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Ocean Finance Loans:
Market Cap
£5.33m
Change Today
0.000p ()
Share Price
4.75p
Interim Results
Gable Holdings Inc
25 September 2007
25 September 2007
GABLE HOLDINGS INC
("Gable" or "the Company" or "the Group")
Unaudited Interim Results for the six months ended 30 June 2007
Gable Holdings Inc (AIM: GAH), the European insurance company to the building
and construction sector, announces its unaudited interim results for the six
months ended 30 June 2007.
Summary of the Period
• Gross written premium of £4.0 million produces an earned premium of £3.3
million and net profit before tax of £0.4 million. On a pro forma basis, as
explained below, the net profit would be £1.1 million
• New more cost effective reinsurance programme in place from 1st July 2007
• GIAG's solvency position remains very strong and exceeds the requirement for
its current and currently anticipated growth strategies
Comment and Outlook
William Dewsall, Chief Executive, Gable Holdings Inc, said:
"The Board is pleased with the progress the Company has made over the last six
months, particularly against the backdrop of a UK market which has continued to
be challenging. Our renewal book is solid, giving us a strong start to the
year."
Enquiries:
William Dewsall, Chief Executive
Gable Holdings Inc tel: +44(0)20 7337 7460
John Bick, Hansard Group tel: +44(0)20 7250 1100
Gable Holdings Inc.
Unaudited Interim results for the six months ended 30 June 2007
The Board of Gable Holdings Inc. ("Gable") is pleased to present its unaudited
results for the six months ended 30 June 2007.
Results
The results for the six months ended 30 June 2007 show gross written premium of
£4.0 million. The results below show both the reported result and also an
unaudited pro forma result prepared on the basis set out below, which the Board
believes provides a more representative basis of presentation for the six month
period:
Six months ended 30 June 2007 £000s £000s
Actual - reported Pro forma
Earned premium 3,342 3,342
Reinsurance (note 1) (1,212) (682)
Acquisition costs (836) (836)
Claims (note 2) (767) (690)
Other direct costs (81) (81)
Net insurance result 446 1,053
Notes
1. The pro forma reinsurance has been calculated based on the new programme
(in place from 1 July 2007), as it will apply to all premium written from 1 July
2007.
2. The claims provision for the six months has been provided at a level
consistent with the actuarial evaluation undertaken earlier this year in respect
of the 2006 underwriting year. The Board believes that this remains an overly
prudent approach and the pro forma therefore shows a reduction of 10% in the
claims provided.
GIAG's solvency position remains very strong and exceeds the requirement for our
current and currently anticipated growth strategies. The reported result for the
six month period shows a profit of £0.4 million (2006: loss of £0.1 million).
At the end of the period net assets were £8.9 million (2006: £8.9 million).
Cash balances at the end of the period were £1.3 million, of which £0.3 million
was held by third parties on the Group's behalf as a result of premium
collection, and in addition financial assets held in respect of insurance
capital in Liechtenstein were £3.6 million.
Gable's internet based quotation system continues to provide one of the lowest
fixed cost bases in the industry and provides a scalable platform as the
business grows. With the company moving into other markets the system has the
ability to move with it providing the same efficiencies.
During the period GIAG purchased its new reinsurance programme, commencing 1
July 2007, which is considerably more cost effective than its previous programme
and is also led by an AA rated underwriter. The benefits of this new programme
will be seen incrementally over the coming 12 months.
The Board was pleased with the level of contract renewals during the period
giving the business a strong foundation for the year moving forward. GIAG has
also continued to see a growing level of business from its network of brokers in
the UK.
Board
On 20 September the Company announced the appointment of Lance Ranger as a
Non-Executive Director. Lance is an international trust lawyer based in
Switzerland and specialises in international law and tax planning where he has
over 20 years experience advising a range of international clients. We welcome
Lance to the Company. The Board would also like to thank Joanna Barrett, who
stepped down from the Board as Non-Executive Director at the Company's last AGM
in order to pursue other business commitments. Our thanks to Joanna for her
contribution since the Company floated on AIM in 2005.
