COBRA acquires Thornway Insurances
COBRA Holdings Plc is acquiring Manchester-based general broker, Thornway Insurances Ltd.
The transaction will take the form of the issue of 1,000,000 new COBRA shares to the vendors, and a cash sum of £351,954, representing the amount of Thornway’s surplus cash balances.
Thornway’s most recent audited accounts, which are for the year ended 30th July 2008, show turnover of £407,485 and pre-tax profits of £153,305.
COBRA says it will fully integrate Thornway in to its regional hub in Manchester.
The highly acquisitive retail and wholesale broking group operates a “hub and spoke” growth strategy that involves the establishment of substantial regional offices or “hubs” with smaller local offices or “‘spokes”.
Further purchases are anticipated as COBRA says it will continue taking advantage of the opportunities for consolidation in the insurance broking market, in particular in the provincial markets.
However, the group recently reported a 66% fall in pre-tax profit for the six months ending September 2008, despite a significant increase in revenues.
Financial charges on five acquisitions made during the period, in addition to write-offs, were blamed for the decline.
Category: Companies News, Insurance News
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