A strong operating performance with Adjusted EBITDA up almost 20% year on year
Strong Organic growth complemented by strategic acquisitions and key hires
Transformation plan on schedule
The Ardonagh Group has announced its financial results for the nine months ended 30th September 2017.
The Group, formed in June 2017, brought together Autonet, Chase Templeton, Direct Group, Price Forbes and Towergate and is comprised of a workforce of more than 5,500 people, 100 office locations and more than 20 leading consumer brands. Three high quality businesses have been added to the Ardonagh stable since its formation: Healthy Pets, Carole Nash* and Mastercover*. Pro forma for these acquisitions, the Group delivered income of £528 million and Pro Forma Adjusted EBITDA of £148 million for the twelve months ended 30th September 2017.
David Ross, Chief Executive of The Ardonagh Group, commented: “This has been another strong quarter where we have achieved positive income and Adjusted EBITDA1 growth. With three high quality, complementary acquisitions, a number of game-changing strategic hires and the delivery of robust organic2 growth, we continue to capitalise on the significant market opportunities ahead.”
Group operational highlights
- Strong operational performance across the business: +3.7% growth in income to £373.4m for the first three quarters of the year, with Adjusted EBITDA1 up +19.7% to £79.1m.
- Mid-single digit underlying organic growth: +3.5% in Q3, underpinned by market growth and investments made in income producers.
- Robust pipeline of high quality acquisitions: one deal completed (Healthy Pets) and two deals* agreed (Carole Nash and Mastercover) each with clear strategic fit and strong synergies.
- Transformation plan on schedule: Significant progress made with 73% actioned. £41m annualised savings delivered to date and four out of six key programs almost complete.
- Hiring momentum continued to support future ambitions, including reshaped leadership in Distribution and strategic new hires in Wholesale.
- Pro forma Net Secured Leverage broadly unchanged at 5.56x as at 30th September 2017 including the acquisitions of Carole Nash and Mastercover.