Chesnara PLC (LSE:CSN), the insurance and financial services company, has reported a 2% increase in its economic value, reaching £523 million, slightly missing Peel Hunt's estimate of £549 million.
According to Peel Hunt, the company's earnings were generally in line with expectations at £61 million. This includes a contribution of approximately £8.6 million from management initiatives and about £28 million from mergers and acquisitions (M&A).
The company generated £11 million in cash, slightly below Peel Hunt's forecast of £13.6 million.
However, when excluding the impact of financial market factors, the underlying cash generation was around £22 million. Chesnara also announced a dividend per share of 8.36 pence, a 3% increase year-over-year, closely aligning with Peel Hunt's estimate of 8.4 pence.
Peel Hunt notes that Chesnara maintains a strong financial position, with a solvency ratio of 205%.
The company remains optimistic about its ability to continue generating cash despite market volatility and is actively seeking further M&A opportunities. The shares are currently trading at 0.8 times the solvency-adjusted total net asset value, offering a cash return of 13%.
The broker reiterated its 'add' recommendation and 300p a share price target. In afternoon trade, the stock was changing hands for 278p, up 3.35%.