Thursday, 5 September 2013

Abbey Protection - Interim Results

Abbey is a small AIM listed company and is the leading supplier of specialist legal and professional fees insurance to small and medium UK companies. One of their divisions supplies specialist policies to cover the cost of professional fees involved in tax investigations.

Abbey is the smallest holding in my portfolio with a market cap of around £115m, it is conservatively managed and has net cash on the balance sheet. Since my first post on Abbey in March, it is now possible to hold AIM-listed shares in an ISA so as I intend holding this for the longer term, I will probably look to move it over from my trading a/c at some stage.

Abbey have recently issued their half year results to end June 2013 ( link via Abbey website).

Profits after tax are up 7.7% at £4.2m (£3.9m last year) and the company are lifting the interim dividend 14% to 2.4p (2.1p 2012). If the final is increased by a similar percentage, the total for the full year will be 5.6p giving a forward yield of 4.8%. Last year Abbey paid out £5m to shareholders by way of a 5p per share special dividend - as a result, net shareholder funds have reduced by £2m to £28.4m.

The share price has had a good run this past year - up around 30% compared to a rise of around 13% for the AIM 100 index - there is little movement following the results and I would guess the current price is just about up with events for the time being at 115p.

12m chart Abbey v AIM 100
(click to enlarge)

Commenting on the results, CEO Colin Davison concluded:
"We remain cautious for the remainder of 2013, with the opportunities afforded by the potential development of our legal and tax services products off-setting the expected headwinds in the restructuring of certain divisions, the reduction in ATE revenues and Ibex results. 
Overall, we look to the future with optimism, in the knowledge that our core insurance and services business remains secure and supported by an excellent team of dedicated professionals". 

As ever please DYOR

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