Chief executive Brendan McManus says there is no timeframe for an IPO
Giles increased its turnover and revenue last year, while the after-tax loss remained flat at £37.4m (2010: £37.1m).
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 14.7% to £24m (2010: £20.9m). Turnover rose 16.3% to £81m (2010: £69m).
The after-tax loss was heavily impacted by a £24m goodwill charge and £21m interest on the loan notes.
The year-on-year interest on the loan notes is rolled up and paid at a later date, likely to be some form of divestment, such as a sale or flotation.
However, Giles actually paid £10.8m interest last year, meaning that its cash related profits were up to £10.3m (2010:£6.2m).
Giles chief executive Brendan McManus said: “We are a strong company, trading really well, with great EBITDA and good growth.”
McManus said the banks and private equity partners Charterhouse were concentrated on the operating earnings, rather than the overall group result.
Giles chief executive Brendan McManus revealed that there were no plans for a flotation.
McManus said: “There is no exit plan. This is a long-term game. For us this is about building on organic growth….The world has changed in the last few years. The traditional view of private equity was that they would turn over investments in three or four years. The reality is that this is not the case now.
“If you look at the Charterhouse investments, many have been there longer than Giles.”
| Group results | 2011 | 2010 | % | ||
|---|---|---|---|---|---|
| £’000 | £’000 | ||||
| Turnover | 81,406 | 69,979 | 16.3 | ||
| Costs | -57,371 | -49,022 | 17 | ||
| EBITDA | 24,035 | 20,957 | 14.7 | ||
| Non-recurring costs | -2,923 | -2,884 | 1.4 | ||
| 21,112 | 18,073 | 16.8 | |||
| Depreciation | -1,294 | -1,182 | |||
| Goodwill | -24,013 | -23,425 | |||
| -4,195 | -6,534 | ||||
| Interest income | 156 | 41 | |||
| Interest charge | -11,738 | -13,038 | |||
| Equity interest accrual | -21,704 | -17,675 | |||
| Tax | 93 | ||||
| After-tax loss | -37,481 | -37,113 | |||
Retail breakdown
The retail business – which includes UK retail, personal lines and the Rossborough business – grew turnover 14.4% to £65.1m (2010: £56.9m).
Costs went up 15.1% to £47.1m (2010: £40.9m). Retail’s total EBITDA contribution was up 12.6% to £17.9m (2010:£15.9m).
| Retail Results | 2011 | 2010 | |||
|---|---|---|---|---|---|
| £’000 | £’000 | % | |||
| Turnover | 65,113 | 56,900 | 14.4 | ||
| Costs | -47,153 | -40,952 | 15.1 | ||
| Retail Contribution | 17,690 | 15,948 | 12.6 | ||
| ** Incorporates UK Retail, personal lines and Rossborough | |||||
| ** Principal trading entity Giles Insurance Brokers Ltd | |||||
Wholesale breakdown
The wholesale business – which includes Ink Underwriting, DK, Arnotts, Lloyd’s broker FSJ and the Westinsure Network – grew income 26.5% to £15.1m (2010: £11.8m). Costs increased 33.6% to £6.5m (2010: £4.9m).
Wholesale’s EBITDA contribution was up 21.5% to £8.4m, compared to £6.9m.
| Wholesale Results | 2011 | 2010 | ||
|---|---|---|---|---|
| £’000 | £’000 | % | ||
| Income | 15,019 | 11,876 | 26.5 | |
| Costs | -6,542 | -4,897 | 33.6 | |
| W’sale contribution | 8,477 | 6,979 | 21.5 | |
| ** W’sale includes INK, DK, Arnotts, FSJ, W’insure | ||||
| ** Principal trading entity Ink Underwriting Agencies | ||||
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