Healthy profits as Standard looks to make £100m savings
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Standard Life: Healthcare profits up by a third
Standard Life last week refused to quash speculation that it is considering selling off its healthcare business as it rep orted a big rise in profits for 2009.
The company is understood to have appointed Fenchurch Advisory Partners to consider the options for its healthcare arm which is thought to be worth around £200m.
During a conference call following the group’s results last week, chief executive David Nish said: “In terms of the healthcare business, I am not going to comment on any particular rumours. We are very focused on growing and investing in our business.”
On an international financial reporting standards basis, underlying profit in Standard’s healthcare business leapt by 36 per cent from £11m in 2008 to £15m in 2009. UK life and pension underlying profit on an IFRS basis fell by 8 per cent to £184m from £201m. Overall profits on a European embedded value basis were £474m compared with a £158m loss the previous year.
Standard’s full-year dividend increased by 4 per cent to 12.24p. It has set out plans to make £100m of efficiency savings by 2012 and does not rule out job cuts.
During the conference call, Standard Life Investments chief executive Keith Skeoch predicted that the FTSE would break through the 6,000 mark this year. He said: “There is a weak recovery in the UK but the bulk of FTSE earnings are from abroad and there are a lot of strong cashflows outside of the banking sector so I think the FTSE will continue to make progress and break through 6,000 by the end of the year.”
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