Source - RNS
RNS Number : 2761L
Helios Underwriting Plc
30 September 2016
 

 

 

Helios Underwriting plc

("Helios Underwriting" or the "Company")

Interim results for the six months ended 30 June 2016

 

Helios Underwriting plc, which provides investors with a limited liability direct investment into the Lloyd's insurance market, announces its unaudited results for the six months ended 30 June 2016.

 

The Board is pleased to announce the results for the six months to 30th June 2016.  The highlights are as follows:

   The operating profits have increased to £605,000 (30 June 2015 -  £73,000)

   Contributions from the older underwriting years have benefitted from the weakening of sterling immediately before the half year end, from the additional capacity acquired on the "off risk" underwriting where Helios retains 100% of the benefit    The loss activity continues to be muted and the loss from the 2016 underwriting year of £188,000 for the first half is as expected as expenses are incurred before the underlying profits from the underwriting are recognized.  

   Operating and reinsurance costs are in line with expectations and we continue to benefit from the fees and profit commissions payable by the quota share reinsurers

   Earnings per share have increased to 6.38p per share 2015 (30 June 2015 - 2.89p)

   The Adjusted Net Asset Value per share (Humphrey's Valuation) has increased to £2.00 per share (30 June 2015 - £1.83 per share)

 

A fund raising up to approximately £5 million (net) by way of a placing of new ordinary shares in the Company is also being announced separately, together with a proposed open offer of new ordinary shares to shareholders to raise up to a further £3.2 million.

 

 

 

During the first half of 2016 we continued to build the portfolio of capacity through the acquisition of two further Limited Liability Vehicles ("LLVs").  These acquisitions have made significant contributions to the capacity retained by Helios for both 2014 and 2015 underwriting years.  The table shows the current position of the capacity fund retained by Helios.

 

 

Helios Capacity Fund as at 30th June 2016

Underwriting Year of Account

2014

£m

2015

£m

2016

£m

Total Capacity

34.4

31.3

32.7

Helios Retained Capacity

19.5

15.2

9.8

Proportion of capacity retained.

57%

48%

30%

 

 

 

 

 

Our strategy of building the portfolio of syndicate capacity continues to rely on the flow of vehicles for sale at reasonable prices.   We continue to remain selective on the vehicles acquired and several vehicles have been sold recently at prices which were unattractive to us.  

 

As such, the Company is proposing to undertake a placing to provide readily available funds to acquire further LLV's when attractive opportunities arise.

 

We continue to reduce our exposure by 70% on the open underwriting year 2016 through quota share reinsurance.  The quota share reinsurers fund their share of the capital requirements and pay Helios a fee and a profit commission.  Stop loss reinsurance is bought to limit the Group's exposure in the event of large underwriting losses.

 

The Adjusted Net Asset Value per share (Humphreys valuation) has increased to £2.00 per share.   The Lloyds' capacity auctions are scheduled for mid November in 2016 and it is expected that there will continue to be strong demand for the top syndicates that make up a significant proportion of the Helios Capacity Fund.

 

The syndicates that Helios supports have announced overall increases in the business to be underwritten for 2017 which is expected to increase the Helios Capacity Fund by over £2 million. 

 

The Board currently expects that the syndicate results for the 2014 and 2015 underwriting years will exceed current mid-point forecasts published by the managing agents which should make a meaningful contribution to the Helios full year result.

 

 

Financial results summary

Six months ended 30 June 2016

 

6 months to June 2016

Underwriting Year

Helios retained

 capacity at

30 June 2016

£m

Portfolio mid

point forecasts

Total profit

currently

estimated

% earned

in the 2016 half year

calendar

Helios

profits

2014

19.5

11.3%

 2,205

29%

638

2015

15.2

7.2%

 1,090

55%

601

2016

9.8

N/A

 

 

(188)

 

 

 

 

 

1,051

Pre-acquisition

 

 

 

 

(117)

Fees from reinsurers

 

 

 

 

331

Stop loss costs

 

 

 

 

(121)

Operating costs

 

 

 

 

(637)

Other income

 

 

 

 

98

Operating profit

 

 

 

 

605

 

Restated 6 months to June 2015

Underwriting Year

Helios retained

 capacity at

30 June 2015

£m

Portfolio mid

point forecasts

Total profit

currently

estimated

% earned

in the 2015

half year calendar

Helios

profits

2013

19.0

11.0%

2,092

18.0%

375

2014

12.5

7.5%

934

57.0%

529

2015

8.6

N/A

 

 

(82)

 

 

 

 

 

822

Pre-acquisition

 

 

 

 

(26)

Fees from reinsurers

 

 

 

 

244

Stop loss costs

 

 

 

 

(400)

Operating costs

 

 

 

 

(610)

Other income

 

 

 

 

42

Operating profit

 

 

 

 

73

 

 

Year to 31 December 2015

Underwriting Year

Helios retained

 capacity at

 31 December

2015

£m

Portfolio mid

point forecasts

Total profit

currently

estimated

% earned

in the 2015

calendar

year

Helios

profits

2013

20.6

14.2%

2,925

41.0%

1,198

2014

14.3

8.9%

1,273

41.0%

854

2015

10.6

N/A

 

 

12

 

 

 

 

 

2,064

Pre-acquisition

 

 

 

 

(190)

Fees from reinsurers

 

 

 

 

385

Stop loss costs

 

 

 

 

(407)

Operating costs

 

 

 

 

(1,334)

Other income

 

 

 

 

91

Operating profit

 

 

 

 

609

 

 

 

Summary Balance Sheet

The summary Group balance sheet excludes items relating to syndicate participations. See Note 15 for further information.

 

6 Months to June 2016

 

6 Months to June 2015

Year to 31 December 2015

Intangible assets

10,907

7,942

 8,511

Funds at Lloyd's

4,954

1,773

 3,894

Other cash

2,975

3,702

 2,973

Other assets

1,304

1,258

 1,231

Total assets

20,140

14,675

 16,609

Deferred tax

3,002

2,546

 3,172

Other liabilities

4,722

2,274

 3,162

Total liabilities

7,724

4,820

 6,334

Total equity

12,416

9,855

 10,275

 

Summary Group Cash Flow

The summary group cash flow sheet excludes items relating to syndicate participations. See Note 15 for further information.

