Insurance broker BMS has struck a deal with its only external shareholder that will see it becoming wholly employee-owned in two years.

BMS has agreed to buy back the shareholding of AHJ Holdings over the next two years, subject to shareholder approval.

To fund further growth and the share buy-back, BMS has secured a £10m, three-year revolving credit facility from Lloyds Bank Corporate Markets.

The news comes as BMS reported a 28% growth in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to £7.1m in 2010 from £5.5m in 2009. Turnover was up 7% to £50.2m in 2010 from £46.9m in 2009.

BMS's profit before tax in 2010 was £1.1m, up strongly from 2009's £89,000 on the back of higher revenues and lower levels of interest payable.

At the end of 2010, BMS had cash of £6.5m with borrowings of £0.8m. During 2010 the deficit in BMS's pension scheme was reduced from £5.6m to £3.6m.

Topics