Group MD Mike Askew's new senior team comes as broker posts 34.1% rise in operating profit
Since assuming additional responsibility for running broker CBG Group's insurance operations following the departure of Stephen Darcy in July this year, group managing director Mike Askew has implemented a new management structure in a bid to provide a better service to customers.
The change has involved establishing an executive management team, which includes a business development manager, operations director and client services director. The new structure is designed to ensure CBG's various divisions - financial services, insurance broking, wealth management and employee benefits - meet regularly and work together as a unit.
"We are trying to focus more on clients and client retention, and making sure account executives have a direct line manager and more time out with the clients," group finance director Martyn Hughes says. "Everybody has clearly defined roles, and responsibilities and accountability for their own bit of the business."
Rather than hiring new people to the executive management team, CBG has given more defined roles to existing employees. However, while not on a recruitment drive, the company is hiring. "We do need more people doing day-to-day broking," Hughes says, "so we will be recruiting and looking out for new people."
The new management structure came into play as the broking group's first-half 2010 results were announced. Revenue fell to £4.09m compared with £4.63m in the same period in 2009, though operating profit rose 34.1% to £798,000, with a profit margin of 23.6%.
Managing director Mike Askew says that efficiencies made to the business, combined with organic growth, have produced an outstanding broker profit margin. “Most of our peers will be envious that we have achieved a mid-20s broking profit margin," he says. "We have managed the business prudently, strengthening the balance sheet, and reducing the debt position.”
Askew reveals that CBG paid down £945,000 in deferred considerations to acquired companies in the first half of the year. As to whether further buy-outs are on the cards, he says: “We are able to do acquisitions, but the opportunities at the moment just do not tick the right boxes.”
