THB Group said its pre-tax profits for the six months ending 31 October 2003 fell to £1.05m compared with £1.64m for the same period in 2002.
Turnover for the period rose to £13.76m from £10.54m in 2002.
THB said the drop in profit was expected due to the loss of its US open market terrorism business and the continued decline of the US dollar.
Other factors affecting profits were higher costs in errors & omissions insurance costs, growing competition in the motor fleet sector and poor trading in two of its provincial US businesses.
THB made two acquisitions during the period, which it said also impacted on its pretax profits.
A North American team acquired from Alexander Forbes had been fully integrated and was trading profitably. The Rarrigini & Rosso Group was trading below expectations to date and was likely to under-perform for the rest of the trading year, said THB, although prospects remained very positive.
The group said trading conditions remained favourable and it would continue to actively seek smaller `bolt-on' acquisitions.
