Source - SMW
Hansard Global reports an IFRS profit after tax for the year to the end of June of £8.3m - down from £14.9m last time.  

Excluding one-off items, underlying IFRS profit was £9.2m compared with £12m in FY 2015. 

The main driver of this reduction is a reduction in fee and commission income from £56.3m in FY 2015 to £51.3m in FY 2016. 

The primary contributors to this were reduced income levels as a result of Hansard Europe being closed to new business, reductions in contract-holder activity margins and refinements made to the deferred income reserve.

During the year, the Group's two life insurance subsidiaries adopted the new UK and Ireland reporting standard, FRS 101 'Reduced Disclosure Framework'.  

This standard allows qualifying entities to adopt the recognition and measurement requirements of EU-adopted IFRS with certain amendments.  As part of preparing for this adoption, the group took the opportunity to review and enhance the calculation models for deferred income and deferred origination costs. 

As a result, a number of refinements have been made to the consolidated Group's deferred income and cost balances which have the net effect of reducing the amount of income and consolidated profit earned in FY 2016 by £0.8m.  

This is a one-off adjustment where the income will instead be earned in future years. Excluding the £3m exceptional write back of a provision in FY 2015, administrative expenses were managed to a level slightly below FY 2015 despite the substantially increased new business levels.

The group European Embedded Value (EEV) of £196m has increased marginally from £195m last year, after dividends paid to shareholders during the year of £12.2m.

An EEV operating loss of £1.1m was incurred (FY 2015: loss of £6.3m) as a return to a positive New Business Contribution of £0.2m was offset by negative experience variances.  

Positive investment return variances driven primarily by the weakening of sterling resulted in an EEV profit of £13.1m for the year (FY 2015: £2.9m).     At 9:29am: (LON:HSD) Hansard Global PLC share price was -17.5p at 122.5p

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