JLT profits shrink 7% on US investment

JLT profits shrink 7% on US investment

Jardine Lloyd Thompson’s profits have dropped 7 per cent to £170.1m, which the firm said reflects planned US investment.

According to its results for 2015, released today (1 March), the firm’s underlying profit before tax, excluding spending on its US business, is up 3 per cent to £190.6m.

In total, net investment in JLT USA was £20.5m against 2014’s figure of £2.7m.

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Profit margins at the firm came under pressure last year, down 160 basis points to 16.2 per cent, also because of the US expansion.

Dominic Burke, group chief executive, said the group will face a number of “external headwinds” this year.

“However, our focus remains on those factors that we can control and on maintaining the revenue momentum and cost control established over the last ten years.”

Excluding US investment, margins increased by 10 basis points to 18.4 per cent.

Earnings per share were down 2 per cent to 47p, but the total cash dividend of 30.6p was up 6 per cent, which reflected the board’s confidence in the group’s underlying trading performance, it said.

The firm had revenue growth of 5 per cent to £1.2bn, and organic revenue growth stood at 2 per cent, helped by rising revenue in its risk and insurance division.

Mr Burke added: “We remain confident in our strategy, our platform and our continued ability to grow.”