Chesnara PLC (CSN)

[Laughton]

(which do not seem to me to have very much of note)

There's a lot to be said for "boring".

[lansdown]

Chesnara annual results:-
http://www.chesnara.co.uk/investor-rela ... ouncements


CASH GENERATION AND DIVIDENDS - 18 YEARS OF DIVIDEND GROWTH



· Total divisional base cash generation (1) for FY 2022 was £61.9m (FY 2021: £31.1m) despite volatile market conditions. Divisional commercial cash generation(1) for FY 2022 was £25.9m (FY 2021: £58.5m)

· Group commercial cash(1) generation of £46.6m in FY 2022 (FY 2021: £53.0m) represents 133% dividend coverage.

· The results during the year, combined with the group's balance sheet strength, support a further year of dividend growth. The Board has proposed a 2022 final dividend of 15.16p per share (2022 total dividend of 23.28p), which is a 3% increase compared to 2021 and extends the period of uninterrupted dividend growth to 18 years.

FULL YEAR DIVIDEND INCREASED FOR THE 18th CONSECUTIVE YEAR

Total dividends for the year increased by 3% to 23.28p per share (8.12p interim and 15.16p proposed final). This compares with 22.60p in 2021 (7.88p interim and 14.72p final). The two completed acquisitions and one recently announced acquisition are expected to positively support future cash generation.

Regards
Lansdown

[Dod101]

Thanks. I do not know what to make of these results. Their Solvency Ratio is up but it would seem only because they increased their debt to counter the reduction in the value of some assets during the year. There does not seem to be much real growth and of course a 3% increase in the dividend would surely indicate that there is not much room for increased distributions to shareholders. Chesnara is on a high yield but maybe for good reason. I suppose the dividend is safe enough but I cannot see any great increase in the share price in the offing.

It could be time to part company with it I think but I will have a think on it. If anyone has any opinions it would be good to hear from them because I cannot get my head round the results.

Dod

[GN100]

Joint Broker appointed. Mmm - fund raising coming?

https://www.investegate.co.uk/announcem ... er/7635649

GN

[monabri]

https://www.investegate.co.uk/announcem ... rt/7768505


CONTINUED ACQUISITION MOMENTUM DRIVES ECONOMIC VALUE GROWTH AND POSITIVE CASH GENERATION

Chesnara reports its 2023 half year results. Key highlights for the period are:


· Completion of the acquisition of Conservatrix's insurance portfolio in the Netherlands

· Acquisition of an individual protection portfolio from Canada Life UK

· New UK strategic partnership with SS&C Technologies

· Positive Group commercial cash generation of £21.8m

· Robust solvency of 205%, materially above our 140-160% normal operating range

· Increased Economic value ("EcV") of £523.2m (347p per share)

· Improved commercial new business growth of £6.3m delivered

· IFRS profit before tax of £16.0m, and increase of CSM of £54.2m in the period

· 3% increase to the interim dividend to 8.36p per share; the 19th year of consecutive increases


All in all , looks quite positive to me!

[Dod101]

Thanks. I had missed that. A modest increase in the dividend although I must say it all sounds very positive.

Another delayed interim but we won's go there.

Dod

[monabri]

Apologies, I should have included the dates.

Source : https://www.investegate.co.uk/announcem ... rt/7768505

"The interim dividend of 8.36p per share is expected to be paid on 10 November 2023. The ordinary shares will be quoted ex-dividend on the London Stock Exchange as of 28 September 2023. The record date for eligibility for payment will be 29 September 2023."


It's roughly a 3 week 'push back' in dates from last year.

https://www.dividenddata.co.uk/ex-divid ... chTerm=CSN

[peterh]

2023 Annual report https://otp.tools.investis.com/generic/regulatory-story.aspx?newsid=1803893&cid=694

Chesnara reports its 2023 full year results. Key highlights are:

· Completion of the acquisition of Conservatrix's insurance portfolio in the Netherlands

· Acquisition of an individual protection portfolio from Canada Life UK

· New UK strategic partnership with SS&C Technologies for policy administration

· Strong group commercial cash generation of £53.0m (FY 2022: £46.6m)

· Robust solvency of 205% (FY 2022: 197%), materially above our 140 - 160% normal operating range

· Economic value ("EcV") of £524.7m, 348p per share (FY 2022: £511.7m, 340p per share)

· Commercial value of new business of £10.1m (FY 2022: £9.5m)

· Proposed 3% increase to the full year dividend (total 2023 dividend of 23.97p per share)

· IFRS pre-tax profit of £1.8m (FY 2022: £62.1m loss)

Dividend information: The recommended final dividend of 15.61p per share is expected to be paid on 28 May 2024. The ordinary shares will be quoted ex-dividend on the London Stock Exchange as of 11 April 2024. The record date for eligibility for payment will be 12 April 2024.

[PrefInvestor]

CSN pays good dividends no doubt, but total return performance over the last 5 years is at best disappointing, down 1.x% and worse than that at times. Its share price has fallen by over 30% in the last 5 years so it’s dividend performance appears to have been at the expense of its share price.

I held it for a while in 2023 based on a recommendation, but I’ve dumped it since as it clearly hasn’t delivered a positive return in years.

I don’t mind boring but for me a positive total return from capital + dividends is essential.

ATB

Pref