On release of the group’s year-end financial results, chief executive David Howden said he was comfortable with the increasing debt coverage ratio
Hyperion spent £145m on acquisitions and investments for the year ending September 2018.
This figure accounted for investments in ACP, Synkronos Italia, International Planning Group, Apollo Partners LLP, and Grupo Ordas.
Released with the annual results for the group, Hyperion chief executive David Howden also revealed to Insurance Times that the debt to EBITDA ratio had slightly increased from 3.8 to 4.3.
Howden said he is unconcerned by a rating of B2 from S&P and Moody’s and said this is a coverage ratio the group is comfortable with, and compares favourably against competitors.
Howden said: “Ever since we first entered the debt market we have consistently stated what our comfortable leverage ratio is, and that is between 4 and 5.
“We really don’t have the appetite to go up to high leverage levels. Much less than three, and we don’t believe we’d be operating very efficiently as a business.”
Hyperion Group full year results to September 2018
He said the figure often drifted over the financial year relative to if the group had just made an acquisition.
But he said the group would continue to strive to keep with that region.
Speaking on the same call, group chief financial officer Richard Houghton added: “The real proof point is the cost of that debt. We are getting very competitive rates and good support.
“Given that the figures produced by the group are so strong it makes sense to me that we’ve been about to approach our equity providers and debt providers to support the strategy that we want to pursue, which includes £145m of acquisitions in the financial year.”
The annual results revealed organic growth of 6% overall for the group, with group revenue reported at £620m – an increase of 16% on the previous year.
All three divisions grew, although the overall organic growth was down on 8.3% the previous year.
Adjusted consolidated EBITDA increased by 19% to £181m, while the EBITDA margin was slightly up from 28% to 29%.