How Resolution Has Fared During 2012

LONDON -- Resolution (LSE: RSL.L  ) has dropped 14% to 217 pence so far during 2012, making the share one of the year's worst performers in the FTSE 100 (UKX). During the same time, the blue-chip index has gained 4%.

The life group, which in the last few years has acquired Friends Provident, Axa UK Life and Bupa Health Assurance, doesn't seem to have impressed investors with its progress.

During March, Resolution's full-year results showed underlying UK operating profits before tax steady at 277 million pounds, although the group's dividend was lifted 10% to nearly 20 pence per share.

At the time, Mike Biggs, Resolution's chairman, said the company was "committed to returning surplus cash not required by the business to shareholders subject to market conditions and receiving the appropriate regulatory approvals."

However, during July, Resolution announced it had "determined that it would be inappropriate to make the [250 million pound] capital return originally targeted for the first half of 2012 and consequently announces its cancellation."

Mike Biggs then lamented:

"I understand that shareholders will be very disappointed that the Board has concluded not to return a second [250 million pounds] of capital but it would be inappropriate to do so against the backdrop of heightened investment, economic and regulatory uncertainty."

Then in August, Resolution's results showed half-year profits falling to 163 million pounds, although the interim payout was lifted 5% to 7.05 pence per share

No doubt Resolution's investors will be hoping for better share-price progress next year, helped perhaps by receiving that postponed 250 million-pound return of capital. For the moment, the trailing 20.49 pence per share dividend supports a 9.4% potential yield.

If you are seeking blue-chip ideas for 2013 and beyond, "8 Dividend Stocks Held by Britain's Super Investor" is an exclusive Fool report that names the FTSE shares the market-trouncing City investor is backing today, and the investing logic behind them.

You can discover the potential winners Woodford favors right now by downloading this free report while it remains available.

Are you looking to profit from this uncertain economy? "10 Steps to Making a Million in the Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free.

Further Motley Fool investment opportunities:

Maynard does not own any share mentioned in this article.

The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2049396, ~/Articles/ArticleHandler.aspx, 9/16/2014 3:38:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement