Brightside reports ‘robust’ five months as sales rise 9.3%

Brightside said its trading for the first five months of 2012 has been “robust” and “remains in line with current market expectations”.

The broker said in a trading update that compared with the same five month period in 2011, like-for-like sale grew 9.3% to £37.1m.

In addition, deferred interest relating to its book of premium finance business increased by £1m to £4.8m. This balance will be released to the income statement over the following 11 months as the associated premium finance loans are repaid.

Brightside also reported that after suffering a lack of capacity in the second half of 2011, its eCar business has continued to develop and now has sufficient capacity in place.

Total annual policy sales at eCar for the first five months of 2012 increased 10.4% to 64,419 “in what remains a highly competitive market place,” Brightside said.

ECar’s panel of insurers includes Aviva, AXA, Groupama, Southern Rock and Ageas.

The company added that demand for its premium finance and medical reporting products continues to grow, complementing its broking income.

In February  Brightside acquired its head office building near Bristol for £3m. The purchase of the building was undertaken due to the attractive yield offered.

“Overall trading in the year to date is in line with expectations and the board is optimistic for the remainder of the year,” new chief executive Martyn Holman said in a statement.

The trading update follows hot on the heels of the departure of previous chief executive Arron Banks. Banks is now plotting to delist Brightside, which is currently listed on AIM, with private equity backing.