Outlook
The Board is pleased with the progress the Company has made over the last six
months, particularly against the backdrop of a UK market which has continued to
be challenging. Our renewal book is solid, giving us a strong start to the year.
Despite competitive market conditions we remain committed to writing only
profitable business in line with the Company's strategy to continue to deliver
shareholder value as the company grows. We can look forward to introducing new
products and entering new markets in Europe later in the year and into 2008 and
the Board remains confident that it is well placed to meet its expectations for
the year ended 31 December 2007.
William Dewsall
Chief Executive
24 September 2006
GABLE HOLDINGS INC.
Consolidated Income Statement
For the six months ended 30 June 2007
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2007 2006 2006
Notes £000s £000s £000s
unaudited unaudited audited
Gross written premiums 3,971 4,131 6,214
Change in provision for gross unearned premiums 5 (629) (3,213) (2,626)
Gross earned premiums 3,342 918 3,588
Outward reinsurance premiums (1,415) (480) (2,195)
Change in provision for unearned
premiums - reinsurers' share 5 203 373 920
Net earned premiums 2,130 811 2,313
Net investment return 72 44 69
Total revenue from operations 2,202 855 2,382
Gross claims paid 5 (105) - (29)
Movement in gross technical provisions 5 (662) (115) (988)
Gross claims incurred (767) (115) (1,017)
Reinsurers' share of gross claims paid - - -
Movement in reinsurers' share of technical
provisions - - -
Reinsurers share of claims incurred - - -
Net claims incurred (767) (115) (1,017)
Expenses incurred in insurance activities (836) (330) (908)
Other operating expenses (174) (453) (699)
Total operating charges (1,010) (783) (1,607)
Profit from operations and before taxation 425 (43) (242)
Taxation (30) (3) (10)
Profit for the period attributable
to equity holders of the Company 6 395 (46) (252)
Earnings per share 4 0.35p (0.04)p (0.23)p
All operations are continuing.
GABLE HOLDINGS INC.
Consolidated Balance Sheet
At 30 June 2007
30 June 30 June 31 December
2007 2006 2006
Notes £000s £000s £000s
unaudited unaudited audited
Assets
Intangible assets 4,250 4,250 4,250
Tangible fixed assets 212 338 242
Reinsurers' share of technical provisions - - -
Deferred acquisition and reinsurance costs 5 1,874 1,176 1,606
Prepayments and accrued income 594 939 806
Trade and other receivables 2,801 2,920 959
Financial assets 3,628 3,930 3,703
Cash and cash equivalents 8 1,302 106 968
Total assets 14,661 13,659 12,534
Equity
Share capital 281 279 281
Share premium account 5,406 5,308 5,406
Share based premium reserve 20 20 20
Other reserves 3,875 3,875 3,875
Retained earnings (699) (622) (1,021)
Total equity attributable to equity holders and
total equity 6 8,883 8,860 8,561
Liabilities
Technical provisions 5 4,905 3,328 3,614
Accruals and deferred income - 190 34
Trade and other payables 873 1,281 325
Total liabilities 5,778 4,799 3,973
Total liabilities and shareholders' funds 14,661 13,659 12,534
Net asset value per ordinary share 4 7.92p 7.95p 7.63p
GABLE HOLDINGS INC.
Consolidated Cash Flow Statement
For the six months ended 30 June 2007
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2007 2006 2006
Notes £000s £000s £000s
unaudited unaudited audited
Cash flows from operating activities
Cash generated from operations 7 290 (569) (97)
Interest received 44 47 37
Net cash flows from operating activities 334 (522) (60)
Cash flows from investing activities
Purchases of financial assets - (3,930) (3,703)
Purchase of tangible fixed assets - (300) (227)
Net cash flows from investing activities - (4,230) (75)
Cash flows from financing activities
Shares issued - - 100
Share issue costs - - -
Net cash flows from financing activities - - 100
Net increase/(decrease) in cash and cash
equivalents 8 334 (4,752) (3,890)
Cash and cash equivalents at period beginning 968 4,858 4,858
Cash and cash equivalents at period end 8 1,302 106 968
GABLE HOLDINGS INC.
