Heath Lambert updates on trading

Heath Lambert Limited today announced key trading highlights ahead of its results for the year ended 31 December 2007:

• The Group generated recurring UK operating revenue of £113.1 million.
• Earnings before interest, tax, depreciation and amortisation (EBITDA) is up six per cent from the exceptional performance in 2006, to approximately £18.5 million.
• Heath Lambert’s UK Retail, Personal Lines and Consulting/Employee Benefits divisions contributed around 85 per cent of the Group’s income.
• The Group saw notable year on year income growth in core areas of its operations. Highlights include, Heath Lambert’s National network saw a five per cent growth in its mid-market operations as a whole, with double digit growth from its operations in Leeds, Sheffield and Newcastle; Retail Personal Lines income grew by 13 per cent, which was driven by new schemes and e-commerce growth; and the Heath Lambert Consulting/Employee Benefits Division generated a seven per cent growth in income.
• The Group’s specialist retail units also showed income growth with the Transportation Division seeing a nine per cent increase, Credit and Surety seven per cent and UK Construction five per cent.
• This progress was offset by a reduction in the international wholesale portfolio of around 15 per cent, which was driven by soft market conditions and the fluctuations in the US dollar exchange rates.
• The year saw Heath Lambert build on its client base retaining key accounts and through new business development, with the addition of organisations and companies across a diverse range of industries and sectors. Although new business levels were down on those achieved in 2006, client retention and organic growth were significantly enhanced aided by the Group-wide service excellence programme.

Adrian Colosso, Chief Executive Officer of Heath Lambert, said: “2007 continued to present challenges to the entire insurance industry. There has been ongoing consolidation in the industry and significant turmoil in the financial markets. So we are delighted to have made such steady and consistent progress during the year and to have improved the overall corporate performance of the Group. We continue to work as a team; developing new business opportunities, sharing the knowledge and expertise we have in all of our divisions to deliver service and solution excellence to our existing, new and prospective clients and partners. This is testament to the skill and professionalism of all our teams in our offices across the country.

“Going forward our aim is to continue to invest in our people, our services, our solutions, and operations to further strengthen our market leading position in the UK. In fact this year will see us focus on strengthening our position in the UK and moving away from being London centric. We will be looking to expand our regional presence through the opening of new offices, expanding our existing offices and through the ongoing recruitment of specialists to build on our already strong set of skills and knowledge. We are determined to build on our success and feel optimistic and confident about the future.”