 

 

6 months to 30 June 2016

6 months to 30 June 2015

Year to 31 December 2015

 

 

 

 

Opening Balance (free cash)

                   2,972

                   2,704

                  2,704

 

 

 

 

Income

 

 

 

Acquired on acquisition

                      577

                      942

                     977

Distribution of profits (net of tax retentions)

                   3,378

                   2,329

                  2,510

Transfers from Funds at Lloyds'

                     2,258

                      870

                  1,167

Investment income

                         13

                         3

                       26

Other income

                          -

                        (4)

                     151

Sale of investments

                      15

                      225

                     260

Transfers from PTF accounts (early release)

                          -

                          -

                     221

 

 

 

 

Expenditure

 

 

 

Operating costs (inc Hampden / Nomina fees)

                     (250)

                     (237)

                    (774)

Reinsurance Cost

                     (237)

                     (275)

                    (275)

Payments to QS  reinsurers

                            -

                          -

                         -

Acquisition of LLV's

                  (4,885)

                  (2,316)

                 (2,316)

Transfers to Funds at Lloyds'

                     (861)

                     (220)

                 (1,351)

Tax

                        (5)

                         1

                       (7)

Dividends paid

                            -

                     (320)

                    (320)

Closing balance

                   2,975

                   3,702

                  2,973

 

 

Condensed consolidated statement of comprehensive income

Six months ended 30 June 2016

 

 

 

Note

6 months ended 30 June 2016

Unaudited

£'000

Restated  6 months ended 30 June 2015 Unaudited £'000

12 months ended 31 December 2015 Audited £'000

Gross premium written

4

17,585

11,942

21,511

Reinsurance premium ceded

 

(4,710)

(3,369)

(5,582)

Net premium written

4

12,875

8,573

15,929

Change in unearned gross premium provision

 

(4,343)

(2,369)

(162)

Change in unearned reinsurance premium provision

 

1,650

918

93

 

 

(2,693)

(1,451)

(69)

Net earned premium

3,4

10,182

7,122

15,860

Net investment income

6

528

215

255

Other income

 

330

244

392

Revenue

 

11,040

7,581

16,507

Gross claims paid

 

(5,769)

(4,843)

(9,349)

Reinsurers' share of gross claims paid

 

745

790

1,650

Claims paid, net of reinsurance

 

(5,024)

(4,053)

(7,699)

Change in provision for gross claims

 

(183)

403

615

Reinsurers' share of change in provision for gross claims

 

(2,040)

(819)

(431)

Net change in provision for claims

 

(2,223)

(416)

184

Net insurance claims and loss adjustment expenses

4

(7,247)

(4,469)

(7,515)

Expenses incurred in insurance activities

 

(2,808)

(2,703)

(7,571)

Other operating expenses

 

(380)

(336)

(812)

Operating expenses

 

(3,188)

(3,039)

(8,383)

Operating profit before goodwill and impairment

4

605

73

609

Goodwill on bargain purchase

12

-

196

244

Impairment of goodwill

12

-

(45)

(136)

Impairment of syndicate capacity

 

39

-

(63)

Profit before tax

 

644

224

654

Income tax charge

7

26

26

135

Profit for the period

 

670

250

789

Other comprehensive income for the period, net of tax

 

216

-

121

Total other comprehensive income for the period

 

216

-

121

 

 

 

 

 

 

 

 

 

 

Profit for the period attributable to owners of the Parent

 

886

250

910

Total comprehensive income for the period attributable to owners of the Parent

 

886

250

910

Earnings per share attributable to owners of the Parent

 

 

 

 

Basic and diluted

8

6.38p

2.89p

8.38p

 

The profit attributable to owners of the Parent and earnings per share set out above are in respect of continuing operations.

The notes are an integral part of these Financial Statements.

 

 

 

Condensed consolidated statement of financial position

Six months ended 30 June 2016

 

 

 

Note

6 months ended 30 June 2016

Unaudited

£'000

Restated 6 months ended 30 June 2015 Unaudited £'000

12 months ended 31 December 2015 Audited £'000

Assets

 

 

 

 

Intangible assets

 

10,907

7,942

8,511

Reinsurance assets:

 

 

 

 

- reinsurers' share of claims outstanding

5

7,689

4,851

5,657

- reinsurers' share of unearned premium

5

3,527

2,278

1,501

Other receivables, including insurance and reinsurance receivables

 

28,579

19,040

20,427

Prepayments and accrued income

 

4,618

3,114

3,070

Financial assets at fair value through profit or loss

 

38,004

25,388

31,797

Cash and cash equivalents

 

5,668

5,127

3,634

Total assets

 

98,992

67,740

74,597

Liabilities

 

 

 

 

Insurance liabilities:

 

 

 

 

- claims outstanding

5

43,060

28,258

32,985

- unearned premium

5

18,054

12,368

11,169

Deferred income tax liabilities

 

3,002

2,546

3,172

Other payables, including insurance and reinsurance payables

 

13,948

9,652

9,360

Accruals and deferred income

 

4,144

1,652

1,488

Total liabilities

 

82,208

54,476

58,174

Equity

 

 

 

 

Equity attributable to owners of the Parent:

 

 

 

 

Share capital

11

1,050

896

1,050

Share premium

11

9,901

7,556

9,901

Other reserves

 

337

-

121

Retained earnings

 

5,496

4,812

5,351

Total equity

 

16,784

13,264

16,423

Total liabilities and equity

 

98,992

67,740

74,597

 

The Financial Statements were approved and authorised for issue by the Board of Directors on 29 September 2016, and were signed on its behalf by:

 

 

Nigel Hanbury

Chief Executive

 

The notes are an integral part of these Financial Statements.

 

 

Condensed consolidated statement of changes in equity

Six months ended 30 June 2016

 

 

 

 

Attributable to owners of the Parent Restated

Consolidated

 

 

Note

Share

 capital

£'000

 Share

 premium

£'000

 Other reserves

£'000

Retained

earnings

£'000

Total

£'000

At 1 January 2016

 

1,050

9,901

121

5,351

16,423

Final dividend for year end 31 December 2015

 

-

-

-

(525)

(525)

Share issue

 

-

-

-

-

-

Profit for the period

 

-

-

216

670

886

At 30 June 2016

 

1,050

9,901

337

5,496

16,784

At 1 January 2015

 

853

6,996

-

5,019

12,868

Dividends paid

 

-

 

 

(457)

(457)

Share issue

 

43

560

-

-

603

Profit for the period restated

 

-

-

-

250

250

At 30 June 2015

 

896

7,556

-

4,812

13,264

At 1 January 2015

 

853

6,996

-

5,019

12,868

Dividends paid

 

-

 

 

(457)

(457)

Share issue

 

197

2,905

-

-

3,102

Profit for the period

 

-

-

121

789

910

At 31 December 2015

 

1,050

9,901

121

5,351

16,423

               

 

The notes are an integral part of these Financial Statements.

