Preliminary Results for the year ended 30 September 2008
03 February 2009
Jelf Group plc - Another year of strong growth
Jelf Group plc, an independent full service brokerage that supports businesses and individuals, announces strong results achieved through both acquisitions and organic growth.
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Financial highlights
- Revenue has increased by 59% to £63.1m (2007: £39.7m), driven principally by strategic acquisitions.
- EBITDA (before exceptional items) has increased by 40% to £10.1m (2007: £7.2m). Margins have declined to 16% (2007: 18%), mainly due to the difficult trading conditions for our Wealth Management business and the semi-fixed nature of Group costs.
- Strong operating cash flow of £10.5m (2007: £9.0m), which has allowed the Group to meet its deferred consideration payments from operating cash. Deferred consideration payments arising from past acquisitions will be substantially complete by the end of 2010.
- The £0.7m of exceptional costs relates principally to the restructuring carried out as part of the drive for organisational efficiency. This will generate cost savings.
- Diluted earnings per share (before amortisation and exceptionals) 13.7p (2007: 17.6p).
- The Group has a long term facility (expires in 2013) with the Royal Bank of Scotland, which will be used to cover earnouts in conjunction with operating cash.
Operating highlights
- Another progressive year highlighted by the acquisition of three leading regional insurance brokers: Manson Group (based in Manchester), Clarke Roxburgh Group (based in the West Midlands) and Argyll Group (based in Kent and East Sussex). All continue to perform in line with expectations and will provide a strong platform upon which the Group will develop its full range of services.
- 5% organic growth across the Group, excluding Wealth Management which has been affected by the severe economic conditions.
- Insurance: Group-wide insurance business fully integrated into a single placement strategy.
- Employee Benefits: Employee Benefits and Healthcare businesses combined, effective 1st October 2008, to create Jelf Employee Benefits. This will help us to present a co-ordinated proposition to our clients, further enhance cross-sales and capture scale economies.
Alex Alway, Group Chief Executive, commented:
"We are pleased to report another year of progressive growth, despite some very difficult trading conditions. In the early part of last year we made some high quality and strategic acquisitions that have extended our geographic footprint and generated opportunities for future organic growth. In the latter half of the year we turned our focus to the operating efficiencies of the business. The primary aim of this was, and continues to be, to ensure we continue to deliver excellent service and support to our clients in a difficult economic environment. We also want to improve profit margins and, partly in response to the difficult economic environment, we have taken action to reduce our cost base to bring it in line with current trading expectations. Jelf continues to be well placed to deliver further growth and shareholder value in the future."
Jelf Group plc
Alex Alway, Chief Executive
01454 272713
Rose Clark, Director of Finance
01454 272853
Cenkos Securities plc
Stephen Keys
020 7397 8900
Further information is available on Jelf at the Group's website: