Fishers International, the insurance and financial services group, has agreed with Oriel Group to buy two of its units. Announcing strong growth with pre-tax profit up 58 per cent to £3 million sterling in 1997, Fishers said NLA Group and Domestic Warranty Management, both based at Waltham Cross, Hertfordshire, are to be purchased for an initial £6 million sterling. There may be a further consideration of up to £0.5 million if certain targeted earnings are achieved.
The two companies generated pre-tax profits of £672,576 on revenue of £4.4 million in 1996. Combined net assets amounted to £1.1 million, so there will be a substantial goodwill item. The consideration is being funded by £3 million in cash and the placing of 12 million shares at 25p each. NLA, formed in 1981, provides third-party administration and claims validation services to a range of clients including banks, finance houses and large retailers. Domestic Warranty Management, formed in 1996, provides third-party services to retailers, manufacturers and distributors of electrical and domestic appliances. Explaining the strategy behind the acquisitions, Fishers said its intention is to grow its existing claims management business, both organically and through strategic acquisitions. The latest results show a rise in sales from £36.7 million to £40.4 million. These include £17.4 million gross premiums from its insurance subsidiary, Homecare Insurance.
Reflecting real growth, earnings per share rose from 1.4p to 1.8p. A final dividend of 0.45p has been declared, making a total of 0.65p compared with 0.50p.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)