 

 

Condensed consolidated statement of cash flows

Six months ended 30 June 2016

 

 

 

 

 

Note

6 months ended 30 June 2016 Unaudited

£'000

Restated 6 months ended 30 June 2015 Unaudited £'000

12 months ended 31 December 2015 Audited

£'000

Cash flows from operating activities

 

 

 

 

Profit before tax

 

644

224

654

Adjustments for:

 

 

 

 

Other comprehensive income, gross of tax

 

270

-

149

Interest received

 

(4)

(2)

(60)

Investment income

6

(424)

(191)

(926)

Goodwill on bargain purchase

12

-

(196)

(244)

Impairment of goodwill

12

-

45

136

(Profit)/loss on sale of intangible assets

 

-

-

(120)

Impairment of intangible assets

 

(39)

-

63

Goodwill on acquisition

 

(449)

-

-

Changes in working capital:

 

 

 

 

-  change in fair value of financial assets held at fair value through profit or loss

6

(50)

255

360

-  (increase)/decrease in financial assets at fair value through profit or loss

 

(409)

1,822

1,020

- (increase)/decrease in other receivables

 

(3,234)

1,261

709

- (increase)/decrease in other payables

 

4,114

1,883

11

- net (increase)/decrease in technical provisions

 

5,236

(797)

(50)

Cash generated/(utilised) from operations

 

5,655

4,304

1,702

Income tax paid

 

2

2

161

Net cash inflow from operating activities

 

5,657

4,306

1,863

Cash flows from investing activities

 

 

 

 

Interest received

 

4

2

60

Investment income

 

424

191

926

Purchase of intangible assets

 

-

-

(2)

Proceeds from disposal of intangible assets

 

-

-

24

Acquisition of subsidiaries, net of cash acquired

 

(4,051)

(2,657)

(2,521)

Net cash inflow from investing activities

 

(3,623)

(2,464)

(1,513)

Cash flows from financing activities

 

 

 

 

Dividends paid to owners of the Parent

 

-

(320)

(321)

Net cash outflow from financing activities

 

-

(320)

(321)

Net increase in cash and cash equivalents

 

2,034

1,522

29

Cash and cash equivalents at beginning of period

 

3,634

3,605

3,605

Cash and cash equivalents at end of period

 

5,668

5,127

3,634

 

Cash held within the syndicates' accounts is £3,456,000 (2015: £1,411,000) of the total cash and cash equivalents held at the period end of £5,668,000 (2015: £3,634,000). The cash held within the syndicates' accounts is not available to the Group to meet its day-to-day working capital requirements.

Cash and cash equivalents comprise cash at bank and in hand.

The notes are an integral part of these Financial Statements.

 

 

Notes to the financial statements

Six months ended 30 June 2015

1. General information

The Company is a public limited company quoted on AIM. The Company was incorporated in England, is domiciled in the UK and its registered office is 40 Gracechurch Street, London EC3V 0BT. The Company participates in insurance business as an underwriting member at Lloyd's through its subsidiary undertakings.

2. Accounting policies

Basis of preparation

The Condensed Consolidated Interim Financial Statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting.

 

The Condensed Consolidated Interim Financial Statements are prepared for the six months ended 30 June 2016.

 

The Condensed Consolidated Interim incorporate the Financial Statements of Helios Underwriting plc, the Parent Company, and its directly and indirectly held subsidiaries being Hampden Corporate Member Limited, Nameco (No. 365) Limited, Nameco (No. 605) Limited, Nameco (No. 321) Limited, Nameco (No. 917) Limited, Nameco (No. 229) Limited, Nameco (No. 518) Limited, Nameco (No. 804) Limited, Halperin Underwriting Limited, Bernul Limited, Dumasco Limited, Nameco (No. 311) Limited, Nameco (No. 402) Limited, Updown Underwriting Limited, Nameco (No. 507) Limited, Nameco (No. 76) Limited, Kempton Underwriting Limited, Devon Underwriting Limited, Nameco (No 346) Limited, Helios UTG Partner Limited, Nomina No 035 LLP, Nomina No 342 LLP, Nomina No 380 LLP and Nomina No 372 LLP (Note 10).

The Condensed Consolidated Interim Financial Statements for the six months ended 30 June 2016 and 2015 are unaudited, but have been subject to review by the Group's auditors. The Condensed Consolidated Interim Financial Statements have been prepared in accordance with the accounting policies adopted for the year ended 31 December 2015.

 

The underwriting data on which these Condensed Consolidated Interim Financial Statements are based upon has been supplied by the managing agents of those syndicates which the Group supports. The data supplied is the 100% figures for each syndicate. The Group has applied its share of the syndicate participations to the gross figures to derive its share of the syndicates transactions, assets and liabilities.

 

Significant accounting policies

 

The Condensed Consolidated Interim Financial Statements have been prepared under the historical cost convention. The same accounting policies, presentation and methods of computation are followed in these Condensed Consolidated Interim Financial Statements as were applied in the preparation of the Group Financial Statements for the year ended 31 December 2015.  The new standards and amendments to standards and interpretations effective after 1 January 2016, as disclosed in the Annual Report for the year ended 31 December 2015, have not had a significant impact on the Condensed Consolidated Interim Financial Statements at 30 June 2016.

 

Change of accounting policy

Up to 31 December 2014 the Group's intangible asset, syndicate capacity, was stated at cost, less any provision for impairment at initial recognition, and amortised on a straight line basis over the useful economic life, which was estimated to be seven years.

As of 1 January 2015 the Group changed its accounting policy for intangible assets, being its syndicate capacity. The new accounting policy has been applied retrospectively, as if the policy had always been in place.  This impact of this change in accounting policy was to increase retained profits by £2,383,000 as 1 January 2014, full details were disclosed in the financial statements for the year ended 31 December 2015.

The new accounting policy adopted measures the intangible asset, syndicate capacity, at cost less any impairment.  The change in accounting policy was approved by the Board after the 2015 interim results were announced, accordingly the period ended 30 June 2015 has been restated to add back the amortisation of £476,000 from the condensed consolidated statement of comprehensive income to the intangible assets in the condensed consolidated statement of financial position.

