EBIDTA increases from £112.4m to £117.7m; Cullum says peformance was 'creditable'

Towergate Partnership’s losses rose 48% from £18.8m to £28m in 2009, latest accounts reveal.

But the company’s earnings, before, interest, tax, depreciation and amortisation (EBIDTA) – the consolidators’ preferred measurement – increased from £112.4m in 2008 to £117.7m last year.

Fees and commissions increased from £318.1m to £323.3m. Group operating profit declined from £42.2m to £35m.

The company took on £83m more in debt, rising from £397m to £480m and interest payments increased from £45m to £52.9m.

Towergate’s overall loss includes goodwill amortisation costs from the insurance group’s acquisitions, such as £14m for Paymentshield acquisition.

The firm paid £12m corporation tax on taxable profit of £40m.

Towergate Chairman Peter Cullum said the company had bucked the economic downturn, describing the company’s performance as ‘creditable’.

Cullum said: “Our resilience in these difficult conditions derives largely from our innovation, proven business model and the way we manage our company.”

Yesterday, Towergate confirmed it had delayed its plans to raise 665m from investors for four to six weeks.

For more, read next week's issue of Insurance Times.