Jelf revenues rise by 1.9%

Jelf has announced revenues of £35.9m for the six months to end of March, up 1.9% on the same period last year, and an operating profit of £1.8m (2012: £1.6m).

Over the past six months, Jelf has negotiated a new banking facility with Barclays that sees its net debt rise to £1.4m (2012: £1.1m). The new debt has been used to pay down existing debt and for future investment, and has been agreed at an interest rate that is “less than half” the previous rate.

The insurance arm of the group saw a 0.7% rise in revenues to £23.4m (2012: £23.3m) in the past six months and represent 65% of group income over the period (2012: 66%). Earnings before interest, tax, depreciation, amortisation and exceptional items (EBITDAE) grew by 18.5% to £3.4m (2012: £2.9m).

The insurance division is expecting premium rates to stay flat over the rest of 2013 and for the “competitive and price sensitive” state of the market to continue into next year.

Jelf group chief executive Alex Alway (pictured) said: “The trading environment in which the group operates is challenging and competitive. It reflects the wider UK economic problems. Our clients are predominately owner managed businesses and related individuals.

“Our performance reflects their situation. The outlook in the short- to medium-term continues to look challenging. We are continuing to invest in growth initiatives and in further efficiencies.”