Broking group Jardine Lloyd Thompson (JLT) made a profit before tax of £76.4m in the first half of 2011, up 9% on the £70m it made in the same period last year.
The broking group’s revenues were up 9% to £411.3m from £377.8m. Of this, £408.7m is fees and commission (H1 2010: £375.6) with the remainder coming from investment income.
The company’s retail broking business saw the biggest revenue boost during the first half. It rose 18% (14% on an organic basis) to £156.3m. London market revenue grew 4% (3% organic) to £171m. This put total risk and insurance revenue up 10% (8% organic) to £327.3m.
JLT posted a slump in profit after tax to £53.6m in H1 2011 from £58.6m in H1 2010. But the company said this was because a one-off tax credit of £10.3m boosted the H1 2010 after-tax result.
"Our emphasis on being a client first organisation is clearly serving us well, as demonstrated by our strong organic growth record,” said JLT chief executive Dominic Burke in a statement.
While profits and revenues were up, one off expenses associated with JLT’s cost-cutting programme have increased to £24m from the previously-announced £19m. However, JLT also expects the cost savings derived from the programme to increase to £20m a year from £16m.
The cost cutting programme, which is seeing JLT streamline its back-office processes, is scheduled to be complete by 30 June next year.
JLT H1 2011 results in £m (compared with H1 2010)
- Total revenue: 411.3 (377.8)
- Profit before tax: 76.4 (70)
- Profit after tax: 53.6 (58.6)
