Broker Network Holdings Plc ('Broker Network' or 'the Company'), the network of
independent community insurance brokers, today announces that the financial
results for the half year to 31 October 2005 are expected to exceed current
market expectations. This is as a result of strong trading across the Company's
operations combined with a one-off improvement in contract terms with insurer
partners.
The detailed interim announcement of the results for the six month period will
be made on 13 January 2006.
To beat the house broker forecast of c. 11.5 for the year, (which given an element of growth) you might expect to be split 5p first half 6.5 second. I would expect the business to have brought in 6p first half + the "one off benefit". During the first 6 months This is going to put them on a single figure pe. with really excellent growth prospects.
This has to be a very attractive play. No debt, and largely recurring revenue streams thus no great risk. Their network relationship with small brokerages (now 150 members November newsletter)forming a nice line of prospects to be fully subsumed into the group, as and when principals choose to retire. Shares are tightly held so it has extreme mobility. Problem is this rather an unsexy sector...cant have everything.
