Chief executive Brendan McManus says there is no timeframe for an IPO

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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 69,97916.3
Costs -57,371 -49,02217
EBITDA 24,035 20,95714.7
Non-recurring costs-2,923 -2,8841.4
  21,112 18,07316.8
Depreciation-1,294 -1,182 
Goodwill -24,013 -23,425 
  -4,195 -6,534 
Interest income156 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 Results2011 2010 
  £’000 £’000%
Turnover  65,113 56,90014.4
Costs -47,153 -40,95215.1
Retail Contribution17,690 15,94812.6
** 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 Results20112010 
Income 15,01911,87626.5
Costs -6,542-4,89733.6
W’sale contribution8,4776,97921.5
** W’sale includes INK, DK, Arnotts, FSJ, W’insure 
** Principal trading entity Ink Underwriting Agencies