Admiral’s (LON:ADM) share price has surged in London in today’s session even as the car insurer disclosed a £33-million headwind from the Ogden rates. Investors, however, have instead focused on the company’s move to announce a special dividend.
As of 09:15 BST, Admiral’s share price had added 4.08 percent to 2,115.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.05 percent higher at 7,254.48 points. The group’s shares have added more than seven percent to their value over the past year, as compared with about a 4.7-percent fall in the Footsie.
Admiral posts half-year results
Admiral announced in a statement this morning that its turnover had climbed to £1.76 billion in the half year to June 30, from £1.66 billion in the prior-year period. The group’s operating profit meanwhile rose to £224.4 million during the reported period, from £216.3 million a year ago.
“If it’s a can’t-put-down, read-in-one-go page-turner that you’re after, then I’m afraid our half-year results don’t fit the bill. Frankly, they are a bit dull. Turnover up mid-single digits, profit up low-single digits,” the group’s chief executive David Stevens commented in the statement, adding that “profit growth, even if modest, is more exciting considering the £33 million Ogden headwind”.
Admiral also announced that it will be paying an interim dividend of 63.0p per share, representing a normal dividend of 41.8p per share and a special dividend of 21.2p per share.
Analysts on blue-chip company
The 17 analysts offering 12-month targets for the Admiral share price for the Financial Times have a median target of 1,960.00p, with a high estimate of 2,352.00p and a low estimate of 1,550.00p. As of August 10, the consensus forecast amongst 16 polled investment analysts covering the blue-chip car insurer has it that the company will underperform the market.