Broker also reports record first quarter 2009 results

Towergate has renegotiated its banking covenants with Lloyds TSB.

The broking giant also reported a commission and fee income rise during 2008 of 13% to around £320m, compared to £279m in 2007. EBITDA is anticipated to be marginally ahead of the £109m achieved in 2007.

Towergate said it had record 2009 first quarter new business sales in broking and underwriting divisions.

It said the strong performance in 2009 was down to its decision to invest in a new sales force which has over 80 new account executives and underwriting sales people across the country.

Executive chairman Peter Cullum said: “I am pleased to report a solid performance for 2008 against a backdrop of the most hostile market conditions in my experience, and a highly encouraging start to 2009. While conditions in the market remain tough for our customers, we have continued to invest in sales, service and innovation across the group to deliver on our promises and enable us to maintain our high levels of customer loyalty.

“I am also very pleased to confirm that we have concluded our renewed banking arrangements and have been delighted by the positive and supportive role played by our lead bank Lloyds TSB. The agreement provides further financial stability and ensures we are well placed to continue our strategy of organic growth and value adding acquisitions.”

Lloyds TSB, Bill Cooper, managing director of financial institutions said: "Lloyds TSB is delighted to have been able to lead a successful renewal of “Towergate’s banking arrangements which provides the company with the security it needs to continue to develop its business in these challenging times.”