Boost for CBG growth plan
INSURER and financial services company CBG said today it was raising £1.65m from a share placing to fund a growth drive.
The AIM-listed business, which is headquartered in Salford, has placed 1.375 million shares at 120p each to raise the cash.
Its adviser and joint broker Zeus Capital has placed the shares with existing institutional investors. CBG said the new money would, along with increased banking facilities recently agreed with the Royal Bank of Scotland, be used to grow both organically and by acquisition.
Chairman Laurie Turnbull was pleased to have got the deal away in such difficult market conditions.
He said: “It is testament to our proven successful track record that existing institutional shareholders have taken the opportunity to increase their shareholdings in the company at a time when there is turmoil in the financial markets.
“Our objective is to increase earnings per share year in year, and a placing of shares at the current time and in this quantity is consistent with this strategy. The resultant funds raised, together with our new banking facilities, provide us with substantial funding resources to enhanced and grow our business in line with the company’s model of acquisition, consolidation and organic growth.”
CBG offers commercial insurance and also offers some specialist services, including covering professional sportsmen against career threatening injury.
Employing more than 180 people, the company has offices throughout the North West and also in London. CBG listed on AIM five years ago and since then has made no less than 18 acquisitions.
In the six months to June 30 this year CBG’s revenues soared 80% to £5.66m and operating profits jumped 69% to £1.3m.
