Benfield profits falling due to weak dollar
by David Masters
Story link: Benfield profits falling due to weak dollar
The Benfield Group announced its results for 2007 this week, with profits falling 7.5% to £69.3 million. This is compared to profits of £74.9 million in 2006.
The fall in profits was blamed upon the weak dollar.
Benfield’s revenue for 2007 fell £16.1 million to £339.2 million, whilst trading margin fell from 21.1% in 2006 to 20.4%. Net income also fell, from £38.34 million in 2006 to £36.58 million. The group is predicting a further decline in profits this year.
The group released a statement, which read: “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.”
Commenting on the results, Benfield’s chief executive, Grahame Chilton, said that the group faced “considerable headwinds” in 2007.
However, he is trying to remain upbeat: “Nevertheless, we continued to deliver growth in revenue and trading profit on a constant currency basis.
“We further strengthened the unique mix of reinsurance knowledge, capital markets expertise and market leading analytics which is at the heart of Benfield’s franchise.
“We remain committed to delivering value to shareholders through our long-term goal of growth across cycles and I am confident of the group’s prospects for future progress.”