Group financial results for the year ended 31 May 2008   

National insurance broking, risk management and financial services group Oval Limited (Oval) has released results demonstrating that it has been yet another successful year for the company.

Group revenues increased by 38% from £60 million to £83 million. On an annualised basis – including the full-year impact of companies acquired in the last accounting year – group revenues are now in excess of £100 million. Oval’s insurance broking division grew its gross written premiums to in excess of £330 million.

EBITDA (earnings before interest, tax, depreciation and amortisation) before one-off costs increased by 49% to £17.4 million.

Backed by investment trust company Caledonia Investments plc, Oval showed that it is delivering growth at an accelerated pace, in spite of difficult global economic circumstances and a soft insurance market. In the coming year, Oval will build on the strong financial performance it has achieved this year to develop a sustainable business advantage based on the expertise and specialism of its staff and absolute dedication to client needs.

Oval substantially increased the number of acquisitions it made during the year. Twelve acquisitions were completed between June 2007 and May 2008.

Highlights of the year:

• Gross written premium – increased to £333m
• Turnover – up by 38% from £60m to 83m
• Annualised turnover – up to over £100m
• Profit before tax – up by 16% to £4.6m
• Underlying EBITDA – up by 49% from £11.7m to £17.4m
• Twelve acquisitions completed in the 12 months since 1 June 2007

Acquisitions completed:

• Creamer Group Plc (Warrington) July 2007
• Martin and Pethard and its associated company Premier (Redditch) August 2007
• Hart Owen Plc (Sheffield) October 2007
• Griffin Commercial Insurance Brokers Limited (Exeter) October 2007
• United Medical Services Ltd (UMS) (Bristol & Lytham St Annes) November 2007
• Ward Mitchell Partnership (Leicester) November 2007
• Tett Hamilton (Bristol) December 2007
• Cook Sheppard Pinhey (Ipswich) December 2007
• FMW (Feering, Colchester) January 2008
• Bartholomew & James Ltd (Belfast) April 2008
• Independent Insurance Brokers Ltd (Aberdeen) May 2008

With the acquisition of UMS, a leading corporate private medical insurance advisor, Oval Healthcare, a new healthcare division, was formed in November 2007. 

In April 2008, the acquisition of Belfast based Bartholomew & James marked Oval’s first move into Northern Ireland.

Chairman Oliver Stocken said:

“This has been another good year for Oval; we are very pleased to see turnover increase by 38% to £83m and Operating Profit before goodwill amortization improve by 53%. This has been achieved in spite of an economic downturn and a soft insurance market.

Looking to the future, we are clearly mindful of the difficult economic environment that prevails, and certainly 2009 will be a time for very careful and considered investment. However, the recently secured £115m debt facility alongside additional equity capital, means Oval’s overall strategy remains unchanged. We aim to deliver growth through the continued development of our underlying business and the acquisition of high-quality companies that complement our established operations and broaden our capabilities.”

Chief Executive Officer Phillip Hodson said:

“I am delighted with the progress that Oval has made this year, in particular the successful acquisition and integration of twelve high quality businesses. 

We have strengthened our financial services business with the acquisition of the Ward Mitchell Partnership among others, and the acquisition of UMS, now Oval Healthcare, has significantly improved our capabilities in that area. We are delighted with the number of top quality people we have brought into the group through these and other acquisitions.

Over the next twelve months we are looking forward to our continued growth as an independent insurance broking and financial services company.”

Please call Madelaine or Elin for more information:

Madelaine Bennett
madelaine@prosperocommunications.co.uk
mobile: 07977 290416
office: 0207 249 9190

Elin Morgan
elin@prosperocommunications.co.uk
office: 020 7249 9302
mobile: 07984 816 948