Charles Taylor announces annual results for 2016
09 March 2017
Charles Taylor announced its annual results for 2016 this morning. The Group performed solidly overall in 2016, building on the strong growth achieved in 2015. Revenue grew significantly, while adjusted profit before tax and earnings have increased; we also made good progress on delivering our strategic growth strategy. We are reinvesting in the business to drive that growth, both organically and by undertaking strategic acquisitions, entering into joint ventures and making business investments. This will enable us to achieve scale economies, to diversify the business, and to deliver sustainable year-on-year growth in earnings, with reliable income streams. Our strategic investments are intended to create opportunities to drive future earnings growth in the medium to longer term.
Revenue increased by 18.1% to £169.3m and adjusted profit before tax increased by 4.0% to £14.8m.
Our investments, joint ventures, and acquisitions are focused on capturing the significant growth opportunities that we see in the global insurance services market. Research reports predict that the global market for insurance services will grow from US$4.8 trillion in 2016 to US$6.1 trillion by 2021 (Source: BusinessWire, 2 February 2017) We believe our deep expertise across the insurance market, our global reach and our focused business strategy positions us well to benefit from this future growth.
In line with the Group’s strategy to deliver growth in our core professional services businesses, we are making investments and driving forward numerous initiatives to grow the Group’s existing businesses. These include for example our investment to establish a significant new UK construction and engineering loss adjusting service. We also strengthened our Global Business Service teams.
In 2016, we drove forward four key strategic initiatives: the introduction of medical claims and assistance capabilities, the expansion of our insurance technology business, the development of our turn-key managing agency business and the extension of our Business Process Outsourcing (BPO) and Third Party Administration (TPA) services for both the general and life insurance market.
Among the many highlights of the year was the strategically important £30m acquisition of CEGA Group, a specialist provider of technical medical assistance and travel claims management services. This was purchased with the remainder of the proceeds of our 2015 Rights Issue. We also agreed to acquire a closed book of international life assurance business and Allied Dunbar International Fund Managers Limited from Zurich, which will enable us to enter the international fund administration services market.
We invested further in the training and development of existing staff to develop further our capabilities and to retain our top talent. Our annual staff engagement survey showed, for the second year running, that nine out of ten of our staff regard Charles Taylor as a great place to work that they would recommend to family and friends.
Our solid overall performance demonstrated the effectiveness of our diversified business model. Our Professional Services businesses performed well overall and our owned life business performed particularly well, benefiting from the profit on an acquisition of a life business in 2015.
The full results announcement is available here.