Henderson in £4.5m loan deal

Independent broking giant Henderson has spent the bulk of its £4.5m loan from Lloyds TSB on two acquisitions, Insurance Times can reveal.

Henderson has spent around £1m on Leeds-based business Denney O’Hara in March this year and £2m on Watford-based UK Credit Insurance Specialists, snapped up in September last year.

Chief executive Joe Henderson still has around £1.5m to play with, in addition to any other funding sources.

Henderson is still eyeing up a deal that could add around 40% growth to the business, propelling the provincial broker to more than £200 in gross written premium.

The broker moved its day-to-day banking relationship to the Hull office of Lloyds TSB Corporate Markets at the end of last year. The Lloyd's money consists of a term loan and working capital funding.

Henderson said: “Until last year, we had been with the same bank since the business was setup 23 years ago. However, given the speed at which the company is growing and the number of potential acquisitions that were on our radar, we felt the time was right to consider a bank that could support our needs in the right timescales.

“Before we even considered changing banks, we had maintained regular dialogue with the Lloyds TSB Corporate Markets team, in particular Jamie Allison, Regional Business development director, and relationship director Richard Townsend. Even though we were not one of his customers, Richard built-up an in-depth understanding of our organisation, and the market in which we operate.

"That willingness really impressed us and certainly boosted our confidence in Lloyds TSB. So, in the end, it was an easy choice. The fact that Richard and his team are based on our doorstep was an added bonus.”

Richard Townsend, relationship director at Lloyds TSB Corporate Markets in south & east Yorkshire, said: “Henderson Insurance is a well-run business that is very well-respected in the insurance market. Joe and his management team have built up the company to become one of the leading lights of the Yorkshire business community and we are delighted to welcome them to Lloyds TSB Corporate Markets and to have the opportunity to fund and support their growth and acquisition plans.

“Henderson’s acquisitions prove that the recovery is certainly starting to bring more and more exciting growth opportunities for those businesses with strong management teams. It also proves that when these opportunities arise, Lloyds TSB will not shy away from backing its customers’ ambitions with funding, knowledge and expertise.”

Henderson added: “We have ambitious plans to grow the business even further and the acquisitions of Denny O’Hara and UK Credit Insurance Specialists is just part of that process. Working with a trusted partner like Lloyds TSB has definitely given us the conviction to see those plans through.”