Arbuthnot Banking Group today announces an increase in profit before tax of 172%.
Arbuthnot Banking Group PLC is the holding company for Arbuthnot Latham & Co., Limited and has a 15.5% shareholding in Secure Trust Bank PLC.
FINANCIAL HIGHLIGHTS
- Profit Before Tax £6.8m (2017: £2.5m)
- Underlying profit before tax £7.4m (2017: £3.2m)
- Operating income increased by 24% to £67.9m (2017: £54.6m)
- Negative earnings per share 134.5p (2017: positive 43.9p)*
- Continuing earnings per share 38.0p (2017: 14.0p)
- Underlying earnings per share 40.3p (2017: 17.6p)
- Final dividend per share 20p (2017: 19p), an increase of 5%
- Total full year dividend per share 35p (2017: 33p)
- Bonus share issue to create new class of non-voting shares
- Net assets £196m (2017: £236m)
- Net assets per share 1283p (2017: 1547p)
- Underlying return on deployed equity 5.6% (2017: 4.2%)
OPERATIONAL HIGHLIGHTS
Arbuthnot Latham
- Profit before tax £14.6m (2017: £11m) an increase of 33%**
- Average net margin at 4.7% (2017: 4.5%)
- Customer loans increased 17% to £1,225m (2017: £1,049m)
- Written loan volume increased 1% to £469m (2017: £466m)
- Customer deposits increased 23% to £1,714m (2017: £1,391m)
- Assets under management decreased 6% to £985m (2017: £1,044m)
- Arbuthnot Asset Based Lending launched in May 2018 issuing facilities of £43m
- Arbuthnot Specialist Finance developed with first loan approved in 2019
- Arbuthnot Direct established to provide deposit products direct to the retail market
Secure Trust Bank – Investment
- Shareholding now at 15.5% (2017: 18.6%)
- De-recognised as an associated undertaking due to loss of significant influence
- Net loss following de-recognition £25.7m
Commenting on the results, Sir Henry Angest, Chairman and Chief Executive of Arbuthnot, said: “The Group has had another good year with further deployment of capital. Diversity of earnings increased with good progress being made by the Commercial Bank, along with the launch of our new ventures, Asset Based Lending, Arbuthnot Direct and Specialist Finance. These new businesses should give the Group a strong basis from which to develop in the future.”
Note:
* Results include £25.7m net loss on derecognition of STB associate recorded in discontinued operations.
** Includes an adjustment to RAF earn out liability giving a one off profit of £2.6m.
arbuthnot-2