Weekly briefing: 3-9 June - When one man's loss is another's gain

There was welcome news from the Serious Fraud Office this week, with our exclusive report that director Richard Alderman will not take action against firms that make facilitation payments overseas in breach of the Bribery Act, so long as they are working towards stamping it out over a period of time.

The Bribery Act, which came into force last week, has been a source of considerable worry and confusion for brokers operating in those overseas territories where under-the-table payments are considered the norm. According to the letter of the law, these brokers are now acting illegally. But Alderman has signalled his intention to take a pragmatic approach. His message is simple: the SFO is not the enemy, it is interested in serious wrongdoers, and it supports British business. You can’t say fairer than that.

Jelf on the up

Jelf’s fortunes have really turned around. A couple of years ago, the listed consolidator seemed on shaky ground, with a stock price in the doldrums and many market observers expecting it to be snapped up at any moment. Today, things couldn’t be more different. The broker’s latest results show operating profit up by 49% year-on-year, to £1.5m for the six months to March. That revenues have remained steady at £35m in the same period suggests that the business has taken successful action to increase its profit margin.

So congratulations to Alex Alway, who stuck it out through the hard times. He’s told of big plans for the business, including a return to the acquisition trail. With Towergate also planning some deals and money burning a hole in Giles’ pockets, it’s surprising that there haven’t been more acquisitions this year. No doubt mismatched expectations in price are behind the delays.

The Towergate tale

Towergate has of course dominated this week, online and print, with its triumphant appointment of Mark Hodges as chief executive, replacing Andy Homer from 1 October. It is excellent news for the consolidator, and signals a new stage in its development and a big step towards an IPO. The news is less good for Hodges’ former employer, Aviva, and despite its rapid appointment to Trevor Matthews to fill the gap, further change can be expected. There are three months to wait before Hodges takes the reins and starts to make an impact – in the meantime, read Saxon East’s analysis of why he took the job.

Motoring ahead

Markerstudy has just celebrated its tenth birthday – and the Gibraltar-based motor insurer shows no signs of slowing down. Having acquired Auto Windscreens earlier this year, and Zenith in 2010, it has now snapped up Blagrove Insurance Brokerss, a commercial motor broker. Markerstudy already has a sizeable distribution arm, though this is its first foray into commercial motor and a strong signal of chief executive Kevin Spencer’s unbridled ambition.

Computer says no

Lloyd’s and the London market are not well known for their technological innovation. As Ben Dyson discovers in this week’s investigation, the Exchange programme has had a muted start and the vast bulk of business is still done face to face. As one of the market’s main selling points, that may be no bad thing – but do the cumbersome, slow processes that dog the market put it at a competitive disadvantage internationally?