Fisher's pre-tax profit rises 53% to £1.88m

Fishers International, the financial services group, continues to record strong growth with a 53 per cent rise in pre-tax profit to £1.88 million from £1.23 million in the six months to June 30th, 1998. Further growth is anticipated and the company is in line to meet brokers' predictions of a rise in pre-tax profit from of £1.5 million to £4.5 million for the full year.

The group is continuing the integration of its operations, which is expected to be completed before the end of the year. It has also embarked on a process of reviewing the identity and branding of all its operational activities so that the various businesses acquired over the past three years are brought together into one common identity, said chairman, Sir Timothy Kitson. Fishers continues to seek further acquisitions. However, chief executive, Mr Kevin Kenny, said none was advanced sufficiently to talk about. The latest results show a fall in sales from £21.9 million to £18.4 million, after including acquisition sales of £1.6 million. Profits were inflated by £200,000 in profits from acquisitions.

Nevertheless, operating profits from the continuing operations increased by 47 per cent, reflecting strong underlying growth. Earnings per share grew from 0.8p to 1.1p and shareholders are to receive a bigger payout with an increase in the dividend from 0.2p to 0.25p.

The loss-adjusting operations had higher profits. This, Fishers said, was due to the full benefits of the Farrell and ATA Group acquisitions that took place in 1997 and which are now flowing through. Also, it received the benefit of increased number of claims notified following the stormy weather at the end of 1997 and beginning of 1998, specially in the Republic.

Clayton Bishop, the claims handling business, had a good start to the year and "its performance was substantially in excess of the result last year". The integration of that company with NLA and DWM is now well underway. The motor inspection services had an "improved start to the year". In forensic claims, Farley Taylor Moore "produced an excellent performance".

But as expected, Homecare Insurance had to contend with a significant fall in premium income due to the higher taxes. Homecare has moved into other areas, such as mobile telephone insurance and the results for the first half were "in excess of expectations". These, said Mr Kenny, should make up for the fall-off by the middle of next year.

Net borrowing increased to £8.2 million from £4.2 million. This is attributed to the increased debt facility of £3 million to go towards the funding of the acquisition of NLA and DWM. Gearing amounts to 45 per cent.