Hyperion doubles profits

27.02.06

27 February 2006: Hyperion, one of the UK’s fastest growing independent insurance groups, today announced another year of solid growth for the year to 30 September 2005. Increasing revenues by 32% and improving operating margins from 10% to 15% has resulted in profits leaping by 94% to £4.03 million.

Highlights

• Revenues grew to £27.40 million , an increase of 32% on 2004
• Operating profit before tax leapt to £4.03 million as compared to £2.08 million in 2004
• Broking operations under the Howden brand reported revenues of £17.96 million, an increase of 31%
• The Group’s underwriting agencies – DUAL and CFC Underwriting – reported increases in revenues of 36% and 27% respectively
• International expansion continued with the establishment of operations in Germany and the USA, and offices opening in Melbourne, Delhi and Bangalore strengthening Hyperion’s existing operations in Australia and India
• Fund raising exercise completed to raise a war chest to fund further expansion in 2006

Commenting on the results, David Howden, Hyperion’s Chief Executive, said: “These results represent an outstanding achievement for our Group against a market background that has brought significant pressure on revenues and margins. Despite difficult market conditions compounded by cost pressures in London arising from increased regulation, we have bucked the trend and achieved another year of solid organic growth.

“In an increasingly complex political, economic and regulatory environment, the rules of the game have changed for businesses seeking to grow their presence globally; they face an ever more challenging range of risks – whether from natural forces, acts of terrorism, increasing regulation or growing shareholder activism – that could have a fatal impact on their success. Insurance is playing an increasingly critical role in helping them to protect their balance sheets. We see tremendous opportunities for companies such as ours with the expertise and agility to move quickly into new products and territories in order to respond to these ever changing needs.”

Hyperion intends to continue its record of organic growth through establishing start up operations in new territories; however it remains acquisitive and is actively seeking suitable business operations to add to its group. Niche venture capital provider B.P. Marsh & Partners Plc, who recently commenced trading on the AIM market, holds a 28% shareholding in the group.