Curtis Banks reports growth in first half following successful acquisitions

6th Sep 2016 08:55

(ShareCast News) - Past acquisitions drove a sharp increase in operating revenues at Curtis Banks Group, a provider of self-invested personal pensions (SIPPs) and small self-administered schemes (SSAS), even as the company adjusted to the impact from lower interest rates.Operating revenues increased by 44% at the half-year stage to £10.8m, while operating profits rose to £1.6m compared to £1.4m in 2015.According to the chairman, Chris Banks, growth in revenue and operating profits during the period reflected strong organic growth and the contributions from the pension books from Friends Life and the Zurich administration contract which completed in 2015.During the reporting period the company also acquired Suffolk Life, but its contribution to the company´s results was limited because the transaction only went through on 25 May.According to the board, the purchase of Suffolk Life in Ipswich was the firm's most "significant" one during the period.Curtis Banks said acquisition would boost revenues in the second half of 2016 and into 2017. When combined with the acquisition of Pointon York SIPP solutions in October 2014 it would also secure its position as the largest independent full SIPP provider in the UK.Furthermore, in July 2016 the company acquired of a book of 5,000 SIPPs from European Pensions Management bringing the total number of SIPPs currently administered by the Group to over 72,000.Out of that portfolio 67,161 were administered during the six months ending 30 June 2016 increasing from the 26,755 administered in the previous year. SASS pensions also went up from 297 in 2015 to 338 this year.Chairman Chris Banks said: "Curtis Banks has successfully integrated the previous acquisitions and is in a very strong position to continue as a specialist administrator in a changing market. We are all very optimistic about our prospects."Basic earnings per share were at 4.38p compared to 5p in the previous period."The recent BREXIT vote should have minimal effect on the operations of the Group. [...]," the company said."The recent reduction in interest rates will present challenges and therefore will put pressure on income. We have seen some easing of interest rates in recent weeks and whilst we are hopeful of retaining margins close to those that we are currently enjoying through a co-ordinated central treasury function, there will be an impact on revenues going forward."Nevertheless, Curtis considered the environment to be favourable for the growth strategy that was in place.As of 1034 BST the share price was falling 6.87% to 303p.