No sign of a let up in challenging trading, warns CEO Alway
Jelf has said revenue for the first six month to the end of March was just down on last year at £34.9m (£35.0m) and insurance income fell 3%.
But it said using EBITDAE income increased by 20% to £4.1m from £3.5m and its margin was up 20% to 12%.
Jelf said net debt had fallen from £38.8m to £13.6m. It said insurance integration was in “advanced stages” but said more cost-cutting was needed “as economic forecasts remain uncertain”.
Insurance performance
Alex Alway, Group Chief Executive, said: “Despite rating increases in some elements of the market, the mid-to-large corporate market continues to be competitive due to a mixture of competition and the wider economic climate.
“The smaller owner-managed sector, which makes up a substantial element of Jelf clients, has felt the effect of the wider economic climate and these pressures have meant that only marginal growth in client revenues resulted in flat rating coverage for us.
“We anticipate that the challenging trading environment for our Insurance business will continue through 2010 into 2011.
Cost control
“We have focused on tightly managing the cost base whilst looking to build our organic growth capability. The Group has invested in 17 new account executives over the last 12 months, which will improve revenues over time.
“The new business for this area has improved sharply, by 38% from the six month period to 31 March 2009. However, this has been offset by lapses as our client base has suffered due to the wider economic climate.
“The revenues for the insurance business declined by 3% year on year. The insurance business revenues represent 64% of Jelf total income for the six months ended 31 March 2010.
“This insurance business remains positively geared to an improvement in the rating environment.