Historically, the Group's quota share arrangements have been shown net of profit share payable less fees receivable in the condensed consolidated statement of comprehensive income.  When preparing the financial statements for 31 December 2015 and 30 June 2016, the profit share payable has been restated to show as gross of fees receivable to provide consistent presentation.  The fees receivable of £244,000 are now shown as other income rather than as part of reinsurance ceded.

 

3. Segmental information

Nigel Hanbury is the Group's chief operating decision-maker. He has determined its operating segments based on the way the Group is managed, for the purpose of allocating resources and assessing performance.

The Group has three segments that represent the primary way in which the Group is managed, as follows:

•  syndicate participation;

•  investment management; and

•  other corporate activities.

6 months ended 30 June 2016 Unaudited

Syndicate

participation

£'000

Investment

management

£'000

Other

corporate

activities

£'000

Total

£'000

Net earned premium

10,741

-

(559)

10,182

Net investment income

495

33

-

528

Other income

-

-

330

330

Net insurance claims and loss adjustment expenses

(7,247)

-

-

(7,247)

Expenses incurred in insurance activities

(2,241)

-

(567)

(2,808)

Other operating expenses

-

-

(380)

(380)

Goodwill on bargain purchase

-

-

-

-

Impairment of goodwill

-

-

-

-

Impairment of syndicate capacity (see Note 13)

-

-

39

39

Profit before tax

1,748

33

(1,137)

644

 

Restated 6 months ended 30 June 2015 Unaudited

Syndicate

participation

£'000

Investment

management

£'000

Other

corporate

activities

£'000

Total

£'000

Net earned premium

7,765

-

(643)

7,122

Net investment income

206

9

-

215

Other income

-

-

244

244

Net insurance claims and loss adjustment expenses

(4,469)

-

-

(4,469)

Expenses incurred in insurance activities

(2,420)

-

(283)

(2,703)

Other operating expenses

-

-

(336)

(336)

Goodwill on bargain purchase

-

-

196

196

Impairment of goodwill

-

-

(45)

(45)

Impairment of syndicate capacity (see Note 13)

 

 

 

 

Profit before tax

1,082

9

(867)

224

 

12 months ended 31 December 2015 Audited

Syndicate

participation

£'000

Investment

management

£'000

Other

corporate

activities

£'000

Total

£'000

Net earned premium

17,257

-

(1,397)

15,860

Net investment income

250

5

-

255

Other income

-

-

392

392

Net insurance claims and loss adjustment expenses

(7,515)

-

-

(7,515)

Expenses incurred in insurance activities

(7,178)

-

(393)

(7,571)

Other operating expenses

35

-

(847)

(812)

Goodwill on bargain purchase

-

-

244

244

Impairment of goodwill

-

-

(136)

(136)

Impairment of syndicate capacity (see Note 13)

-

-

(63)

(63)

Profit before tax

2,849

5

(2,200)

654

 

The Group does not have any geographical segments as it considers all of its activities to arise from trading within the UK.

No major customers exceed 10% of revenue.

Net earned premium within 2016 other corporate activities totalling £559,000 (2015: 1,397,000 - 2013, 2014 and 2015 years of account) represents the 2014, 2015 and 2016 years of account net Group quota share reinsurance premium payable to Hampden Insurance Guernsey PCC Limited - Cell 6. This net quota share reinsurance premium payable is included within "reinsurance premium ceded" in the Consolidated Income Statement of the period.

 

 

4. Operating profit before goodwill and impairment

 

Underwriting year of account*

 

 

 

 

6 months ended 30 June 2016

2014 and prior

£'000

 

2015

£'000

 

2016

£'000

 

Sub-total

£'000

Pre-

acquisition

£'000

Corporate

 reinsurance

£'000

Other

 corporate

£'000

Total

£'000

Gross premium written

432

2,485

16,319

19,236

(1,651)

-

-

17,585

Net premium written

428

2,143

12,254

14,825

(1,271)

(559)

(121)

12,875

Net earned premium

1,291

7,578

3,049

11,918

(1,056)

(559)

(121)

10,182

Other income

330

97

26

453

(23)

330

98

858

Net insurance claims and loss adjustment expenses

(382)

(4,289)

(3,269)

(7,940)

693

-

-

(7,247)

Operating expenses

61

(2,023)

(858)

(2,820)

269

-

(637)

(3,188)

Operating profit before goodwill and impairment

1,300

1,363

(1,052)

1,611

(117)

(229)

(660)

605

Quota share adjustment

(662)

(762)

865

(559)

-

559

-

-

Operating profit before goodwill and impairment after quota share adjustment

638

601

(187)

1,052

(117)

330

(660)

605

 

Underwriting year of account*

 

 

 

 

Restated 6 months ended 30 June 2015

2013

and prior

£'000

 

2014

£'000

 

2015

£'000

 

Sub-total

£'000

Pre-

acquisition

£'000

Corporate

 reinsurance

£'000

Other

 corporate

£'000

Total

£'000

Gross premium written

18

1,788

11,343

13,149

(1,207)

-

-

11,942

Net premium written

42

1,525

8,934

10,501

(885)

(643)

(400)

8,573

Net earned premium

655

5,884

2,343

8,882

(717)

(643)

(400)

7,122

Other income

148

46

12

206

(33)

244

42

459

Net insurance claims and loss adjustment expenses

116

(3,082)

(1,938)

(4,904)

435

-

-

(4,469)

Operating expenses

(409)

(1,675)

(635)

(2,719)

290

-

(610)

(3,039)

Operating profit before goodwill and impairment

510

1,173

(218)

1,465

(25)

(399)

(968)

73

Quota share adjustment

(135)

(644)

136

(643)

-

643

-

-

-Operating profit before goodwill and impairment after quota share adjustment

375

529

(82)

822

(25)

244

(968)

73

 

 

Underwriting year of account*

 

 

 

 

12 months ended 31 December 2015

2013

and prior

£'000

 

2014

£'000

 

2015

£'000

 

Sub-total

£'000

Pre-

acquisition

£'000

Corporate

 reinsurance

£'000

Other

 corporate

£'000

Total

£'000

Gross premium written

(25)

2,362

21,331

23,668

(2,157)

-

-

21,511

Net premium written

(148)

2,009

17,607

19,468

(1,735)

(1,397)

(407)

15,929

Net earned premium

712

9,092

9,475

19,279

(1,615)

(1,397)

(407)

15,860

Other income

170

62

22

254

(80)

382

91

647

Net insurance claims and loss adjustment expenses

1,414

(4,190)

(5,468)

(8,244)

726

3

-

(7,515)

Operating expenses

(706)

(3,160)

(3,962)

(7,828)

779

-

(1,334)

(8,383)

Operating profit before goodwill and impairment

1,590

1,804

67

3,461

(190)

(1,012)

(1,650)

609

Quota share adjustment

(392)

(950)

(55)

(1,397)

-

1,397

-

-

-Operating profit before goodwill and impairment after quota share adjustment

1,198

854

12

2,064

(190)

385

(1,650)

609

 

Pre-acquisition relates to the element of results from the new acquisitions before they were acquired by the Group.

