CompaniesMay 15 2013

Foster Denovo profits growth point to spending spree

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The chief executive officer said the company could return to the acquisition trail again after reporting stronger profits and turnover for last year.

Mr Brosch said that significant levels of pre-RDR investment had also paid off, with strong organic growth coming as a result of the work done before the 1 January implementation date.

He said: “We have undertaken a great deal of work in the lead-up to RDR, which has further built on the deep foundational values that have guided our success to date.

“These results have also been supported by the acquisition activity that we undertook in 2011 and 2012, which was successfully integrated during the period and we remain excited by the prospect of further acquisition opportunities in the future.”

Among the firms that have been purchased by Foster Denovo so far are wealth manager Barker Poland and the IFA arm of insurance broker John Holman & Sons.

Key facts:

• Turnover up 14.5 per cent, from £18.2m to 320.8m

• Pre-tax profits rose by over 70 per cent, from £500,000 to £947,000


Foster Denovo is not the only firm seeking growth through acquisition. Earlier this week, Jelf announced that it had acquired Insurance Partnership, a broker based throughout Yorkshire and the Midlands.

The deal, worth up to £15.5m, will boost Jelf’s gross written insurance premiums by £182m to £235m.

National wealth manager Bellpenny also continued its expansion earlier this month by acquiring the advisory arm of Kent-based accountancy practice Foot Davson Financial Services, while earlier this year, Towry bought several practices across the UK and boosted its presence in Scotland.