Hyperion reduces losses as it makes 'strong progress' on RKH

Broking Group Hyperion made a loss of £38m in the year to September 2016 as a result of the integration and restructuring costs related to the RK Harrison acquisition and other transactions.

However, this is an improvement on the £81.4m loss it reported the previous year.

But the company reported an 82% surge in underlying profitability. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to £103m from £57m in 2015.

Revenue increased 45% to £434m from £299m in 2015, while organic growth was up 8% (2015: 5%).

The EBITDA margin also increased to 24% (2015: 19%).

The costs related to the structure, integration and related financing profile of RKH the biggest acquisition Hyperion has undertaken, which completed in April 2015, and other transactions.

The company also paid out £76m (2015: £30m) in deferred consideration payable to RKH employee shareholders and £38m (2015: £23m) for depreciation and amortisation.

Group chief executive David Howden (pictured) said during the 12 month period the business was focused on the integration and consolidation of the business.

From 1 October 2016, the group also fully aligned its management structure to three pillars: Howden, being retail broking; RKH Group, being specialty and reinsurance broking; and DUAL, the Group’s MGA operations.

Core support services are delivered through a single consolidated service company, Hyperion Services.

Howden added: “The effort to shape, support and position the significantly larger Hyperion Group for the future has been a key focus for the Group in 2016.

“We are now structured, with our three arms of Howden, RKH and DUAL, to harness the expertise and agility of the group to deliver the best for our clients, partners, employees and shareholders, and to take Hyperion to the next level.

“We are well positioned in the face of external factors and our differentiated platform and employee ownership model make Hyperion a unique place to work.”