*     The underwriting year of account results represent the Group's share of the syndicates' results by underwriting year of account before corporate member level reinsurance and members' agents charges.

 

 

5. Insurance liabilities and reinsurance balances

Movement in claims outstanding

 

Gross

£'000

Reinsurance

£'000

Net

£'000

At 1 January 2016

32,985

5,657

27,328

Increase in reserves arising from acquisition of subsidiary undertakings

6,643

1,142

5,501

Movement of reserves

183

(2,040)

2,223

Other movements

3,249

2,930

319

At 30 June 2016

43,060

7,689

35,371

 

Included within other movements are the 2013 and prior years' claims reserves reinsured into the 2014 year of account on which the Group does not participate and currency exchange differences.

Movement in unearned premium 

 

Gross

£'000

Reinsurance

£'000

Net

£'000

At 1 January 2016

11,169

1,501

9,668

Increase in reserves arising from acquisition of subsidiary undertakings

2,616

451

2,164

Movement of reserves

4,343

1,650

2,693

Other movements

(74)

(75)

2

At 30 June 2016

18,054

3,527

14,527

 

6. Net investment income

 

6 months ended 30 June 2016 Unaudited

£'000

 

6  months ended 30 June 2015 Unaudited £'000

12 months ended 31 December

2015 Audited

£'000

Investment income

424

191

926

Realised gains on financial assets at fair value through profit or loss

48

193

(327)

Unrealised losses on financial assets at fair value through profit or loss

52

(171)

(360)

Investment management expenses

-

-

(44)

Bank interest

4

2

60

Net investment income

528

215

255

 

7. Income tax charge

Analysis of tax charge/(credit) in the period

 

6 months ended 30 June 2016 Unaudited

£'000

 

 

6 months ended 30 June 2015 Unaudited  £'000

12 months ended 31 December 2015 Audited

£'000

Income tax charge

(26)

(26)

(135)

 

The income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate used is 20% (2015: 20%). Material disallowed terms have been adjusted for in the income tax calculation.

 

8. Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders after tax by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the period, plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

The Group has no dilutive potential ordinary shares.

Earnings per share has been calculated in accordance with IAS 33 "Earnings per share".

The earnings per share and weighted average number of shares used in the calculation are set out below:

 

6 months ended 30 June 2016 Unaudited

Restated

6 months ended 30 June 2015 Unaudited

12 months ended 31 December 2015 Audited

Profit for the period after tax attributable to ordinary shareholders

670,000

250,000

£789,000

Weighted average number of shares in issue

10,495,350

8,640,938

9,411,794

Basic and diluted earnings per share

6.38

2.89

8.38p

 

9. Dividends paid or proposed

A Dividend of 5.0p per share was proposed and agreed at the AGM (2015: 5.1p).

 

10. Investments in subsidiaries

 

30 June

2016

£'000

30 June

2015

£'000

31 December

2015

£'000

Total

19,503

8,705

14,706

 

At 30 June 2016 the Company owned 100% of the following companies and limited liability partnerships, either directly or indirectly. All subsidiaries are incorporated in England and Wales.

Company or partnership

Direct/indirect interest

2016

ownership

2015

 ownership

Principal activity

Hampden Corporate Member Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 365) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 605) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 321) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 917) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 229) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 518) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 804) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Halperin Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Bernul Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Dumasco Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 311) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 402) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Updown Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 507) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Nameco (No. 76) Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Kempton Underwriting Limited

Direct

100%

100%

Lloyd's of London corporate vehicle

Devon Underwriting Limited

Direct

100%

-

Lloyd's of London corporate vehicle

Nameco (No 346) Limited

Direct

100%

-

Lloyd's of London corporate vehicle

Nomina No 035 LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Nomina No 342 LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Nomina No 380 LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Nomina No 372 LLP

Indirect

100%

100%

Lloyd's of London corporate vehicle

Helios UTG Partner Limited

Direct

100%

100%

Corporate partner

 

Helios UTG Partner Limited, a subsidiary of the Company, owns 100% of Nomina No 035 LLP, Nomina No 342 LLP, Nomina No 380 LLP and Nomina No 372 LLP.

For details of all new acquisitions made during the period refer to Note 12.

 

11. Share capital and share premium

Allotted, called up and fully paid

 

 

Number of shares

Ordinary share

capital

£'000

Share

premium

£'000

Total

£'000

Ordinary shares of 10p each and share premium at 30 June 2015

8,956,787

896

7,556

8,452

Ordinary shares of 10p each and share premium at 31 December 2015

10,495,350

1,050

9,901

10,951

Ordinary shares of 10p each and share premium at 30 June 2016

10,495,350

1,050

9,901

10,951

12. Acquisition of Limited Liability Vehicles

 

Acquisitions of Limited Liability Vehicles are accounted for using the acquisition method of accounting. Comparing the consideration paid to the fair value of net assets acquired gives rise to goodwill.  Goodwill on bargain purchases is taken to the Consolidated Income Statement and Goodwill is taken to intangible assets and tested at each period end for impairment.  Details of which are shown below:

 

30 June 2016

30 June 2016

30 June 2015

30 June 2015

31 December 2015

31 December 2015

Company or partnership

Goodwill on bargain purchase

£'000

Goodwill

£'000

Goodwill on bargain purchase

£'000

Impairment of goodwill

£'000

Goodwill on bargain purchase

£'000

Impairment of goodwill

£'000

Nameco (No. 311) Limited

-

-

56

-

59

-

Nameco (No. 402) Limited

-

-

-

(45)

-

(30)

Updown Underwriting Limited

-

-

57

-

51

-

Nameco (No. 507) Limited

-

-

83

-

134

-

Nameco (No. 76) Limited

-

-

-

-

-

(52)

Kempton Underwriting Limited

-

-

-

-

-

(54)

Devon Underwriting Limted

-

100

-

-

-

-

Nameco (No. 346) Limited

-

350

-

-

-

-

 

-

450

196

(45)

244

(136)

 

Further details of individual 2016 acquisitions are shown below:

 

 (a) 2016 acquisitions

Devon Underwriting Limited

On 21 January 2016, Helios Underwriting plc acquired 100% of the issued share capital of Devon Underwriting Limited for a total consideration of £1,070.000 Devon Underwriting Limited is incorporated in England and Wales and is a corporate member of Lloyd's.

