Specialist leisure centre

Opus was set up five years ago following the management buyout of Heath Group's UK retail operation. The group reported a rapid turnaround for the 12 months ended 28 February 2003.

Trading profit was up by 59% to £1.9m and profit before tax was up by £2.1m to £576,000. Much of this was achieved by reducing trading expenses by almost £1m. The group consists of an independent financial adviser, a health and safety consultancy and an insurance broking company, Opus Insurance Services. The broking arm increased its trading profit by 73% to the year ending February 2003. Opus Group hopes to grow revenue and profit by 30% through strategic acquisitions and organic growth this year.

Sport cover

Opus's general insurance activities focus mainly on commercial lines. It has a niche in leisure-related business providing cover for sport stadiums and professional sporting organisations, themed leisure parks, theatre and the arts. It also represents a number of affinity groups, including the National Association of Master Bakers.

Around 5% of Opus Insurance Services' business is in personal lines, largely provided to the senior personnel at its corporate clients. However, the company plans to grow its personal lines book through affinity schemes.

Despite difficult market conditions, chief executive Ian Brice says the group has not faced major difficulties when placing risks. "Reduced capacity following insurer consolidation has meant we experienced difficulties in some areas," he says. "But we know the specialist markets, are Lloyd's accredited and have good relations with major insurers. This has meant we have been able to find cover for even the most complex risks."

Opus has won several high-profile clients, including the Millennium Stadium Company. It has recruited a specialist leisure team from a competitor to assist in the growth of this sector and plans to offer a wholesale service to brokers with leisure clients.

Brice says: "We plan to grow by aggressively marketing our in-house expertise and are aligning our resources to offer wholesaling."

Opus' rise in profits was partly due to cost savings, and Brice says this included a change in the management structure and a concentration of the number of markets it uses.

The group's management team is supported by a number of key groups covering areas such as business development, insurance security and markets, human resources, compliance and information technology.

Brice adds: "We wanted to create a more flexible management structure to enable wider participation in the planning and implementation of business strategies."

Brice welcomes Financial Services Authority regulation and believes the group will have no problems complying.

He says: "FSA regulation is unavoidable. We employ dedicated personnel who are looking at compliance but we have lots of experience in this area from our IFA wing."

Opus has completed a refinancing of its banking facilities with the Royal Bank of Scotland, which along with its principal investor Bridgepoint Capital is backing its acquisition plans.

Brice says: "The refinancing represents a strong endorsement by our bankers of our strengthened financial position. The cost of the new facilities is less than the facilities replaced and these are repayable over a longer period. This greatly strengthens the group balance sheet and makes Opus well positioned for continued growth."

"We are in advanced negotiations to acquire a brokerage and are hoping to make an announcement in the next few months," he adds. "We continue to look for acquisition opportunities that will enhance our existing operations."

OPUS

Chief executive: Ian Brice

Established: 1998

Number of offices: 10

Number of staff: 250

Gross premium income for general insurance: £100m.