'More acquisitions before Christmas' as Davies Group reports continued growth

Davies Group has posted strong full-year results for the third year in a row.

In its first full year of results since being taken over by private equity company, HGGC, revenue and EBITDA increased dramatically, while organic growth increased steadily.

For the year ending 30 June 2018, revenue increased by 41% to £77.7m (£55.1m in 2017) and EBITDA grew by 47% to £15.4m (£10.5m in 2017) on the back of significant investment in technology and digital transformation.

Organic revenue grew at the same rate (11%) in 2018 as it did in 2017.

Dan Saulter, group chief executive officer, said: “I am very proud of our team across Davies.  Once again they have delivered a great set of results, set alongside our significant investment for the future, and a deeper set of capabilities and solutions for our clients. 

”Beyond the numbers, we have created a platform that can continue to thrive.  Through our ‘Davies Incentive Plan’ we have introduced employee ownership, enabling our people to share in our long term success.  Through our ‘Disruptive Thinking’ lab we are capturing innovative ideas from our people, helping our clients to improve service, grow and win, as well as creating career opportunities for our teams”.

Acquisitions imminent

In the year, Davies made a number of significant acquisitions, with CMSL, Ambant, ServiceTick, TLSS and R&Q’s Insurance Services businesses joining the group.

Back in July, Saulter spoke to Insurance Times saying that acquisitions were still a major priority for the company. But, the last purchase was made in January, a long time in the eyes of an acquisition hungry company.

“Don’t worry about us,” Saulter told Insurance Times. ”You’re going to see us making some important announcements between now and Christmas across all parts of the business.

”We are going to be in good shape from now until the end of the year.”

Investment in tech and innovation

Last year, Davies launched its innovation lab, and Saulter said he was very proud at how successful it had turned out to be.

“We have invested more in our digital assets, and we launched our disruptive thinking innovation lab last year.

”And we are very happy to report that three of those champions’ ideas have now been invested in and you will see those, with one or two coming to the market very soon.”