Allanfield on acquisition trail as profits climb 17%

Real estate broker Allanfield is on the hunt for acquisitions after a 16.8% increase in underlying profits.

The broker increased operating profits before amortisation and exceptional items to £1.04m for the six months of 2012, compared to £893,855 in the same period last year.

Net revenue also jumped 33.5%, to £2.1m (H1 2011: £1.6m).

Chairman John Dembitz said: “We are continuing to grow our business both organically and through acquisitions. As such, we are actively looking for acquisition opportunities that meet the criteria of being real estate specialists; insurance brokers, insurance divisions of property managers, broking teams and individuals.”

In August last year, Allanfield acquired Commercial Property Insurance Consultants Ltd.

The accounts show a £613,264 amortisation of intangible assets and exceptional items. Including this, the operating profit would have roughly halved to £428,252. The accounts did not explain the amortisation.

The business has £4m shareholders’ equity and long-term borrowings of £2.2m.

Its business model is based around a select number of large clients and offering premium service. Notable achievements in 2012 included helping establish a real estate terrorism facility as an alternative to Pool Re.

The firm was floated on AlM in August last year.