13 Mar, 2008
Matthew Goodburn | 10:09:40 | 13 March 2008
in reinsurance broker Benfield Group were trading down almost 13%
in early trading after the group warned 2008 profits would be below
At 10:00am shares in the group were trading down 34.25p or 13% at
The group posted £50.9 million pretax profits for 2007
against £53 million last time as it admitted that the
movement of foreign currency exchange rates had had a negative
effect on 2007 revenues and trading results.
In a statement to the stock exchange the group said: 'The
difficult trading conditions of 2007 are likely to continue in the
short term and consequently, absent significant improvement in
market conditions, we anticipate the 2008 trading result will be
marginally below that for 2007.
Benfield said the weak dollar had impacted reported revenues by
£16.9 million and its trading results by £10.3 million.
Group revenues were £339.2 million, down from £355.3
million last time although at constant rates of exchange Benfield
said revenues increased by 0.2%.
The stock is well held by UK asset managers, with Jupiter holding
5% of the group and Hendersons around 3%.
Benfield produced a final dividend for 2007 of 9p giving it a full
year dividend of 13p, an 8% increase on last year.