CBG raises £1.65m

07/11/2008 Robert Tyerman

Insurance broker and financial services specialist CBG Group has raised £1.65 million at 120p to fund growth and acquisitions.

The Manchester-based company, whose growth has been fuelled by takeovers, has secured this new funding in a placing with institutions through Zeus Capital and Religare Hichens, Harrison. AIM-quoted CBG, which recently negotiated increased banking facilities with Royal Bank of Scotland, says it will use these and the placing proceeds to expand the business organically and seek any suitable acquisitions in insurance broking.

Chairman Laurie Turnbull claims that institutions’ willingness to increase their holdings in CBG in the midst of current financial markets turmoil ‘is a testament to our proven successful track record’. Acquisitions helped the company increase pre-tax profits 48 per cent to £930,000 in the first half of this year.

CBG shares rose from 2003’s debut price of 36p to 191p last December before entering choppier waters. Now 137p, valuing the company at £19.4 million, they should outperform several sector peers.

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