CBG broker profit hits 23.6%

Broker group CBG announced H1 results showing an 11.6% drop in revenue, partly due to offloading non-core personal lines businesses, and said its broker profit margin had risen from an adjusted 16.4% to 23.6%.

Total revenue fell by £538,000 (11.6%). The disposal of unconnected personal lines business accounted for £157,000 of this. The broking profit margin to 23.6% translated into a 34.1% increase in adjusted EBITDA to £798,000 (2009: £595,000 as restated).

H1 financial highlights £000s (2009 in brackets)

• Revenue 4,089 (4,627)
• Operating profit before charges 798 (595)
• Operating profit/loss 260 (-6)
• Profit/los before tax 228 (-65)
• Profit/loss – shareholders/continuing operations 163 (-50)

Robin Slinger, chairman said: "The strategic disposal of non-core activities has impacted adversely upon our comparative revenues. This action however, alongside a programme of cost reduction, ensured we successfully reduced the level of risk within the business.

“We have a clear, focused strategy and our performance, together with the decisions we have taken over the last two years to strengthen our balance sheet, has placed us in a strong financial position and provided a solid foundation for future growth."