Cobra's profits up 14%

Cobra Holdings said it was ‘well-placed to ride out the current market conditions’ after posting a 14% increase in pre-tax profits to £390,000.

Revenues increased 2.1% to £11.98m for the six months to September 30, compared to the same period last year.

The strongest performer in the company was Cobra Network with revenues up 18%, followed by Cobra London Markets at 15% and Cobra Underwriting at 10%.

Cobra, led by chairman Peter Robinson and chief executive Steve Burrows, said it made no acquisitions during the period, instead focusing on operating efficiencies.

A company statement said: “As well as focusing on customer service, the group continued to cultivate relationships with our insurance panel members ensuring that we maintained our Network with resultant increased commissions and enhanced business terms. The group's strength remains the breadth of services available, including access to Lloyd's and a number of specialist insurers

“With the financial services industry under the spotlight as never before and the Financial Services Authority insisting that the momentum for regulatory reform must be maintained, we are well placed to deal with any significant changes in regulation and supervision due to our focus in the group on compliance and training.

“Most observers agree that premium rates need to rise, and indeed some recovery has been seen in some sectors. However, the timing of rate rises is very difficult to predict. The board believes that the group is well placed to ride out the current market conditions and emerge strongly as trading conditions improve in the short to medium term.”

Highlights

Total Revenue increased by 2.1% to £11.98M

Adjusted EBITDA increased by 2.8% to £1.77M

Profit before tax increased by 14.0% to £390K

Profit after tax increased by 27.1% to £230K

Financing costs of £777K include non-cash fair value charges of £172K on deferred consideration for acquisitions, loan notes and convertible debt

Cash at bank £939K

COBRA Network revenues increased by 18%

COBRA Underwriting (CUA) revenues increased by 10%

COBRA London Markets (CLM) revenues increased by 15%