CBG warns on profits

INSURANCE broker CBG Group has warned that its pre-tax profits are likely to be “significantly below” expectations as it enters into its end-of-year close period.

The Wythenshawe-based company said that it was also likely to suffer from a decline in revenues. It said that margins were being squeezed in its “highly competitive” core insurance broking division.

Meanwhile, although its financial services division has progressed through the development of its financial planning proposition, a general lack of confidence among clients has meant that revenues in the division have not grown as quickly as it anticipated.

The company added that it had continued to trade profitably since announcing its interim results in September.

“However, while the cost base is in line with our expectations, revenue is likely to be lower than market forecast and as result, adjusted profit before tax is expected to be significantly below current expectations.”