JLT Group's H1 pre-tax profit plummets YOY on exceptional items
JLT Group’s first half results were declined significantly compared to 2015 driven by exceptional items.
The group's pre-tax profit declined 46 percent in the first six months to £55.2 million compared to the same period a year ago.
The results were impacted by a net investment in JLT USA of £17.2 million compared to £12.6 million in the same period a year ago, the company noted. In addition, the results were hit by exceptional costs of £34.0 million, including restructuring costs of £10.2 million which relate to the UK & Ireland employee benefits business. The Group also reached a settlement and concluded litigation and made a charge of £22 million as an exceptional item in the second quarter. During the period there was also a loss of £1.4 million on the disposal of a business in Indonesia.
The group’s underlying pre-tax profit was £89.2 million in the first six months, down 7 percent compared to the second quarter of 2015. Excluding US investment, the group’s underlying profit before tax declined by two percent year over year over the period.
"Economic and industry conditions remain challenging; nevertheless we remain confident about the group’s ability to deliver year-on-year financial progress,” group chief executive Dominic Burke noted.
Overall, revenues grew 5 percent year over year to £619.4 million in the first six months of 2016.
