Lorica's income growth continues

Lorica Insurance Brokers Turnover

Lorica has once again delivered income growth in the year to 31 March 2015, generated from our continuing investment to engage, develop and retain talented individuals and teams.

Matthew Bray, CEO commented:

“We are pleased to see an increase in turnover of 9.5% in our results for the year and an improvement in profitability with planned operating losses down by 32% compared to last year. We are confident in our strategy and Lorica’s longer term opportunity. Our focus remains on recruiting talent and providing an environment for that talent to flourish”

RESULTS AT A GLANCE

Turnover was up 9.5% on the previous year boosting income to £12.1m; this is the fourth consecutive year of significant income growth.  Since 2011, compound growth has been 16%, all achieved organically:

At the end of the 2015 financial year we had eight branches across the UK but since then we have opened up two new branches in South Wales and Bournemouth, taking the total to ten.

Areas of expertise include Leisure & Hospitality, Property Owners, Motor Trade, Technology and Management Liability which drive core growth, whilst new specialisms will continue to evolve as new individuals and teams are engaged, such as in the areas of Credit Risk, Water and Holiday Parks.

Operating loss showed an improvement of 32%. Although we are reporting an operating loss of £1,951k for the year this includes £647k relating to investment in new Account Executives during the year and £535k in respect of one off costs; on a like for like basis the existing business at the end of 2014 has moved from a operating loss of £2,867k to a loss of £972k, a 66% improvement. These results are in line with expectations and provide further validation for our strategy. The investment we have made in our Acturis platform (back-office software) is generating efficiency savings and this is also showing through in our results.

Trading outlook

Graham Faux, Finance Director, added:

”Trading to date has shown further strong growth with income up 12% so far this year. For the non-investment element of the business we expect to make a small operating loss on 2015/16 and to move into profit in the following financial year. With the consolidator landscape increasingly uncertain, Lorica continues to grow with momentum building. This is migrating to profit as planned. We are well placed to fulfil our ambitious expansion plans.”

Investor confidence and support continues, with share capital investment increasing from £7m to £9.1m during the year.  Lorica has no external debt.

Key Financials

                                    2015 £000's          2014 £000's          % Improvement

Turnover                          12,113                   11,067                     9.5%

Operating loss                 (1,951)                   (2,867)                   31.9%

Operating loss*                  (972)                   (2,867)                    66.1%

Share Capital                      9,125                    7,000                    30.4%

* Adjusted for one off costs and 2015 new investment