Lloyd’s broker's PBTA drops 15% to £3.3m over past 12 months.
THB Group had a strong six months, putting it on the path to recovery after a tough year that saw its profits drop 40% to £1.45m.
The Lloyd’s broker, which recently changed its accounting period, reported its six-month results this week. It enjoyed a 30% increase in turnover (fees and commissions) to £19.4m in the six months to 30 April 2008, up 12% over the full year.
Profit before tax, amortisation and impairment of intangibles and goodwill from continuing operations was up 34% to £2.8m in its interim results, but down 15% for the full year at £3.3m.
Rob Wilkinson, THB Group finance director, called the results a “game of two halves”. He said: “The first half was poor, but the second half was a lot stronger.”
In January, THB completed the acquisition of PWS in an attempt to launch the business into global markets.
Wilkinson said the acquisition had a modest impact on the group’s results but it was now concentrating on integrating and restructuring the business, with the full benefits of the acquisition not expected to show until 2009.
“There was relatively little front end overlap,” said Wilkinson. “We are restructuring largely in the back office area and we see that being a year away.”
Frank Murphy, THB chief executive, added: “We believe that the right thing to do is get everyone under the same roof as quickly as possible.”
He said the Lloyd’s market had shown some surprise at the group’s results. “The market was surprised that we held up a lot better than our competitors,” he said.
“With pressure on rates across the board I think the market is surprised we done as well as we had.”
In his statement, THB chairman Clive Williams said the company was in discussion with a number of specialist teams as it looked to build on the success of its underwriting operation, Unicorn Underwriting, launched in January.
“We expect this independent operation to become an increasingly important part of the group’s portfolio,” he said.