- Insurance company AUB Group (AUB) has released a trading update and revised earnings guidance for the 2020 financial year
- The company withdrew its earnings guidance for FY20 in late March, due to uncertainty surrounding the COVID-19 pandemic
- AUB Group has since seen strong earnings during April and May, which has improved the company’s underlying performance
- The company expects to deliver between $52 million and $53 million in underlying net profit after tax for 2020’s financial year
- AUB Group shares are down just 0.07 per cent on the ASX today, trading for $13.92 per share
Insurance company, AUB Group (AUB) has released a trading update, and revised earnings guidance for the 2020 financial year.
Like countless others, the company withdrew its earnings guidance for FY20 due to economic uncertainty caused by COVID-19. AUB Group officially withdrew its guidance on March 30, 2020, citing a pandemic-related upheaval.
However, the company has since seen strong earnings performance during the ensuing months of April and May. This time also provided the opportunity to gain a greater understanding about COVID-19’s impact on the group’s performance.
As a result, AUB Group is now in a better position to provide guidance for the 2020 financial year.
The company expects to deliver an underlying net profit after tax (NPAT) of $52 million of $53 million during the financial period. This represents a growth rate of 12 to 14 per cent, compared to the 2019 financial year.
However, this prediction assumes that there will be no significant changes to the seasonally important June Australian Broking renewal cycle. It is also based on the company’s unaudited financial performance for the 11-month period, which ended on May 31, 2020.
AUB Group’s Managing Director and Group CEO, Mike Emmett, commented on the company’s state amid current economic conditions.
“I’m pleased by the financial resilience of the business and the financial performance to date,” Mike commented.
“We’re accelerating progress with strategic initiatives and continuing to reduce costs, thereby improving the underlying performance of the Group,” he said.
AUB Group has also confirmed that its interim dividend of 14.5 cents per share will be paid on September 3, 2020. This is in line with the company’s announcement from March 30, 2020, when it withdrew its earnings guidance.
Now, however, the dividend reinvestment plan will be reinstated.
The company plans to announce the full details of 2020’s financial year results on August 24, 2020. This will include an announcement about a final dividend.
AUB Group shares are down just 0.07 per cent on the ASX today, trading for $13.92 per share at 10:44 am AEST.