Shares in highly acquisitive ‘full-service’ brokerage Jelf have held up well in tumultuous markets, with investors continuing to warm to its fast-growing financials and takeovers in fragmented markets.
Providing an array of services to medium-sized owner-managed businesses, the South of England and Wales-focused company’s results for the year to September sparkled. Turnover increased by more than 60% to £40.6m, driven by acquisitions and new corporate client wins, while organic growth was encouraging at 16%, buoyed by cross-selling successes. EBITDA more than doubled to £7.2m and profits at the pre-tax line increased to £2.5m (2006: £2.1m).
During a busy year for acquisitions, 66% sales growth was seen in the commercial insurance broking operations, with stellar growth rates enjoyed within the employee benefits, healthcare and wealth management operations. Operating margins increased to 16.3% (12.9%) despite continued investment (margins have increased by more than 70% since the company floated on AIM in late 2004).
Accompanying the numbers were three further strategic acquisitions – Manchester-based Manson, Jelf's first purchase outside of Wales and Southern England, as well as Devon-based businesses BDB and CRM – and news of a highly significant £47m placing including a £26m investment from the fully listed 3i Quoted Private Equity for a 24.6% stake.
Trading on a (historic) earnings multiple of 14.5, Jelf now has extra firepower for deals and offers investors exposure to acquisitive growth, good levels of repeat business and healthy cash generation. Originally backed by Growth Company Investor at 135p, it is worth topping up holdings if you are able to do so.
Growth Company Investor is the UK’s leading authority on small-cap and AIM companies. You can gain immediate access to all the recent share recommendations with no obligation, with a free 30-day trial. Click here to join today.
Market cap: £68.48m
Share price: 247.5p
More breaking news stories.
More extended feature articles.
And a depth of analysis you
can't find anywhere else.
Advertisement
VCT Report 2010 uncovers the money available
for investment in every single VCT, helping you get one step ahead in the race to attract funding for your unquoted, AIM-listed or PLUS-quoted
company.
Order VCT Report 2010 today using this online form
A comprehensive overview of cash shells on AIM and PLUS, companies that have become a significant feature on the market landscape. For more information and to order, click here or contact our marketing team on 020 7250 7056.
Informative features and research on fast-growing companies, small-cap and growth stocks, penny shares, stock market tips and share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.
A full year's subscription to What Investment magazine for £19.95, a whopping 58% off. Get the latest news, features and expert advice on ISAs, Investment Trusts and Funds, SIPPS, Investing for Children and much much
more. Find out more here.
is the definitive and most up-to-date guide to completing your self-assessment tax return, making sure that you get it right and on time, and showing how you can save tax. For more information and to order, click here or contact our marketing team on 020 7250 7056.
The new, fully updated AIM Guide is now available to buy for only £49.95 (saving you £30).
A 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies. Order your copy today Hurry, as offer ends soon!
Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.
Advertisement
Delcam, the international seller of CAD/CAM software to the engineering, aerospace and healthcare sectors among others, is a cash-generative small-cap seeing recovery in its markets.
Bombed-out biotech play Antisoma is hoping two of its drugs will lead to good fortune after experiencing disaster with lung cancer treatment ASA404.
London pub operator The Capital Pub Company is seeing continuing sales growth on the back of a surprisingly resilient market.