Notes to the Interim Consolidated Financial Statements
For the six months ended 30 June 2007
1. Basis of preparation
The Company was incorporated as a Corporation in the Cayman Islands which does
not prescribe the adoption of any particular accounting framework. For the year
ended 31 December 2006, Gable adopted International Financial Reporting
Standards ("IFRS") in its Group financial statements for the first time. These
interim financial statements have been prepared under the historical cost
convention and in accordance with the requirements of International Reporting
Standards, in so far as they apply to interim statements.
The Group financial statements consolidate the financial statements of Gable
Holdings Inc. and subsidiary undertakings made up to 30 June 2007.
2. Accounting policies
There have been no changes to the Group's accounting policies as set out in the
Group's financial statements for the year ended 31 December 2006 and, as such,
those accounting policies have been applied to these interim statements.
3. Segmental information
The Group's business is the provision of construction insurance products and it
has, in the six months to 30 June 2007, derived its business from Great Britain
and Ireland.
4. Earnings and net asset value per share
The calculation of earnings per share is based on the net profit of £395,000
(six months ended 30 June 2006: loss £46,000, year ended 31 December 2006 : loss
£252,000) divided by the weighted average number of shares in issue during the
period of 112,200,000 (six months ended 30 June 2006: 111,400,000, year ended 31
December 2006 : 111,700,274).
The net asset value per share is calculated by dividing the shareholders' funds
of £8,883,000 (30 June 2006: £8,860,000, 31 December 2006: £8,561,000) by the
number of shares in issue at the end of the period - 112,200,000 (30 June 2006:
111,400,000, 31 December 2006: 112,200,000).
5. Insurance assets and liabilities
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2007 2006 2006
£000s £000s £000s
unaudited unaudited audited
Deferred acquisition and reinsurance costs
Acquisition costs deferred 751 803 686
Provision for unearned reinsurance premium 1,123 373 920
1,874 1,176 1,606
Technical provisions
Claims reserve 1,650 115 988
Unearned premium 3,255 3,213 2,626
4,905 3,328 3,614
Claims paid 105 - 29
Claims reserved
At 1 January 2007 988 - -
Claims notified and reserved in the period 601 - 290
Incurred but not reported movement in the period 61 115 698
At 30 June 2007 1,650 115 988
Movement for provision in unearned premium
At 1 January 2007 2,626 - -
Movement in provision for the period 629 3,213 2,626
3,255 3,213 2,626
Movement in provision for unearned reinsurance premium
At 1 January 2007 920 - -
Movement in provision for the period 203 373 920
1,123 373 920
6. Reconciliation of movements in shareholders' funds
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2007 2006 2006
£000s £000s £000s
unaudited unaudited audited
Profit for the period 395 (46) (252)
Issue of ordinary share capital - - 100
Currency translation differences (73) - (193)
Net (decrease)/increase in shareholders' funds 322 (46) (345)
Equity shareholders' funds brought forward 8,561 8,906 8,906
Equity shareholders' funds carried forward 8,883 8,860 8,561
7. Reconciliation of profit for the period before taxation to net cash flows
from operating activities
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2007 2006 2006
£000s £000s £000s
unaudited unaudited audited
Profit for the period after taxation 395 (43) (252)
Interest received (44) (47) (69)
Non-cash exchange movements 2 - (193)
Depreciation of tangible fixed assets 30 37 60
Increase of technical provisions 1,291 3,328 3,614
Increase in deferred acquisition and reinsurance costs (268) (1,176) (1,606)
Increase in debtors (1,630) (3,835) (1,709)
Increase in creditors 514 1,167 58
Net cash flows from operating activities 290 (569) (97)
8. Reconciliation of net cash flows to movement in net funds
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2007 2006 2006
£000s £000s £000s
unaudited unaudited audited
Change in cash for the period 334 (4,752) (3,890)
Change in net funds resulting from cash flows 334 (4,752) (3,890)
Net funds brought forward 968 4,858 4,858
Net funds carried forward 1,302 106 968
9. General information
The information for the period ended 30 June 2007 does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. The figures for
the period ended 31 December 2006 have been extracted from the 2006 statutory
financial statements prepared under IFRS. The auditors' report on those
accounts was unqualified and did not contain a statement under section 237(2) of
the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange