JLF.L Regulatory News (JLF)

19 May 2005 07:00

Jelf Group PLC19 May 2005 Jelf Group plcInterim Results for the six months ended 31 March 2005 Jelf Group plc, an established corporate intermediary, today announces itsinterim results for the six months ended 31 March 2005. The highlights are: • Turnover up 20% to £4.9m (2004: £4.1m)• EBITDA up 24% to £0.47m (2004: £0.38m)• Operating margins increased to 8.5% from 7.8% The Group also today announced the: • Acquisition of the South West commercial insurance operations of R.K.Harrison for a maximum consideration of £0.98m Commenting on the results, Chairman of Jelf Group plc, Chris Jelf, said: "The Group will continue with its strategy of strengthening its market positionby acquiring and consolidating businesses along with extracting value throughorganic growth activities. "The challenges facing the Group from within our markets and the regulatoryenvironment will demand high levels of professionalism from all. "The results for the first half of our financial year, whilst pleasing, onlyserve to establish new benchmarks for the Group and give us confidence that 2005is going to be a year of significant progress." For further information: Emma Kane/Sanna Lehtinen Tel: 020 7955 1410Redleaf Communications Mob: 07876 338339 • Alex Alway and John Harding are contactable on 19th May via Redleaf Communications on the numbers shown above. Notes to Editors: • Jelf Group was founded by Chris Jelf in 1989. Today, the Jelf Group operates from a number of premises in the West Country and Wales and offers an extensive range of corporate services;• The Group advises over 4,000 corporate clients across a range of disciplines. These clients cover the spectrum from significant public companies to small owner managed businesses. Core Jelf clients are medium sized owner-managed businesses, typically employing between one to 50 staff, with a turnover of up to £10 million;• The Group has developed a corporate support infrastructure that has enabled it to make a number of acquisitions over the last four years. These acquisitions span all core areas of the Group's business and have been made to either supplement existing operations or acquire a corporate client base that can be utilised by the enlarged Group. The significant acquisitions were as follows: o 2000 - IFM - IFA based in Bristol - relocated to Yate, Bristol; o 2001 - Corporate Healthcare Management - Healthcare partnership; o 2002 - Spring Gate Insurance - Purchase of a book of commercial insurance; o 2003 - Richard Levinge Associates - IFA business based in Cheltenham; o 2003 - SLF Insurance (Services) Ltd - Purchase of a book of commercial insurance; o 2003 - Kallender Walwyn Ltd - Purchase of commercial insurance business based in Trowbridge; and o 2003 - Pontin and Stein - Corporate Healthcare partnership. o 2004 - Managed Healthcare Ltd - acquisition of independent Somerset based brokerage specialising in healthcare and private medical insurance o 2005 - Arnold Wills - acquisition of independent financial advisor based in Somerset• Further information is available on Jelf at the Company's website: www.jelfgroup.com. Chairman's Statement I am delighted to be able to report that the Group has made a strong start toits trading year in what could be described as a challenging trading environmentacross all of its core markets. I am particularly pleased that we have continuedto develop a Group-wide culture of referring to colleagues when clients requirenew services that we are able to provide. This has underpinned strong organicgrowth across the Group for the first half of this year. The highlights of the financial year so far include: • Overall performance in line with plans• Strong operating cash-flows• The acquisition and integration of the client bank of Managed Healthcare Ltd• The acquisition and integration of staff, management and clients of A Wills & Co Ltd• The recruitment and establishment of a whole team of Insurance executives for our Cardiff operations These highlights together with the acquisition of the South West commercialinsurance operations of R.K.Harrison, announced today, are in line with ourdeclared strategy of acting as a consolidator within our core markets. Financial Results In the six-month period ending 31st March 2005, the Group increased its turnoverby 20% to £4.9m (2004: £4.1m) and achieved earnings before interest, tax,depreciation and amortisation (EBITDA) of £0.47m (2004: £0.38m). This representsa 24% increase over the same period in 2003/04. Operating margins prior to charging goodwill continue to improve, increasing to8.5% (2004: 7.8%) Operations The Group is working hard to integrate fully the teams it has acquired andcontinues to invest in its IT infrastructure to ensure productivity gains aremaximised. One example of this is the establishment of a Group wide intranet tofacilitate communications. Business development We have been able to extract value from a number of initiatives so far