Acquisition and listing costs push Allanfield into loss

Real-estate insurance broker Allanfield Group made a loss of £476,412 in 2011, compared with a profit of £508,244 in 2010.

While revenues were up 50.7% to £2.3m (2010: £1.5m) these were dwarfed by £2.6m of administrative expenses, up sharply from their 2010 level of £797,176.

The main cause of the loss was 760,312 of one-off expenses. These included listing costs of £218,926 related to the company’s flotation on the London Stock Exchange’s Alternative Investment Market on 18 August 2011, £303,697 in acquisition costs related to its purchase of Industrial & Commercial Property Insurance Consultants (ICP), and other non-recurring legal and professional costs of £237,689.

The company was also hit by £459,948 of amortisation charges.

However, earnings before interest, tax, depreciation, amortisation and exceptional items increased 19.8% to £884,044 (2010: £738,096).

Allanfield chairman John Dembitz said: “The year ended 31 December 2011 was a game-changing year in the life of the company and included its admission to AIM. The company also made its first acquisition, ICP, which has been successfully integrated into the group and is operating off a single database platform.”

He added: “Allanfield is focused on providing our clients with great service, innovative solutions and in-house claims management. Despite the many ill-winds in the global economic environment, we look forward to the challenges and opportunities for continued growth and development of the business through 2012.”