The acquisition has been accounted for using the acquisition method of accounting. After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair value of the net assets was £970,000. Goodwill of £100,000 arose on acquisition which has been recognised as an intangible asset and will be assessed at each period end for impairment. The following table explains the fair value adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:

 

Carrying value

£'000

Adjustments

£'000

Fair value

£'000

Intangible assets

-

604

604

Reinsurance assets:

 

 

 

- reinsurers' share of claims outstanding

332

-

332

- reinsurers' share of unearned premium

67

-

67

Other receivables, including insurance and reinsurance receivables

1,242

-

1,242

Prepayments and accrued income

164

-

164

Financial assets at fair value through profit or loss

1,863

-

1,863

Cash and cash equivalents

104

-

104

Insurance liabilities:

 

 

 

- claims outstanding

(2,121)

-

(2,121)

- unearned premium

(584)

(584)

Deferred income tax liabilities

(109)

(121)

(230)

Other payables, including insurance and reinsurance payables

(440)

-

(440)

Accruals and deferred income

(31)

-

(31)

Net assets acquired

487

483

970

 

 

 

 

Satisfied by:

 

 

 

Cash and cash equivalents

1,070

-

1,070

Total consideration

1,070

-

1,070

 

 

 

 

Goodwill

583

(483)

100

 

 

 

2014 year of account

2015 year of account

2016 year of account

Capacity acquired

1,866,053

1,298,575

1,244,242

 

The net earned premium and profit of Devon Underwriting Limited for the period since the acquisition date to 30 June 2016 are £448,000 and £66,000 respectively.

 

Goodwill has arisen on the acquisition of Devon Underwriting Limited as a result of the purchase consideration being in excess of the fair value of net assets acquired.

 

Nameco (No. 346) Limited

 

On 27 May 2016, Helios Underwriting plc acquired 100% of the issued share capital of Nameco (No.346) Limited for a total consideration of £3,728,000. Nameco (No. 346) Limited is incorporated in England and Wales and is a corporate member of Lloyd's.

The acquisition has been accounted for using the acquisition method of accounting. After the alignment of accounting policies and other adjustments to the valuation of assets and liabilities to reflect their fair value at acquisition, the fair value of the net assets was £3,378,000. Goodwill of £350,000 arose on acquisition, which has been recognised as an intangible asset and will be assessed at each period end for impairment. The following table explains the fair value adjustments made to the carrying values of the major categories of assets and liabilities at the date of acquisition:

 

Carrying value

£'000

Adjustments

£'000

Fair value

£'000

Intangible assets

3

1,300

1,303

Reinsurance assets:

 

 

 

- reinsurers' share of claims outstanding

810

-

810

- reinsurers' share of unearned premium

384

-

384

Other receivables, including insurance and reinsurance receivables

4,502

-

4,502

Prepayments and accrued income

558

-

558

Financial assets at fair value through profit or loss

3,598

-

3,598

Cash and cash equivalents

643

-

643

Insurance liabilities:

 

 

 

- claims outstanding

(4,522)

-

(4,522)

- unearned premium

(2,032)

-

(2,032)

Deferred income tax liabilities

(271)

(260)

(531)

Other payables, including insurance and reinsurance payables

(1,130)

-

(1,130)

Accruals and deferred income

(205)

-

(205)

Net assets acquired

2,338

1,040

3,378,

 

 

 

 

Satisfied by:

 

 

 

Cash and cash equivalents

3,728

-

3,728

Total consideration

3,728

-

3,728

 

 

 

 

Goodwill

1,390

(1,040)

350

 

 

 

2014 year of account

2015 year of account

2016 year of account

Capacity acquired

3,367,971

3,187,015

3,320,877

 

The net earned premium and profit of Nameco (No. 346) Limited for the period since the acquisition date to 30 June 2016 are £270,000 and £31,000 respectively.

 

Goodwill has arisen on the acquisition of Nameco (No. 346) Limited as a result of the purchase consideration being in excess of the fair value of net assets acquired.

 

Had the two Limited Liability Vehicles been consolidated from 1 January 2016, the Consolidated Statement of Comprehensive Income would show net earned premium of £1,774,000 and a profit after tax of £232,000.

 

13. Related party transactions

Helios Underwriting plc has inter-company loans with its subsidiaries which are repayable on three months' notice provided it does not jeopardise each company's ability to meet its liabilities as they fall due. All inter-company loans are therefore classed as falling due within one year. The amounts outstanding as at 30 June 2016 are set out below:

Company

30 June 2016 Unaudited

£'000

30 June 2015 Unaudited £'000

31 December

2015

£'000

Balances due from/(to) Group companies at the period end:

 

 

 

Hampden Corporate Member Limited

(221)

335

327

Nameco (No. 365) Limited

(40)

50

(5)

Nameco (No. 605) Limited

(281)

(118)

(4)

Nameco (No. 321) Limited

(40)

(35)

9

Nameco (No. 917) Limited

2,357

221

1,451

Nameco (No. 229) Limited

12

13

58

Nameco (No. 518) Limited

(47)

(33)

14

Nameco (No. 804) Limited

(99)

99

274

Halperin Underwriting Limited

(55)

(48)

32

Bernul Limited

(59)

(33)

47

Dumasco Limited

(183)

(24)

177

Nameco (No. 311) Limited

(69)

(181)

37

Nameco (No. 402) Limited

(220)

(241)

(104)

Updown Underwriting Limited

540

(197)

713

Nameco (No. 507) Limited

(56)

-

660

Nameco (No. 76) Limited

12

-

393

Kempton Underwriting Limited

188

-

573

Devon Underwriting Limited

(113)

-

-

Nameco (No 346) Limited

(892)

-

-

Nomina No 035 LLP

-

-

-

Nomina No 342 LLP

-

-

-

Nomina No 380 LLP

-

-

-

Nomina No 372 LLP

-

-

-

Helios UTG Partner Limited

107

1,776

553

Total (note 15)

841

1,584

5,205

 

Helios Underwriting plc and its subsidiaries have entered into a management agreement with Nomina plc. Jeremy Evans, a Director of Helios Underwriting plc and its subsidiary companies, is also a Director of Nomina plc. Under the agreement, Nomina plc provides management and administration, financial, tax and accounting services to the Group for an annual fee of £142,000 (2015: £112,000).

