://www.proactiveinvestors.co.uk/co ... 15547.html

[OZYU]

Note - The adjustment in dividend (from 25.1p to 23.4p) reflecting the June 18 Rights Issue.

Moderator Message:
More name corrections. -- MDW1954

No quite. The adjustment had already taken place in the October payment of 22.6p. (The theoretical value, since the exact adjustment factor, which in being calculated needs to take into account the 20% holding SLA got without forking out hard cash, was 0.8953. Making the theoretical value of the adjusted divi from 25.1p to 22.47p, near enough the 22.6p they decided to pay).

The current 23.4p is thus a true 3.54% divi increase from 22.6p, not related to the rights per se, but a consequence of the increased business volumes and efficiency gains.

Ozyu

I hold, some zombie, very good XIRR and yield. Entry into the FTSE will only help imho. This 'Grumpy old git' can't therefore complain. Can't buy some more as it busts all sensible self imposed portfolio yardsticks already.

[Dod101]

As I understand it we were all slightly diluted with the various corporate actions. I tail swallowed at the time of the rights issue. Anyhow we are now seeing the business begin to settle down, although I think the SLA 20% will be a bit of an overhang because I cannot see SLA wanting to retain that in the long term. Currently it helps to cement the strategic relationship I guess.

I am very happy with the yield and the dividend increase I must say. It goes to show what can be done with a load of second rate life policies in run off!

Dod

[monabri]

Note - The adjustment in dividend (from 25.1p to 23.4p) reflecting the June 18 Rights Issue.

No quite. The adjustment had already taken place in the October payment of 22.6p. (The theoretical value, since the exact adjustment factor, which in being calculated needs to take into account the 20% holding SLA got without forking out hard cash, was 0.8953. Making the theoretical value of the adjusted divi from 25.1p to 22.47p, near enough the 22.6p they decided to pay).

The current 23.4p is thus a true 3.54% divi increase from 22.6p, not related to the rights per se, but a consequence of the increased business volumes and efficiency gains.

Ozyu

The results today say ( about the dividend)

"This corresponds to a final 2018 dividend per share of 23.4p and constitutes a c. 3.5% uplift in dividend per share (rebased to take into account the bonus element of the rights issue completed in July 2018), resulting in a new annualised dividend per share level of 46.8p going forward."

If it was simply down to increased volumes & efficiency gains, I would have been hoping for 25.1p ( as paid on 4th May 18) plus an uplift arising from such "improvements".

I was referring/ remembering the 7 for 15 Rights Issue (at 518p per share) .

[OZYU]

Note - The adjustment in dividend (from 25.1p to 23.4p) reflecting the June 18 Rights Issue.

No quite. The adjustment had already taken place in the October payment of 22.6p. (The theoretical value, since the exact adjustment factor, which in being calculated needs to take into account the 20% holding SLA got without forking out hard cash, was 0.8953. Making the theoretical value of the adjusted divi from 25.1p to 22.47p, near enough the 22.6p they decided to pay).

The current 23.4p is thus a true 3.54% divi increase from 22.6p, not related to the rights per se, but a consequence of the increased business volumes and efficiency gains.

Ozyu

The results today say ( about the dividend)

"This corresponds to a final 2018 dividend per share of 23.4p and constitutes a c. 3.5% uplift in dividend per share (rebased to take into account the bonus element of the rights issue completed in July 2018), resulting in a new annualised dividend per share level of 46.8p going forward."

If it was simply down to increased volumes & efficiency gains, I would have been hoping for 25.1p ( as paid on 4th May 18) plus an uplift arising from such "improvements".

I was referring/ remembering the 7 for 15 Rights Issue (at 518p per share) .

The RNSs are totally in line with what I set out above, the new base had already been established in the October divi., post rights. So I stand by my figures, which come out of my complex model of that holding's finances, as I do for each company I hold, and have done for decades.

Your wishing for "25.1p and some more" would have cost another £24.5+m annually, considering they increased yearly divis from £192m to £338m(as a direct result of mainly a much enlarged business), your wishing, beyond £361m, would have been most unwise for PHNX to fork out to say the least. They tend to be prudent with their divis, and said so in previous RNS, unlike a whole possie of 'stalwarts' paying divis out of 'financial engineering/ cheap(for the time being) debt, thus unsustainable.

Ozyu