Admiral drives toward higher profits and larger dividend

The company’s motor performance shifts up a gear.

Article updated: 15 August 2018 1:00pm Author: Graham Spooner

  • Shares rise 4% in early trading following solid first half
  • But the Beast from the East impacted the groups UK household arm and group remains cautious of a ‘no deal’ Brexit
  • We continue to recommend Admiral as a ‘hold’ for medium risk investors

Best known for its car insurance and cheesy television adverts, Admiral announced its interim results this morning giving a boost to its employees with many set to receive £1800 of shares.

Shares are up 4% in early morning trading as Admiral posted a 9% rise in half-year profit; up to £210.7m, assisted by a solid performance from the all-important car insurance business where profits were up by 11.3% to £249.5m.

Investors should be pleased with the 7% increase in the dividend to 60 pence and further encouragement should be found in the increasing customer base up 14% to 6.23m as well as the enlarged overall turnover up 14% to £1.66bn.

However the Cardiff-based group, which owns brands including Elephant and Confused.com, did report that the Beast from the East earlier this year had a detrimental impact on the group’s UK household division, pushing it into the red.

The share price has trended rather sideways over the last two years; however we continue to recommend the shares as a ‘hold’, for medium risk investors geared to income due to the strength of the motor business in the UK, improving overseas operations and the strong capital position.


All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

Graham Spooner portrait photo
Graham Spooner

Investment Research Analyst

Graham started out as a fully authorised dealer on the Stock Exchange trading floor and for various banks, before becoming an FSA-approved investment adviser. Now a respected voice in the media, Graham’s share tips and comments on the markets are frequently sought by the national press.