 

The Limited Liability Vehicles have entered into a members' agent agreement with Hampden Agencies Limited. Jeremy Evans, a Director of Helios Underwriting plc and its subsidiary companies, is also a director of Hampden Capital plc, which controls Hampden Agencies Limited. Under the agreement, the Limited Liability Vehicles will pay Hampden Agencies Limited a fee based on a fixed amount, which will vary depending upon the number of syndicates the Limited Liability Vehicles underwrite on a bespoke basis, and a variable amount depending on the level of underwriting through the members' agent pooling arrangements. In addition, the Limited Liability Vehicles will pay profit commission on a sliding scale from 1% of the net profit up to a maximum of 10%. The total fees payable for 2016 are set out below:

Company

30 June 2016 Unaudited

£'000

30 June 2015 Unaudited £'000

31 December

2015

£'000

Hampden Corporate Member Limited

34

43

43

Nameco (No. 365) Limited

7

11

11

Nameco (No. 605) Limited

34

36

36

Nameco (No. 321) Limited

10

14

13

Nameco (No. 917) Limited

121

7

7

Nameco (No. 229) Limited

9

10

10

Nameco (No. 518) Limited

13

18

18

Nameco (No. 804) Limited

23

32

32

Halperin Underwriting Limited

-

14

14

Bernul Limited

-

9

9

Dumasco Limited

-

-

-

Nameco (No. 311) Limited

12

17

17

Nameco (No. 402) Limited

12

18

18

Updown Underwriting Limited

-

1

1

Nameco (No. 507) Limited

21

26

26

Nameco (No. 76) Limited

12

-

16

Kempton Underwriting Limited

-

-

11

Devon Underwriting Limited

9

-

-

Nameco (No 346) Limited

51

-

-

Nomina No 035 LLP

10

14

14

Nomina No 342 LLP

9

14

14

Nomina No 380 LLP

15

13

13

Nomina No 372 LLP

10

16

16

Helios UTG Partner Limited

-

-

-

Total

412

313

339

 

 

The Group entered into quota share reinsurance contracts for the 2014, 2015 and 2016 years of account with Hampden Insurance PCC (Guernsey) Limited - Cell 6.  The Limited Liability Vehicles' underwriting year of account quota share participations are set out below:

Company or partnership

2014

2015

2016

Hampden Corporate Member Limited

70%

70%

-

Nameco (No. 365) Limited

70%

70%

-

Nameco (No. 605) Limited

70%

70%

-

Nameco (No. 321) Limited

70%

70%

-

Nameco (No. 917) Limited

70%

70%

70%

Nameco (No. 229) Limited

70%

70%

-

Nameco (No. 518) Limited

70%

70%

-

Nameco (No. 804) Limited

70%

70%

-

Halperin Underwriting Limited

70%

70%

-

Bernul Limited

70%

70%

-

Dumasco Limited

-

-

-

Nameco (No. 311) Limited

-

70%

-

Nameco (No. 402) Limited

-

70%

-

Updown Underwriting Limited

-

70%

-

Nameco (No. 507) Limited

-

-

-

Nameco (No. 76) Limited

-

-

-

Kempton Underwriting Limited

-

-

-

Devon Underwriting Limited

-

-

70%

Nameco (No. 346) Limited

-

-

70%

Helios UTG Partner Limited

-

-

-

Nomina No 035 LLP

70%

70%

-

Nomina No 342 LLP

70%

70%

-

Nomina No 380 LLP

70%

70%

-

Nomina No 372 LLP

70%

70%

-

 

Nigel Hanbury, a Director of Helios Underwriting plc and its subsidiary companies, is also a director and majority shareholder in Hampden Insurance Guernsey PCC Limited - Cell 6. Hampden Capital plc, a substantial shareholder in Helios Underwriting plc, is also a substantial shareholder in Hampden Insurance Guernsey PCC Limited - Cell 6. Under the agreement, the Group accrued a net reinsurance premium payable of £1,768,000 (2015: £1,541,000) during the period.

 

14. Ultimate controlling party

The Directors consider that the Group has no ultimate controlling party.

 

15. Syndicate participations

The syndicates and members' agent pooling arrangements ("MAPA") in which the Company's subsidiaries participate as corporate members of Lloyd's are as follows:

 

