KEY POINTS:
Financial services company Tower today reported a half year after tax profit of $20.2 million - a 28 per cent jump on last year's result.
Bottom line profits fell 91 per cent to $19.7m after the company last year making a one-off $199m gain from the sale of its Australian operations.
Revenue from ordinary activities rose 15 percent to $204.9m and earnings per share were up 27 per cent, at 10.59cps.
Operating earnings from its combined Health & Life business were $15.1 million, up from $11.8 million in the same period last year - an increase of 28 per cent.
No interim dividend was declared. In November it announced its first dividend payout in five years and said it wanted to make regular payouts, depending on performance.
The performance of its insurance business was also "encouraging" with operating earnings well ahead of the previous period. Net profit after tax lifted to $7.7 million and key ratios showed marked
Profits in its investments business fell to $2.3 million from $3.6 million, due to lower market returns, "increased project expenses" and compliance costs associated with KiwiSaver and the new PIE regime.
Tower Group Managing Director Rob Flannagan said he was satisfied with the results.
It's been a big week for Tower, after Guinness Peat Group's $67 million partial takeover offer for a further 15.3 per cent of the comapny opened on Monday.
If successful, the $2.30 a share offer, which closes on June 19, will extend GPG's stake in the company to 35 per cent.
To satisfy Takeovers Code requirements, GPG, which currently holds 19.7 per cent of the insurer and fund manager, must gain the approval of more than 50 per cent of Tower's shareholders for its partial offer.
Tower shares were down 1 cent to $2.23 shortly after today's result. They have fallen from $2.64 on June 19, 2007 but have lifted from a year low of $1.70 on March 20.
- BY NZ HERALD STAFF, NZPA
