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Partnership half-year profits hit by £28m IPO costs

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Partnership chief executive Steve Groves

Partnership saw its pre-tax IFRS profits drop more than 50 per cent in the six months to 30 June 2013, from £17.4m in the same period last year to £8.6m this year, primarily due to costs associated with its IPO.

In May, the enhanced annuity specialist confirmed it planned to float on the London Stock Exchange.The IPO was completed in June.

Partnership’s half yearly report, published last week, reveals a substantial dip in profits as the firm absorbed costs linked to the IPO of £28m.

Total operating profit, which does not include costs related to the IPO, increased 31 per cent year-on-year from £45m to £59m.

While Partnership’s new business premiums for retirement annuities were up 16 per cent during the period, from £518m to £601m, they were down 38 per cent in the care market from £45m to £28m.

Partnership chief executive Steve Groves says implementation of the RDR and gender-neutral pricing for annuities caused “disruption” in the market at the start of 2013.

He also says “confusion” over Government plans to cap long-term care costs hit sales of immediate needs annuities.

Informed Choice managing director Martin Bamford says: “Partnership consistently offer the best enhanced annuity rates and it looks well positioned to build a dominant position in that market.”

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