The FTSE listed company said sales had fallen in the last six months of 2014, the first half of its 2015 financial year, dropping 47% to £29.4m over the period, compared to the same period in 2013.
However, this sharp drop is exaggerated by the termination of a lucrative distribution agreement in Japan in October 2013 after the distributor suspended operations. In the first three months of 2014, the regular premium new business brought in by the Japanese distributor was worth £10.9m.
Hansard said new business levels were however, increasing, with a 13% rise in its Q2 2015 figures to £15.6m against the previous quarter’s sales of £13.8m. Sales were particularly strong in the Middle East and Africa which accounted for £4m on a present value of new business premiums basis.
Assets under administration were also down slightly at the end of December at £923.7m from £985.9m at the end of December 2014.
In April last year, Hansard announced a strategy to turnaround its fortunes, with plans to build new distribution agreements and to penetrate into markets it had largely left untouched, such as the UAE and parts of Asia.
Part of this strategy saw it re-price some of its products and it now says it plans to extend its range of single premium products next month.
Chief executive Gordon Marr said the strategy should begin to yield results in the coming six months.
“Since the launch of our strategic plan last year, we have entered into 53 new relationships with IFA networks,” said Marr.
“We anticipate that these new relationships will begin to deliver increased levels of profitable new business, and diversify our exposure across a range of distributors and countries, in the second half of the financial year.”
The Isle of Man headquartered company also confirmed it still has writs outstanding in relation to litigation against Hansard Europe, which it closed in March 2013, of £5.2m and that it is still finalising a £5m liability in relation to chargeable events certificates with HM Revenue & Customs.
