Jelf share price jumps 20% as its debts fall from £13.6m to £8m
Jelf has slashed debt down to just £8m, triggering a 20% rise in share price.
Jelf's last reported net debt was £13.6m. The Bristol-based consolidator has reduced its debt signiifcanlty from £30.6m a year ago.
Jelf's share price on the alternative investment market has risen this week from 48p to 58p.
Earlier this year, Jelf received an extension of its banking facilities and capital from insitutional investors, including US private equity firm Cap Z. Some of that investment has been used to pay down debts.
Jelf said in a trading statement: "The group has traded well during the period with results expected to be in line with market expectations.
"Despite difficult economic conditions and a soft and highly competitive market in commercial insurance, turnover has held up well with EBITDAE (earnings before interest, tax, depreciation, amortisation) in line with expectations. Net debt has been reduced to less than £8m (including deferred consideration at less than £1m).
"The board believes that by focusing on client retention, new business and cost management the Group is returning to growth whist remaining cautious about the economic outlook."
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