News blog

CBG Group

  • BY: Andrew Hore |
  • POSTED: 14/09/2010 |

Commercial insurance broker CBG Group has reported improved underlying profit even though revenues were lower in the first half of 2010.

Cost cutting has helped offset the decline in revenues from £4.63m to £4.09m. All of the decline was in the insurance broking division with financial services revenues holding up. There has been no hardening of insurance rates and this does not look like changing in the short-term.

A new management structure should make it easier to win new business and help to retain existing business. Costs could fall further but some of the benefits will be reinvested in parts of the business.

Underlying pre-tax profit improved from £39,000 to £332,000.

Net debt was £666,000 at the end of June 2010. There is no more deferred consideration payable so the cash generated from operations can go towards paying off borrowings. CBG should reach a net cash position next year.

The cash could go on acquisitions but CBG is not seeing anything that it wants to buy at the moment.

House broker Daniel Stewart has cut its 2010 revenue forecast from £8.8m to £8.1m. That means that the profit forecast has been reduced from £1.5m to £1.1m. The dividend is expected to be maintained at 0.72p a share.

At 29.5p a share, CBG is valued at £4.68m. The shares are trading on less than six times forecast 2010 earnings.

Download the September edition of AIM Journal at http://www.hubinvest.com/AIMPDFSeptember2010_12.pdf

© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds