Gallagher well-positioned for ‘strong finish’ to year, says chief executive
Arthur J Gallagher’s broking division made a profit before tax of $427.3m (£349.9m) in the first nine months of 2016, up 26% on the $340.1m it made in the same period last year.
Earnings before interest, tax, depreciation, amortisation and change in acquisition earn-out payables was up 17% to $674.4m (nine months 2015: $213.1m).
Gallagher nine month key figures
|Nine months 2016||Nine months 2015||change (%)|
|Organic revenue ($m)||2453.5||2369.5||3.5|
|Profit before tax ($m)||427.3||340.1||25.6|
|Acquisition integration expense ($m)||35.5||66.5||-46.6|
|Esttimated acquired revenue ($m)||97.8||176.9||-44.7|
Gallagher’s broking revenues were up 7% to $2.64bn (nine months 2015: $2.47bn) and organic growth was 3.6%.
The entire group’s profit before tax, which factors in the risk management unit as well as losses from Gallagher’s corporate centre, rose 8.7% to $288.1m (nine months 2015: $265.1m).
Revenues were up 3.8% to $4.21bn (nine months 2015: $4.06bn).
Gallagher chief executive Patrick Gallagher said: “Around the world, we are successfully executing our strategies – we are growing organically, expanding through M&A, making strides in productivity and quality and our culture is thriving.
“We are well positioned for a strong finish to 2016 and another excellent year in 2017.”
Gallagher made 28 acquisitions in the first nine months of 2016, compared with 27 in the same period last year. But the estimated acquired revenue from these deals was far smaller this year at $97.8m (nine months 2016: $176.9m).
Integrating acquisitions cost Gallagher $35.5m in the first nine months of 2016, down 47% on the $66.5m it spent on integration in the same period last year.