Delays spark losses in H1 for R&Q
Randall & Quilter (R&Q), the insurance services and investment company, reported a loss after tax of £3.6 million in the first six months of the year driven by delays.
The firm said that the significant loss has been “driven by delays in legacy acquisitions”. It also blamed restructuring and investment costs in US services and a lower investment return.
In the first half of 2014, R&Q posted a profit of £484 million.
R&Q’s gross written premiums (GWP) also decreased to £13.6 million in the first six months leading up to June 2015, compared with £16.8 million in the first six months of 2014.
The investment company added that although its core operations are performing satisfactorily, “slower income development in the US healthcare and legacy broking units and weakness in investment markets are likely to lead to the full year result being below market expectations”.
Ken Randall, chairman and chief executive officer (CEO), said: “Despite a first half loss, recent positive developments on large legacy transactions mean we have confidence in delivering a profitable outcome for the full year, which together with stronger expected cash generation to year end, enables us to maintain distributions per share for the period.
“The board is fully committed to improving the financial performance of the group and has launched a review of the business aimed at simplifying the Group’s business model to focus on core areas of profitable growth.”
