Up-for-sale Giles grows turnover 9%

Giles grew its turnover 9% to £88.7m last year (2011: £81.4m), boosted by its acquisition of Manchester-based broker CBG.

Earnings before interest, depreciation, amortisation and non-recurring costs (EBITDA) grew 0.7% to £24.7m (2011: £24m).

Giles chief executive Brendan McManus said it was ‘a strong set of financial results during a year where the tough economic environment has prevailed in our sector.’

The results, released by Giles, did not include any figures on organic growth or the overall pre-tax profit or losses, which will be affected by interest payments on its £200m-plus debt.

The improving results are unlikely to persuade private equity owner Chaterhouse to keep its two-thirds stake in the business.

The private equity giant has appointed Credit Suisse, as reported by Insurance Times, to conduct a strategic review of the business in preparation for a sale.

While McManus did not comment on the sale process, he was keen to stress the consolidator’s credentials.

He said: “We are pleased to have delivered a strong set of financial results during a year where the tough economic environment has prevailed in our sector.

“Since joining Giles last April a number of top quality senior managers have also joined the group and together we have progressed new initiatives across both our retail and wholesale businesses which will deliver growth for the business in future years.

“Our focus remains building on our stable, vertically integrated platform, hiring great people and teams, whilst maintaining an entrepreneurial culture.

“We are pleased to have delivered a strong top line performance and profit in a difficult climate and continue to make good progress in our aim to continue to drive organic growth and continue to develop Giles as a leading broker with exceptional regional footprint; sector focus and distribution.”