Investor news

Half year results 2015

OPERATING PROFIT UP 18%, NET CASH UP 11%, ROE1 19% 

FINANCIAL HIGHLIGHTS:

  • NET CASH GENERATION UP 11% TO £629M (H1 2014: £567M)
  • OPERATIONAL CASH GENERATION UP 8% TO £624M (H1 2014: £578M)
  • OPERATING PROFIT UP 18% TO £750M (H1 2014: £636M)
  • PROFIT AFTER TAX UP 8% TO £547M (H1 2014: £507M)
  • EARNINGS PER SHARE UP 7% TO 9.11P (H1 2014: 8.51P)
  • ADJUSTED EARNINGS PER SHARE2 UP 15% TO 9.79P (H1 2014: 8.51P)
  • RETURN ON EQUITY1 19.1% (H1 2014: 17.6%)
  • INTERIM DIVIDEND UP 19% TO 3.45P PER SHARE (H1 2014: 2.90P)

BUSINESS HIGHLIGHTS:

  • LGIM AUM UP 12% TO £714.6BN (H1 2014: £640.0BN)
  • LGIM EXTERNAL NET FLOWS UP 62% TO £13.8BN (H1 2014: £8.5BN)
  • ANNUITY ASSETS UP 13% TO £43.4BN (H1 2014: £38.5BN)
  • BULK PURCHASE ANNUITY PREMIUMS OF £1,146M (H1 2014: £3,135M)
  • UK PROTECTION PREMIUMS UP 4% TO £774M (H1 2014: £743M)
  • DIRECT INVESTMENTS UP 35% TO £6.2BN (H1 2014: £4.6BN)

Nigel Wilson, Group Chief Executive, said:
“Legal & General continues to deliver strong organic growth in the UK and the US from both our developing and established, market leading businesses. In addition we are disposing of, or closing non-core businesses and reducing costs in real and nominal terms.

The actions that we are taking allow us to focus on our chosen markets, enable us to continue to deliver low prices and better value for our increasing customer base and deliver attractive returns for our shareholders.

This financial and strategic discipline is driving our sixth year of double digit growth in net cash, operating profit and dividends – particularly noteworthy in H1 was the diversity of the strong operational and financial delivery, with an 18% increase in operating profit to £750m, the 19% increase in dividend per share to 3.45p and the 19% ROE.”

  1. Return on equity is calculated by taking annualised profit after tax attributable to equity holders of the Company (twice the half-year number), as an average of shareholders’ equity during the period. This excludes a £40m expense in relation to Legal & General France and Legal & General Gulf as a consequence of both operations being classified as held for sale.
  2. Adjusted earnings per share is calculated by dividing profit after tax by the weighted average number of ordinary shares in issue during the period, excluding the £40m expense as per note 1.

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