Jelf faces £12.5m in payouts to vendors

Consolidator Jelf paid £13.5m of deferred payments to acquired businesses over the 12 months to September 2009, according to its 2008 accounts lodged with Companies House.

The records show that the consolidator also owes a further £12.5m over the next four years. The payments have to be made to the vendors of a clutch of broking businesses bought by Jelf at the top of the economic cycle in 2007.

The total amount owed could be less, however, if the acquired businesses fail to hit performance targets.

This comes at a time when the company’s share price has dropped to an all-time low. See our full coverage on page 14.

Jelf is refusing to comment during its ‘closed period’, which ends when it publishes its full-year accounts in the new year.

But Insurance Times understand that chief executive Alex Alway is currently reviewing the broker’s options. Its private equity backer 3i is believed to be looking for an exit.

Read the full story: Jelf at the crossroads