LONDON (Alliance News) - Curtis Banks Group PLC, the administrator of more than 39,000 self-invested personal pensions in the UK, on Tuesday said it wants to make sure it protects its operating margins when making acquisitions, with further consolidation of the sector expected.
Curtis Banks, which in January agreed to acquire Suffolk Life Group Ltd for GBP45 million from Legal & General Group PLC in a move to create the second largest independent SIPP provider in the UK, said it is being "regularly approached" by operators of SIPPs looking for an exit.
The company said its adjusted operating margin stood at 36% in 2015, as it reported higher annual profit and an increase in the number of SIPPs it administers to 39,236 from 22,379.
"Whilst it is one of our objectives to grow the business by acquisition as well as organically we will only consider acquisitions of high quality books of SIPPs that we know can provide at least the level of operating margins we are currently achieving," Executive Chairman Christopher Banks said in a statement.
Pretax profit rose by 31% to GBP4.1 million in 2015, Curtis Banks said. Revenue grew by 69% to GBP17.0 million, boosted by 61% growth in revenue from existing operations to GBP15.4 million and a trebling in revenue from acquisitions to GBP1.6 million. Administrative expenses were up 72% to GBP10.9 million.
The results took included non-recurring costs of GBP1.2 million, mainly related to its initial public offering and float on London's AIM in May 2015, when Curtis Banks raised GBP7.5 million by selling shares at 190 pence. In January, Curtis Banks raised GBP27 million at 320p per share and agreed new debt and revolving credit facilities of GBP23 million to fund its acquisition of Suffolk Life.
Curtis Banks did not pay a final dividend for 2015, having already paid an interim dividend of 3.5p per share in February and guided that it plans on declaring interim and final dividends in 2016. The company reiterated that guidance on Tuesday.
Shares in Curtis Banks were up 2.7% at 382.70 pence on Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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