Syndicate or MAPA number

Managing or members' agent

Allocated capacity per year of account

2016*

£

2015*

£

2014*

£

2013

£

33

Hiscox Syndicates Limited

2,757,244

2,563,464

2,413,044

1,182,895

218

ERS Syndicate Management Limited

1,313,279

1,216,951

1,457,074

824,028

308

Tokio Marine Kiln Syndicates Limited

100,000

184,528

244,528

-

386

QBE Underwriting Limited

800,289

711,365

729,313

347,509

510

Tokio Marine Kiln Syndicates Limited

5,030,389

4,755,942

4,422,296

2,688,563

557

Tokio Marine Kiln Syndicates Limited

575,567

553,433

543,871

301,001

609

Atrium Underwriters Limited

3,069,913

2,846,566

2,685,423

1,279,982

623

Beazley Furlonge Limited

3,919,673

3,238,987

3,188,218

1,431,928

727

S A Meacock & Company Limited

959,404

932,005

879,582

539,378

958

Canopius Managing Agents Limited

-

268,646

721,004

553,663

1176

Chaucer Syndicates Limited

551,376

456,986

422,886

356,992

1200

Argo Managing Agency Limited

170,411

233,819

298,071

157,370

1729

Asta Managing Agency Limited

42,000

103,758

139,443

-

1884

Charles Taylor Managing Agency Limited

-

25,000

-

-

1910

Asta Managing Agency Limited

1,177,236

-

-

-

1991

R&Q Managing Agency Limited

-

60,000

80,001

-

2010

Cathedral Underwriting Limited

844,831

765,756

788,022

527,247

2014

Pembroke Managing Agency Limited

1,450,000

1,417,938

1,427,152

-

2121

Argenta Syndicate Management Limited

-

260,341

160,341

120,309

2525

Asta Managing Agency Limited

171,414

134,698

116,690

20,000

2791

Managing Agency Partners Limited

3,796,944

3,592,198

3,818,945

2,646,342

4444

Canopius Managing Agents Limited

101,429

-

-

-

5820

ANV Syndicates Limited

109,479

269,738

329,738

224,170

6103

Managing Agency Partners Limited

253,649

1,157,998

1,206,224

611,224

6104

Hiscox Syndicates Limited

1,154,675

226,476

562,334

550,173

6105

Ark Syndicate Management Limited

-

611,146

590,814

115,296

6106

Amlin Underwriting Limited

-

-

-

361,805

6107

Beazley Furlonge Limited

413,737

413,737

413,737

32,500

6110

Pembroke Managing Agency Limited

-

-

-

1,072,507

6111

Catlin Underwriting Agencies Limited

1,818,311

1,583,657

1,522,247

775,544

6113

Barbican Managing Agency Limited

-

-

145,528

67,328

6117

Asta Managing Agency Limited

1,765,271

872,296

1,314,198

-

7200

Members' agent pooling arrangement

-

172,250

330,362

533,338

7201

Members' agent pooling arrangement

-

881,178

1,684,730

2,721,724

7202

Members' agent pooling arrangement

-

308,463

600,114

969,860

7203

Members' agent pooling arrangement

-

121,426

175,290

206,643

7211

Members' agent pooling arrangement

-

101,070

793,460

5,545,063

7217

Members' agent pooling arrangement

241,878

229,149

203,691

177,460

7227

Members' agent pooling arrangement

72,159

38,485

-

-

Total

 

32,660,558

31,309,450

34,408,371

26,941,842

 

* Including the new acquisitions in 2016.

 

16. Group-owned net assets

The Group statement of financial position includes the following assets and liabilities held by the syndicates on which the Group participates. These assets are subject to trust deeds for the benefit of the relevant syndicates' insurance creditors. The table below shows the split of the statement of financial position between Group and syndicate assets and liabilities:

 

 

30 June 2016

Restated 30 June 2015

31 December 2015

Group

£'000

Syndicate

£'000

Total

£'000

Group

£'000

Syndicate

£'000

Total

£'000

Group

£'000

Syndicate

£'000

Total

£'000

Assets

 

 

 

 

 

 

 

 

 

Intangible assets

10,907

-

10,907

7,942

-

7,942

8,511

-

8,511

Reinsurance assets:

 

 

 

 

 

 

 

 

 

- reinsurers' share of claims outstanding

-

7,689

7,689

-

4,851

4,851

-

5,657

5,657

- reinsurers' share of unearned premium

-

3,527

3,527

-

2,278

2,278

-

1,501

1,501

Other receivables, including insurance and reinsurance receivables

1,178

27,401

28,579

 

1,245

 

17,795

 

19,040

1,216

19,211

20,427

Prepayments and accrued income

126

4,492

4,618

13

3,101

3,114

15

3,055

3,070

Financial assets at fair value through profit or loss

 

5,717

32,287

38,004

 

2,723

 

22,665

 

25,388

4,644

27,153

31,797

Cash and cash equivalents

2,212

3,456

5,668

2,752

2,375

5,127

2,223

1,411

3,634

Total assets

20,140

78,852

98,992

14,675

53,065

67,740

16,609

57,988

74,597

Liabilities

 

 

 

 

 

 

 

 

 

Insurance liabilities:

 

 

 

 

 

 

 

 

 

- claims outstanding

-

43,060

43,060

-

28,258

28,258

-

32,985

32,985

- unearned premium

-

18,054

18,054

-

12,368

12,368

-

11,169

11,169

Deferred income tax liabilities

3,002

-

3,002

2,546

-

2,546

3,172

-

3,172

Other payables, including insurance and reinsurance payables

965

12,983

13,948

 

1,069

 

8,583

 

9,652

1,585

7,774

9,360

Accruals and deferred income

3,757

387

4,144

1,204

448

1,652

1,577

(89)

1,488

Total liabilities

7,724

74,484

82,208

4,819

49,657

54,476

6,334

51,839

58,174

Equity attributable to owners of the Parent

 

 

 

 

 

 

 

 

 

Share capital

1,050

-

1,050

896

-

896

1,050

-

1,050

Share premium

9,901

-

9,901

7,556

-

7,556

9,902

-

9,901

Other reserves

337

-

337

-

-

-

-

121

121

Retained earnings

1,128

4,368

5,496

1,403

3,409

4,812

(677)

6,028

5,351

Total equity

12,416

4,368

16,784

9,855

3,409

13,264

10,274

6,149

16,424

Total liabilities and equity

20,140

78,852

98,992

14,674

53,066

67,740

16,609

57,988

74,597

 

16. Events after the financial reporting period

A dividend of 5.0p per share was agreed at the AGM and has been accrued at the period end.  The dividend payment was settled on 6th July 2016.

A placing of new ordinary shares in the Company is being announced on 30th September 2016 expected to raise up to approximately £5m (net), together with a proposed open offer of new ordinary shares to shareholders to raise up to a further £3.2 million.

 

 

Independent Review Report to Helios Underwriting plc for the six months ended 30 June 2016

 

Introduction

We have been engaged by the Company to review the condensed consolidated interim financial information in the half yearly financial report for the six months ended 30 June 2016  which comprises the condensed consolidated income statement, condensed consolidated statement of financial position, condensed consolidated statement of cash flows, condensed consolidated statement of changes in shareholder' equity and related notes. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial information.

Directors' Responsibilities

The half yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34"), as adopted by the European Union and the AIM Rules for Companies. The annual Financial Statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed consolidated interim financial information included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed consolidated interim financial information in the half yearly financial report based on our review.  This report, including the conclusion, has been prepared for and only for the Company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

 

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial information in the half yearly financial report for the six months ended 30 June 2016 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules for Companies.

 

PKF Littlejohn LLP                                                                                                           

 

Chartered Accountants                                                                             

1 Westferry Circus  

Canary Wharf

London E14 4HD

 

29 September 2016

 

 

The Interim Report will be made available in electronic format on the Company's website, www.huwplc.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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