By Charlie Conchie
Pensions giant Phoenix sailed past analysts’ estimates today as it more than doubled its long-term cash generation in the first six months of the year despite a “challenging market environment”.
In its half year report today, Phoenix said its new business long-term cash generation, a key measure of future profitability, surged 106 per cent to £885m from £403m.
Total cash generation in the six months dipped to £898m from £950m in the same period last year but the numbers comfortably topped the City’s predictions.
Analysts had been pricing in long term new business cash generation of just £519m for the period, according to acompany-compiled consensus.
Flows into its funds meanwhile rocketed 72 per cent to £3.1bn, with the firm now on track to post net positive fund flows across the business for the first time in its history.
In a statement today, Phoenix chief Andy Briggs said the firm had seen “strong organic growth” in the period and dsaid the firm was now on track to hit the top end of its guidance for the year.
“We continue to deliver our dependable cash generation, with £898m in [the first half], and are on track to deliver at the top-end of our £1.3-£1.4bn target range for 2023,” he added.
Our impressive first half performance has enabled the Board to declare an Interim dividend that is a five per cent year-on-year increase and executing our strategy will support us in delivering a dividend that is sustainable and grows over time.”
The results come after Phoenix snapped up the pensions business of Sun Life in April, which the firm said had seen “good integration” over the period.
Briggs said there was the potential for more dealmaking on the horizon and the firm would pounce on other opportunities.
Phoenix also hiked its dividend five per cent to 26p per share.
