THB pre-tax profits fall

THB Group has reported turnover of £51.9m (30 April 2007: £28.7m) and an underlying trading profit of £4.6m (30 April 2007: £4.3m) for the 18 month period ended 31 October 2007.

However the Lloyd's broker's profits before tax dropped to £0.9m compared to £2.43m for the year ended 30 April 2007. In a statement THB said it incurred exceptional costs of £1.2m associated with the acquisition of PWS.

"The underlying trading profit before exceptional items, amortisation and impairment of intangibles was £4.55m (2007: £4.32m), but the underlying trading margin fell to 8.8% from 15.0%, reflecting the time required to integrate a major acquisition like PWS and the market and currency pressures affecting the business in the period," he said.

Vic Thompson, founder of THB and is who retiring as chief executive of the group at the end of April, said: "The business has coped extremely well with tough markets and prevailing foreign currency rates over recent years. It is well equipped to take advantage of improvements in the trading environment in all three areas where we operate and to find good opportunities in the current climate to advance."

Frank Murphy, the incoming group chief executive, who currently heads up THB's Lloyd's broking operation, Thompson Heath & Bond Ltd, added: "Our investment in the new managing general agency, Unicorn Underwriting, and in established broking operations worldwide, particularly growing regional hubs in the Far East, Middle East and South America, clearly gives us a strong footing. The fact that this investment strategy has recently been backed by significant new equity means we also have a very solid balance sheet. We're in great shape for the future."