The Ardonagh Group – whose business is organised into the Ardonagh Advisory, Ardonagh Retail, Ardonagh Specialty, and Ardonagh International operating segments – has released its financial statement for the six months ended June 30.
According to the broking group’s 67-page report to investors, Ardonagh’s loss for the period went down, from £94.1 million (around AU$179.7 million) in H1 2020 to £41.3 million (around AU$78.8 million) this time around. The smaller loss was attributed to the company’s improved operating result, reduced financing costs, and increased tax credit.
Ardonagh said its total income in the first half grew 33.4% from £324.8 million to £433.2 million, while its operating profit rose from £37.6 million to £56.2 million. It was noted that the boost in income was mainly due to the combination of material acquisitions alongside organic growth in the advisory and specialty segments.
EBITDA (earnings before interest, taxes, depreciation, and amortisation), meanwhile, climbed from £80.9 million to £115.2 million. As for adjusted EBITDA, the 2021 figure represents a 53.4% leap from the corresponding amount last year.
“This is an exceptionally strong set of results as the business and our clients rebound from the economic impacts of COVID-19 with vigour and confidence,” commented chief executive David Ross. “It reflects the dedication of our 7,000+ people and the delivery of our strategy from the leadership teams across all operating segments.
“The first half of the year marked significant international expansion with the launch of Ardonagh Global Partners and Ardonagh Europe forming our new International platform, and we were pleased to welcome new colleagues from Australia, Ireland, Germany, Chile, Bermuda, and the United States, as well as the UK.”
Ross also made special mention of the group’s swoop for the insurance operations of BGC Partners, which upon completion will make Ardonagh Specialty the biggest privately owned London wholesale broker. The CEO also cited the launch of reinsurance broker Inver Re, as well as Ardonagh’s “substantial” investment in data and technology.
“We enter the remainder of the year with unparalleled breadth and diversity – a leader in each of the sectors in which we operate and a phenomenal platform for growth with the virtuous circles of operational, organic, and inorganic excellence at the heart of the business,” he added.
Meanwhile it was announced that Ardonagh’s shareholders have subscribed for £350 million of additional equity combined with a £550 million additional committed capital expenditure, acquisition, and re-organisation facility backed by existing lenders. The combined funding, according to the company, will enable it to continue executing the group’s mergers & acquisitions and investment strategy at pace - not only in the UK but also internationally.
