Insurance broking and financial services specialist CBG is eyeing new acquisitions after upping annual pre-tax profits 60 per cent to £1.6 million.

The Manchester-based concern raised turnover 45 per cent to £7.4 million in 2007, helped by a £1.1 million contribution from companies bought during the year, and increased earnings 29 per cent to 9.31p a share. One deal, the purchase of Shoreditch-based insurance broker Marcus Hearn for up to £2.7 million in shares and cash, took CBG into the London marketplace and, after its year-end, CBG bought north-western insurance broker Barclay Brown Holdings in January for up to £1.8 million.

Chairman Laurie Turnbull says ‘it is clear that there will be continued consolidation’ as the insurance broking market ‘matures’. He adds that the company is now considering ‘further acquisitions’. Turnbull suggests these will add cross-selling opportunities to organic growth achieved by developing client relationships.

Floated in late 2004 at 36p, CBG shares reached 191p last December, but have eased since then. At 151.5p, up 4.5p this morning and valuing the company at £21 million, they should outperform some others in the sector.

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CBG Group	AIM	£20.92m	135.00p	0.00p
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