Insurance and financial advisory group CBG sounds bullish after lifting interim pre-tax profits 48 per cent to £930,000.

Manchester-based CBG, a leading independent adviser providing insurance broking, employee benefits, wealth management and specialist sports injury insurance services, increased turnover 84 per cent to £5.7 million in the six months to June, with nearly £1.2 million coming from acquisitions. The AIM-quoted company, which has always grown by ‘selective’ acquisition as well as organically, increased earnings 23.5 per cent to 4.67p a share.

CBG, steered by managing director Mike Askew and chairman Laurie Turnbull, made two significant acquisitions during the first half year. In January, the company bought north-western general insurance broker Barclay Brown Holdings for an initial £1.6 million, plus a deferred £1.25 million and a performance-related £550,000, and in April CBG bought Oldham-based insurance broking and financial services group Howgud Ltd (EDN) for an initial £1.2 million and deferred payments of up to another £1.125 million if certain performance targets are met.

The company, which ended June with £1.3 million cash and a £1.3 million overdraft, has already successfully consolidated key areas of these two acquisitions, says Turnbull. He concedes that in today’s financial and insurance markets ‘there are undoubtedly challenges ahead’, but insists ‘we are delivering our objectives and performing extremely well’.

Recommended by Growth Company Investor four years ago at 42.5p, CBG shares hit 191p last December and now trade at 161p, valuing the company at £22.7 million. They could still outperform several sector peers.

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CBG Group	AIM	£20.92m	135.00p	0.00p
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