The high street insurance broker purchased Endsleigh and its subsidiaries for £17.4m including fees

High street insurer A-Plan Group spent £8.2m in the year to 28 February 2019 completing an organisational redesign of personal insurance business Endsleigh, which it acquired in March 2018.

Endsleigh started its restructure in 2017, prior to joining A-Plan Group – this included disposing of and closing loss-making and non-core activities, while investing in modern policy administration systems and improved digital quote and buy customer journeys.

In the year to February 2019, A-Plan Group incurred a total £9.1m in restructuring costs, as stated in its group of companies’ accounts, published on 28 November - £8.2m of this spend is attributed to the Endsleigh project, comprising of redundancy costs, losses from discontinued activities and one-off legal and professional costs.

The £9.1m restructuring bill is not reflected in A-Plan Group’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) – this showed a 10% increase between 2018 and 2019, rising from £32.7m to £35.9m.

Endsleigh’s restructuring programme planned for £14.2m of future liabilities, although A-Plan did gain £5.8m in intangible assets, such as brand value and customer relationships, as a result of the acquisition.

A-Plan Group purchased Endsleigh for £17.4m, including fees, through Trafalgar Bidco Limited. This was followed with the acquisition of software organisation  – Made By Sauce, in October 2018 for £4.5m; £1m of this is deferred for one year and contingent upon performance.

Business overview

A-Plan Group reported a £161.3m turnover from operating subsidiaries in the year to 28 February 2019, an improvement of 36% on the £119m that was reported last year. The organisation attributes this uplift solely to the purchase of Endsleigh, on top of organic growth.

Operating losses for the group amounted to £9.7m for the reporting period, against a £26.3m cash injection. Losses for the financial year to date are £37.9m.

A-Plan Group is the parent organisation of A-Plan Holdings.