The move has prompted Govett to tackle one stock market concern by dropping 'embedded value' accounting for its earnings from London Pacific, its US life insurance arm. Under the more conservative US accounting rules, London Pacific quadrupled profits to dollars 19m, pushing the group's annual pre-tax profits to dollars 45.2m ( pounds 31.2m), 31 per cent ahead of the restated 1991 result. The 1992 profits would have been about dollars 13m higher on an embedded value treatment.
The recent outperformance of Govett's shares was helped by its introduction of an American depositary receipt programme. Even so, at 232p the shares remain modestly rated at seven times earnings. Govett improved its earnings by spending pounds 8.5m buying in 7 million shares at 120p-125p.
Govett's fund management operations increased profits by 13 per cent to dollars 14.3m.
An increased final dividend of 14.5 cents increased the total by 9 per cent to 24 cents.