this yearalong with establishing others that will produce results in later periodsincluding: • Lead generation Our Group-wide lead generation programme has produced a number of newopportunities with both existing clients and prospects. One example of this isthe 200 business related individuals who have requested advice by joining ourNew Dimension service since its start up last year. • Commercial Finance In response to client demand, we have established a separate Commercial financebroking arm under the management of Colin Hall-Tomkin, previously a seniorcorporate banker with Barclays and Bank of Ireland, who we are delighted towelcome to the Group. This new operation will focus on providing independentprofessional advice on how and where our corporate clients should source assetfinance, factoring and commercial loan facilities. • Acquisitions The Group continues to explore and develop a pipeline of acquisition andrecruitment opportunities. Recent changes in the regulatory environment forInsurance broking have increased the number of acquisition opportunities in thismarket Regulation The impending introduction, in the 2nd Quarter of 2005, of new regulation thatwill enable de-polarisation of the IFA sector has allowed the Group tore-iterate its independence and desire to provide whole of market advise to ourclient and professional partners. Appointment of a Non Executive Director In December 2004, I was delighted to announce the appointment of David Walker asthe Group's first Non Executive Director. David spent many years working in theCity with Credit Suisse First Boston and brings considerable experience as botha strategist and successful businessman, to the Board. He chairs both the Auditand Remuneration Board committees People The performance of the Group reflects the quality and professionalism of all itsemployees. The staff and management that make up the Jelf Group, along withtheir commitment to our clients, remain our biggest asset. The Future The Group will continue with its strategy of strengthening its market positionby acquiring and consolidating businesses along with extracting value throughorganic growth activities. The challenges facing the Group from within our markets and the regulatoryenvironment will demand high levels of professionalism from all. The results for the first half of our financial year, whilst pleasing, onlyserve to establish new benchmarks for the Group and give us confidence that 2005is going to be a year of significant progress. Christopher JelfGroup Chairman19th May 2005 Consolidated profit and loss accountFor the six months ended 31 March 2005 Unaudited Unaudited Audited Six months Six months Year ended ended ended 31 March 2005 31 March 2004 30 September 2004 £'000 £'000 £'000TURNOVER 4,908 4,074 8,461Cost of sales (247) (201) (372) ------ ------ ------GROSS PROFIT 4,663 3,872 8,089Administrative expenses (4,378) (3,665) (7,533) ------ ------ ------OPERATING PROFIT 283 207 556Income from otherinvestments 0 5 7Interest receivable 49 6 10Interest payable (27) (19) (50) ------ ------ ------PROFIT ON ORDINARYACTIVITIES BEFORE TAXATION 305 199 523TAXATION ON PROFIT ONORDINARY ACTIVITIES (116) (76) (199) ------ ------ ------PROFIT ON ORDINARYACTIVITIES AFTER TAXATION 189 123 324DIVIDENDS - - - ------ ------ ------RETAINED PROFIT FOR THEFINANCIAL PERIOD 189 123 324 ====== ====== ====== EBITDA 472 375 875 Consolidated Balance SheetAs at 31 March 20005 Unaudited Audited 31 March 2005 30 September 2004 £'000 £'000FIXED ASSETSIntangible fixed assets 2,216 1,736Tangible fixed assets 485 414Investments 35 35 ------ ------ 2,736 2,185CURRENT ASSETSDebtors 3,594 3,178Cash at bank & in hand 3,095 1,401 ------- ------- 6,689 4,579CREDITORS: amounts falling due within oneyear (4,412) (3,893) ------- -------NET CURRENT ASSETS 2,277 686 ------ ------TOTAL ASSETS LESS CURRENT LIABILITIES 5,013 2,871CREDITORS: amounts falling due after morethan one year (926) (903)PROVISIONS FOR LIABILITIES AND CHARGES (115) (98) ------ ------NET ASSETS 3,972 1,870 ====== ====== CAPITAL AND RESERVESCalled up share capital 134 103Share premium account 2893 1,011Capital reserve 13 13Capital redemption reserve 1 1Profit and loss account 931 742 ------ ------SHAREHOLDERS' FUNDS - all equity 3,972 1,870 ====== ====== Consolidated Cash FlowFor the six months ended 31 March 2005 Unaudited Audited Six months Year ended ended 30 September 31 March 2005 2004 £'000 £'000Net cash inflow / (outflow) from operatingactivities 49 854Returns on investment and servicing offinance 22 (33)Taxation 0 (179)Capital expenditure and financialinvestment (106) (129)Acquisitions and disposals (100) (373) ------ ------Cash inflow / (outflow) before use ofliquid resources and financing (135) 140Financing(Decrease) / increase in debt (85) (4)Issue of shares 1,914 ------ ------Increase / (decrease) in cash in theperiod 1,694 136 ====== ====== This information is provided by RNS The company news service from the London Stock Exchange