23 Mar 2012

Charles Taylor Consulting

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New chief executive David Marock has wasted little time in getting to grips with insurance services outfit Charles Taylor Consulting (CTR) since joining last July.

New chief executive David Marock has wasted little time in getting to grips with insurance services outfit Charles Taylor Consulting (CTR) since joining last July.

A new corporate identity has been launched, staff are invited to suggest growth avenues and later this year it plans to drop ‘Consulting’ from its name. Dating back to 1885, Taylor trades from three professional services divisions, all focused on the insurance market but spanning shipping, loss adjusting and technical services.

Last year it suffered a 49% slump in pre-tax profits to £6.4m, despite a 3% lift in sales to £102.5m. The dividend has been rebased to a one-third/two-third split, so a same-again 10p payout represents a useful yield of 7% at the current price.

The profits collapse was due to a large prior-year profit from non-life insurance companies, so without its reoccurence Taylor suffered. Listed on the main market, the intention is to get closer to its clients, so expect expansion in areas such as Latin America, the Middle East and Asia.

Trading from 47 offices in 23 countries, the business is well spread but Marock (formerly at Beazley) is keen to continue to pay down debt so expect organic rather than acquisition-led growth. He says, ‘I have been incredibly impressed with what I have found so far, but see substantial untapped potential.’

House broker Peel Hunt forecasts 2012 pre-tax profits of £10.5m, EPS of 21.2p and a maintained dividend. The key attraction is of course the yield, but if Marock can work his magic then there may be some capital appreciation to tap into as well. Add.

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