Bond market woes hit Lloyd Thompson
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.SHARES in Lloyd Thompson, the insurance broker, fell 15 per cent to 195p yesterday when the company issued a profits warning. Lloyd said falling bond prices had reduced its income from investments.
Insurance brokers hold large sums of money in cash or near- cash instruments such as gilts. They also constantly revalue investments in line with market movements, a policy that led to Lloyds profit warning yesterday.
However, analysts were also concerned that Lloyd pointed to continuing weak demand for its services. Before yesterday's news market estimates were for Lloyd to make pre-tax profits of between pounds 19.5m and pounds 21m in the 12 months to today.
But Lloyd said yesterday: 'The board now expects that pre-tax profit for the year will not be less than pounds 18m.' It made pounds 17.4m in 1993.
Despite the bad news Lloyd promised a dividend rise of 16 per cent to 7.8p. At yesterday's closing price the shares will generate a gross yield of 5 per cent.
Lloyd also agreed to pay an initial dollars 3m ( pounds 2m) for 49 per cent of Triangle Holdings, a Bermuda- based insurance broker. Subject to Triangle's profit performance, Lloyd may pay an additional dollars 2.4m. It has an option to buy the remaining 51 per cent in 1997.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments