Job cuts in Midlands ‘inevitable part of acquisitions’, says Giles

Giles is to cut jobs at David Moore and Co, the broking firm it acquired in April last year, as part of a shake-up in its regional office, writes Saxon East.

Chris Giles, the consolidator’s chief executive, said a “small number” of staff were facing redundancy.

He said the shake-up would boost efficiency by moving David Moore, which has 18 staff in Wolverhampton and Newport, into Giles’ 11,000 sq ft Birmingham office in Temple Row.

Insurance Times understands staff are being offered relocation.

Giles said: “This is an inevitable part of the integration of our acquisitions. Of all the consolidators, we are the only one who integrates across our business. We will drive it in a cost-effective way.”

He said the restructuring would help the firm’s profitability.

“We have the highest profit margin in the business because we are a good consolidator,” he said.

Giles paid £3.2m for David Moore, one of 22 acquisitions over a 12-month period.

There has been a lot of restructuring in the region in the past year, as acquired brokers are rolled into key offices, labelled as “centres of excellence”.

In March, Giles announced it would close its Manchester and Milton Keynes offices, with staff moving to Birmingham and Wigan.

The Birmingham office handles charity care and professional indemnity business. It also incorporates Midlands Risk Management, bought 18 months ago for £2.7m, once one of the largest independent brokers in the region.

Giles has also established an office in Halesowen, dealing with corporate and SME business. Eighteen months ago it bought LBW, a broker based in Dudley, which now has been rolled into the Halesowen office.

Giles would not say if there would be any further restructuring this year.

Earlier this month Insurance Times reported that Giles suffered a £10.7m loss. The broker defended the result saying adjusted pre-tax profit – which excluded amortisation, loan-note interest and non-recurrings – came to £3.5m.