Ardonagh grows adjusted EBITDA by 14.4% in first nine months of 2020

Broking group Ardonagh has reported a 14.4% growth in its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) over the first nine months of 2020 – this has improved from £144.4m in 2019 to £165.2m this year.

Today, Ardonagh Group has published its results for the nine months ending 30 September 2020.

Over this period, the firm’s income has improved by 2.8%, reaching £519.5m at the end of Q3 this year compared to £505.4m at this point last year.

Ardonagh attributed this to underlying organic growth of 2.2%, excluding the impact of the Covid-19 pandemic, as well as the broker’s M&A activity.

During quarter three, Ardonagh completed five acquisitions, including MGA Thames Underwriting and specialist retail broker Lloyd Latchford.

The broker’s operating cash conversion was maintained at 94% for the 12 months to 30 September 2020, while senior net leverage remained stable at 5.6 times, with available liquidity of £568m – Ardonagh said this provides it with “ample firepower for investments across all platforms”.

Strong trajectory

Ardonagh’s operating costs have decreased by 1.8% since last year, moving from £361m at the end of Q3 2019 to £354.3m this year.

Group chief executive David Ross said these results demonstrate Ardonagh’s “strong trajectory” as it approaches the final quarter of 2020.

He said: “Seven weeks after reporting our half year results, we are pleased to confirm the strong trajectory into the final quarter of 2020.

“Ardonagh has continued to deliver significant synergies from the integration of acquisitions and leverage combined scale and best practices across the businesses.

“Our people have continued to react to the changing needs of customers and collaborate on solutions.

“Our latest results once again reflect the dedication, scale and diversity of our resilient business, having welcomed hundreds of new colleagues into the group.”