RFIB reveals operating profit growth

Profit before tax reduced by 32% from £4.7m to £3.2m which, according to the company, was mainly due to an exceptional profit of £1.5m generated in 2009 by the sale of two non-core businesses.

Turnover, including fiduciary interest as well as brokerage, grew 13% from £38.3m to £43.5m during the period and Ebitda rose by 6% to £5.7m.

Marshall King, chief executive officer at RFIB, commented: "Against the background of challenging conditions in the intermediary sector, our top line growth reflects the strength of our team and our increasingly differentiated position in the market. Over the past two years we have been investing in carefully selected individuals and teams to bolster our already strong internal capability. We continue to be approached by individuals and teams who are looking to join a leading independent platform.

"The 17% growth in operating profit is also very satisfactory, given that over the last two years RFIB has invested in a larger new central London office and new IT infrastructure. These, together with the full year effect of two new international offices - in Hamilton, Bermuda and Perth, Australia - which were established during the prior year, have inevitably increased the expense base but have given us the opportunity to scale the business in future."

The company stated that it saw robust growth in marine and non-marine business emanating from Western Europe and Scandinavia and a strong contribution from emerging markets, particularly Middle East and Eastern Europe. The group also saw solid growth in its London market and Bermudan specialty reinsurance operations.

Lord Hodgson, chairman of RFIB, said: "We recently announced a goal to double turnover and triple profits. The key themes of the strategy are firstly, a focus on core classes and territories where we can develop superior growth and good profitability and secondly, to make RFIB the most attractive place for top broking talent to join. These results, with the investments we have made, position us well to deliver on this strategy."