Clear Group improves ebitda by 33.4% in year to October 2023

Intermediary organisation Clear Group has improved its earnings before interest, tax, depreciation, amortisation and exceptional items (ebitda) by 33.4% in the year to 31 October 2023, from £14.3m in 2022 to £19m last year.

This is according to the firm’s full-year financial results, published today (20 March 2024), which cover the 12 months up to the end of October 2023.

The firm additionally grew its revenue by 31.7% over the reporting period, moving from £56.7m in 2022 to £74.7m last year, and recorded a client renewal retention rate of 94%.

Mike Edgeley, group chief executive of Clear Group, said: “2023 marked an exceptional year for Clear Group, achieving another year of strong growth.

“The investment from Goldman Sachs is validation of the group’s performance to date and ambitious plans for the future and will boost the next phase of the group’s exciting growth strategy.”

Acquisition impact

In the last reporting period, Clear Group completed 10 acquisitions. This includes its purchase of Sheffield-based broker IFM Insurance Brokers in March 2023, HCF Group in September 2023 and Irish commercial broker McAuliffe Barry and Collins in April 2023.

Alongside building its portfolio of brokers, Clear Group has also invested in the MGA market, buying Profile Underwriting, One Commercial Specialty and a 50% shareholding in Thomond Underwriting – based in Ireland – in July 2023.

The business also set up a legal entity in Germany in October 2023, to bolster its proposition in Europe.

Considering the full-year financial impact of the 10 completed acquisitions, Clear Group’s reported pro forma revenue is £91.8m and pro forma ebitda is £24.1m.

In the current financial year, Clear Group has so far completed four acquisitions – it noted that these transactions amount to £1m of future run-rate ebitda.

Edgeley continued: “The acquisition of 10 quality businesses, [which] embody Clear’s values, highlights the attractiveness of Clear’s proposition and [adds] expertise in a number of sectors which broadens the group’s capability.

“The group is extremely well placed for its next phase of growth.

“We continue to invest in and develop our proposition for new and existing clients within our existing business, while also expanding that strong client service ethos into new markets and territories.”