viewChesnara PLC

Chesnara rallies after "highly effective " Capital Markets Day

"The near 10% fall in share price in recent weeks due, we believe, to the stock dropping out of an index (!) appears to us to be highly unwarranted," said house broker, Shore Capital

Dividend payments
Chesnara is acutely aware of its status as a primo dividend stock

The presentations to investors made by life assurance and pension policies manager Chesnara Plc (LON:CSN) on Tuesday has injected some zip into its share price.

The shares, which had almost doubled over a period of five years, have come off the top this month but were up 3.18% at 365p this afternoon after what house broker, Shore Capital, described as a “highly effective and very worthwhile Capital Markets Day”.

READ: Chesnara reveals big boost from L&G deal; company on look-out for further acquisitions

Shore said it was very evident from the presentations of the bosses of the respective operating entities in the UK, Sweden and Netherlands that all units are singing from the same hymn sheet.

All are focused on the delivery of economic value (EcV) through either acquisitions, selling new business and/or maximising the value of the total value of life assurance policies that the company manages; this translates to the conversion of EcV to cash, which can then be returned to shareholders, as appropriate.

“Chesnara is in a terrific place in respect of the potential to deliver value and dividends for shareholders. Management across the group are highly focused, ‘best in class’ in their respective areas, in our view, and well positioned to drive synergies across the company,” Shore said.

WATCH: Chesnara boss hails significant boost to profits and cash generation

The broker pointed to the near 10% fall in the share price in recent weeks, saying it represented a buying opportunity for income-focused investors; Chesnara is projected to offer a yield of around 5.7% based on Shore's forecasts for the current year.

Shore thinks the share price slide was caused by the stock ceasing to be a constituent of a stock market index.

Quick facts: Chesnara PLC

Price: 287 GBX

Market: LSE
Market Cap: £430.68 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Chesnara PLC named herein, including the promotion by the Company of Chesnara PLC in any Content on the Site, the Company receives from said...



Chesnara Plc 'quietly pleased' with first-half results

Life and pensions group Chesnara (LON:CSN) has said its first half pre-tax profits were hit by the Brexit vote and more specifically the subsequent move by the Bank of England to reduce interest rates. However chief executive John Deane told Proactive that the impact on cash generation...

on 09/06/2016



2 weeks ago

Holding(s) in Company

on 10/22/2019

Holding(s) in Company

on 10/22/2019

Holding(s) in Company

on 10/02/2019

Total Voting Rights

on 09/30/2019

Holding(s) in Company

on 09/30/2019

Holding(s) in Company

on 09/20/2019

2 min read