Turnover for Bridgwater Chamber of Commerce member Jelf insurance group has passed the £90m mark, which has 37 offices across the UK, in the year of its £260m takeover and de-listing from the London Stock Exchange.
Marsh, a subsidiary of Marsh & McLennan Companies, began talks to buy the business in August 2015 and the two companies agreed the terms of a £258m offer in September. The deal was sanctioned in November when a majority of Jelf shareholders at a court meeting and general meeting voted in favour.
According to recently filed accounts for Jelf Group plc, turnover was £94.7m in the year ending 30 September 2015, up from £82.6m in 2014. Earnings before interest, taxation, depreciation, amortisation and exceptional costs (EBITDAE) were £17.7m, up from £14.6m the year before.
However, it reported a pre-tax loss of £7m, compared with a 2014 pre-tax profit of £7.4m, after the company incurred exceptional costs of £16.3m, mostly in relation to the takeover.
Jelf completed four acquisitions during the period prior to the Marsh takeover. These were Birmingham insurance brokerage Cronin & Co, Beaumonts Insurance Group based primarily in Bradford and Leeds, claims consultancy and chartered loss adjustor Hamilton Bond and Libra Insurance Services, a general insurance broker based in North London.
The acquisitions provided a 20 per cent increase in the company’s insurance broking business to £66.5m, while EBITDAE increased by 26.2 per cent to £11.9m.
Revenues in its employee benefits division increased by 2.3 per cent to £21.2m while financial planning income rose 4.9 per cent to £6.9m.
In their report accompanying the accounts, the director said the takeover would “accelerate the achievement of Jelf’s strategic and financial objectives” and support it in meeting the “competitive and regulatory challenges” facing the sector.
Regarding the core insurance business they added: “The focus on client relations has seen retention rates increase, which allied with greater new business success, has driven an organic increase in revenues.
“In addition, the acquisitions have boosted revenues but the competition for new client mandates remains strong.”
Jelf, founded in 1989, has 37 offices across the UK and provides advice to more than 100,000 businesses and individuals.
