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Pre-close trading update
The Board announces that for the year ended
Group cash and deposits stood at
Revenue (unaudited):
Revenue £'m |
2016 |
2015 (restated*) |
% Chg |
Healthcare services |
28.1 |
25.1 |
12% |
Hubio |
15.0 |
14.4 |
4% |
Ingenie |
13.9 |
12.5 |
11% |
BAS |
3.7 |
2.8 |
32% |
Total Underlying* |
60.7 |
54.9 |
11% |
Non-underlying |
3.1 |
3.9 |
(21%) |
|
63.8 |
58.8 |
9% |
* Maine Finance and Road Angel were closed during the year and have consequently been reclassified as Non-underlying including 2015.
2016 saw continued significant change for the Group, with management activities focussed on the operational objectives outlined to shareholders at the beginning of 2016: to deal with the Group's losses and to establish a platform to create shareholder value from the Group's businesses.
The sale or closure of non-core assets and restructuring resulted in the elimination of losses of over
ptHealth and ingenie are now both profitable and growing.
Building on the strategy outlined in
Taking each of the operating businesses in turn:
Healthcare services:
ptHealth treated a record number of patients in 2016 and conducted a record number of patient assessments up 6% vs. 2015. All clinics that were loss making in 2015 have either been sold or were profitable during 2016.
InnoCare launched in Q2 2016 and has since been developing momentum, including growth in the network to 167 clinics from 152 clinics. From
Hubio:
The Hubio brand was launched in
As previously outlined, the development of the usage based insurance (UBI) business has been disappointing and 2016 was a year of intensive work externally to understand and to better qualify market opportunities and internally to optimise and focus resources. As a result, we start 2017 with a significantly streamlined organisation and plan to launch an updated UBI proposition by the end of Q1 2017 which will combine the best elements of Hubio and ingenie's technology, intellectual property and business process capabilities.
Hubio Fleet was launched in
Hubio EIS, our enterprise insurance solutions business, was restructured during 2016 resulting in this unit returning to profitability by Q3 2016. Hubio EIS's solutions continue to receive industry and customer acclaim but the key focus remains new business and to this end, the sales pipeline is now at its strongest level in its history.
The Hubio business in
As noted in the results for the six months ended
While significant progress has been made in dealing with the various opportunities and challenges across the Hubio businesses, it will be 2018 before we see profits or positive cash flows. However, the Board remains confident in the underlying technologies in Hubio, the associated significant market opportunities and the ability to see growth in 2017.
ingenie:
2016 was another successful year for ingenie with a 17% year on year increase in new business sales and a 22% increase of in force policies. Significant improvements were also achieved in customer retention during the year. The business remains profitable and is expected to grow revenue further during 2017 through new product initiatives.
As previously detailed, our technology has been used to create a white label proposition which can be licensed to third party brands/insurers who wish to create their own telematics based offering. ingenie is looking to find further high quality partners like ANWB for this product offering.
BAS:
In 2016, BAS launched a division targeting larger corporate opportunities in addition to its traditional SME customers. The first major corporate customer was won (providing energy procurement services for
Central overheads and cash:
Group cash and deposits stood at
2017 Outlook:
2017 will be another year of significant development for the Group. The continued reduction of losses and cash outflow will continue and the Board remains committed to maximise shareholder value and seek returns for these businesses in the most effective way and the Board will consider disposals where appropriate.
ptHealth and ingenie both continue to grow profitably. BAS is now demonstrating its capacity to be profitable and cash generative. Central costs will continue to be managed carefully at reduced levels consistent with the unresolved legacy matters and the needs of the organisation. The initiatives, restructuring and new launches in Hubio will now mean it will be 2018 before we see profits or positive cash flows for both Hubio and the Group as a whole.
"We have made good progress in dealing with losses and those businesses that were not viable or non-core as well as developing profitable platforms in ptHealth, ingenie and BAS. Hubio, will take longer and we have restructured the businesses in that division appropriately. Our offerings remain relevant in segments that will see substantial growth in the next few years and we are focussed on building propositions for growing markets."
For further information:
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Tel: 03333 448048 |
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Tel: 020 7418 8900 |
Dan Webster |
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1. Market expectations for the year ended
2. Group cash and deposits do not include the
This information is provided by RNS