EBITD down to £831,000
CBG Group saw its revenue down to £4.86m for the first half of 2009, from the £5.66m the group reported in the same period.
Earnings before Interest, Taxes and Depreciation also dropped to £831,000 for 2009 from the £1,430,000 in 2008.
Justin Bates, Daniel Stewart analyst stated; “We expect the cost cutting measures undertaken in H1 to yield additional benefits in H2’09 and FY’10. Furthermore, the stabilization in SME failures and the prospect of a hardening insurance market should support an improved H2 and a stronger underlying performance next year.”
Other key features of the results include:
• Trading agreement with Close Premium Finance
• Adjusted diluted earnings per share 2.93p (2008: 6.26p)
• Cash generated by operations £613,000 (2008: £525,000)
• Net assets £12.44m (2008 half year: £10.53m; 2008 full year: £12.28m)
“CBG has responded positively and quickly to the current economic slowdown. The recent period has seen earnings decline in many lines of business and, as a result, we have put in place a significant cost reduction program which has been focused on the reorganization of core functions,” said Laurie Turnbull, chairman of CBG.
“The current stage of the market cycle and broker consolidation is without doubt driving systemic change in the industry. Major consolidators have capitalized on soft market conditions to fully leverage their scale. CBG remains committed to growth and we are confident that focusing management time on business processes.”
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