Standard Life sees 40% sales rise

Standard Life listed on the London stock exchange in July, 2006

Pensions, life insurance and investment group Standard Life has reported a 40% increase in quarterly sales, better than many analysts had forecast.

The company said that sales totalled £3.92bn in the three months to the end of March. Analysts had been expecting a figure closer to £3.7bn for the period.

Earlier this year, Standard Life said it would cut 1,000 jobs as part of plans to save £100m a year by 2009.

The Edinburgh-based company had already trimmed its workforce by 4,500 posts.

'Blots'

Much of the firm's earnings growth was driven by its UK pensions and life insurance business. Total UK sales climbed by 52% to £3.22bn.

Standard Life said it expected the strong performance to continue in the three months running from the start of April to the end of June.

Analysts said that while the earnings were a positive surprise, there were still a number of concerns.

"There are a few blots on the Standard Life copybook which are overhanging the shares," said Richard Hunter of Hargreaves Lansdown.

Mr Hunter explained that the firm's Canadian operations were underperforming, while it was still very heavily dependent on the UK.

By the close of trade on the London Stock Exchange, shares in Standard Life were down 2.75 pence, 0.82%, at 332p.