Jelf, the consultancy that provides a broad range of insurance, financial services and employee benefit services to corporate and individual clients, defied the continued economic downturn to produce full time pre-tax profits up from £278,000 to £3.2m in the year to September 30.
The group, which has a major office in Bath and more than 30 branches throughout England and South Wales – mainly added through a spate of acquisitions over recent years – also significantly strengthened its balance sheet with net debt down from £7.3m to £3m.
Chief executive Alex Alway said: "Strong trading during 2011 has enabled the group to increase its income, and margins have been maintained whilst at the same time we have initiated a series of investments aimed at generating future economic growth."
Financial highlights include revenue levels up by 2% to £72.1m, an increase in EBITDAE of 3% to £10.1m while EBITDAE margins were maintained at 14%. Meanwhile earnings per share shot up by 136% from 1.1p to 2.6p.
Non-executive chairman Les Owen said: "Growth has been achieved through a focus on retaining existing clients, by providing clients with a wider range of services, and by winning new clients and new members for our network, The Purple Partnership. Underpinning this is the high quality of our client service as reflected in a strong rating in the Investor in Customers survey. This independent and highly respected award is based solely on feedback from our clients and staff."
Mr Alway said Jelf had concentrated on improving profit levels and increased operating profit by 42% from £3.1m to £4.4m. Jelf continued to generate strong positive cash flow and all deferred consideration payments had been made, he added.
- Repayment of existing loan facilities
- Maximisation of shareholder value
- Availability of Jelf's distributable profits and cash
- Level of retained funds required to finance future growth
- Meeting regulatory capital adequacy requirements.
Mr Alway said: "Our objective is to continue upon our strategy of profitable growth as a leading independent intermediary providing a broad and integrated range of products and services to the UK SME and corporate business sectors and the related private individual market."
