- 1H cash generation up 19%
- Cash surplus £3.5 billion
- Interim dividend up 2.5%
Investors appeared less than wowed by the first-half update from pensions and savings provider Phoenix (PHNX) despite the group posting double-digit growth in cash generation and raising its interim dividend.
The shares dropped 15p or 2.5% to 562p making Phoenix the worst performer on the FTSE 100 to kick off the week.
STEADY PROGRESS
In terms of financial highlights, operating cash generation increased by 19% to £647 million, driven by an increased surplus from new and existing business, and total cash generation grew from £898 million to £950 million putting the group on track to reach the top of its full-year target of £1.4 billion to £1.5 billion.
Adjusted operating profit increased by 15% to £360 million thanks to profitable growth in both pensions and savings and retirement solutions.
The interim dividend was raised by 2.5% to 26.65p per share, level with 2023’s final dividend, and the firm reiterated its commitment to a ‘progressive and sustainable’ payout policy.
WHAT DID THE CEO SAY?
‘Phoenix's vision is to be the UK’s leading retirement savings and income business, and I am pleased with the initial progress we have made in executing on our 3-year strategy, as our 2024 interim financial results demonstrate’, commented chief executive Andy Briggs.
He added: ‘I am confident that as we continue to execute on our strategy we are building a growing business that is on track to deliver our financial targets and create shareholder value.’
Disclaimer: The author Ian Conway owns shares in Phoenix Group.
