Philip Currie - Breaking the cycle

Describe your company and role.

Currie: McBains Cooper Group provides professional property-related consulting services to the property and construction sector. With offices in Birmingham, London, Manchester, Oxford, Windsor and Perth, we are one of the longest-established consultancies in the UK. Projects range from minor works to major contracts worth more than £100m and there are projected profits of over £2.5m for 2008. The balance of projects is around 60% surveying and 40% design. The company has evolved after much merger and acquisition activity and came through a particularly tricky period between July 2000 and June 2003. A successful rationalisation of the share structure in 2005 was supported by Allied Irish Bank with a seven-year term loan to the tune of £2m. My role is that of group finance director coupled with that of company secretary.

Who places insurance at your firm and what kinds of cover do they place?

Currie: The finance director is responsible for the management and placement of its general insurance requirements via its brokers. I am also responsible for the company's professional indemnity cover. The general insurance portfolio comprises commercial combined, public liability, employer liability, directors' and officers', employment practices, motor insurance, health insurance, life assurance (death-in-service), travel insurance, private health cover and a dental scheme.

Describe your broker relationship.

Currie: The relationship with the Jelf Group, and formerly with Goss & Co. which was acquired by Jelf (in March 2006), has lasted for over 15 years. That the company has maintained this relationship for so many years speaks volumes about the quality of the partnership we enjoy. An attractive element of the relationship has been in the consistency of the personnel, which has fostered a very sound understanding of our business activities and its related insurance needs. The company's portfolio of general insurance does not require a material level of interaction. We meet close to renewal formally, with a mid-year review to allow an each-way briefing on any material issues, though if there is a pressing need then there is never a problem in fixing a meeting.

What do you feel about the insurance cycle?

Currie: In truth this is not an issue for McBains Cooper. The scale of annual premiums is close to £100,000 and has not altered materially in my term of seven years as the firm's finance director. Planning and budgeting for insurance premiums is not an issue.

What are the greatest risk factors facing you within your corporate environment?

Currie: McBains Cooper's activities are inextricably linked to the fortunes of the property and construction industries. In the last few years these industries have enjoyed an attractive trading environment that has in turn benefited McBains Cooper. In recent months there has been a cooling of sentiment in markets, which is filtering through into property and construction. Commercial activity will continue but it is likely that the property industry will experience a slowdown. McBains Cooper believes the market in the south-east will, between 2010 and 2012, be driven by build-out, which is the high demand for delivery and construction of the development projects that have been in planning. Investment post-2011 is likely to be reduced and this downturn will result in more attention on the regional markets, in particular the regeneration schemes. McBains Cooper, having invested and grown its regional base and capability over the next 18 months, will be well placed to build and capitalise on this change.