Admiral share price dips even as group posts rise in profit

Shares in Admiral Group (LON:ADM) have fallen deep into the red in London this morning even as the company posted a rise in profit and turnover for last year. Going forward, however, the company has cautioned on risks associated with the UK’s exit from the European Union.

As of 10:30 GMT, Admiral’s share price had given up 4.56 percent to 2,091.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.46 percent lower at 7,162.95 points. The group’s shares have lost nearly five percent of their value over the past year, as compared with about a 0.2-percent gain in the Footsie.

Admiral posts results

Admiral announced in a statement this morning that its share of profit before tax had climbed 18 percent to £479.3 million last year, while its turnover had come in 11 percent higher at £3.28 billion. The blue-chip insurer announced a full-year dividend of 126.0p, up 11 percent year-on-year.

The blue-chip group commented on the upcoming Brexit, assuring investors that it had restructured its business to mitigate a ‘no deal’ outcome. Admiral, however, nevertheless cautioned that the country’s exit from the EU brought risks to the group, including “the potential for market volatility, and the potential for the uncertainty or the emerging terms of exit to trigger or exacerbate less favourable economic conditions in the UK and other countries in which Admiral operates”.

Analysts on insurer

The 14 analysts offering 12-month price targets for Admiral for the Financial Times have a median target of 2,000.00p on the shares, with a high estimate of 2,440.00p and a low estimate of 1,550.00p. As of March 2, the consensus forecast amongst 15 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.

As of 10:48 GMT, Thursday, 07 March, Admiral Group plc share price is 2,091.00p.