Lowndes results boosted by Norex

LOWNDES LAMBERT, the international insurance broker, has seen pre-tax profits rise from pounds 4.2m to pounds 5.2m in the first six months of its financial year ended last September, writes John Moore.

Part of the rise came from a first-time contribution from Norex Insurance Brokers, which Lowndes Lambert acquired in May. The first four months of trading at Norex have produced an operating profit of pounds 600,000, just ahead of forecast. Total turnover at Lowndes Lambert was pounds 37.2m, compared with pounds 32.2m. Because of the progress of the group, the board of directors has declared an interim dividend 11.1 per cent higher at 5p a share.

According to the group, the overseas operations have made an increased contribution to pre-tax profit, despite still facing recession. Recent acquisitions, important new business and a cost review have combined to boost the profits of the group's Canadian and Australian companies.

Richard Shaw, group chairman, said: 'We expect further steady progress in the second half-year.'

Fenchurch, the insurance broker, announced that 9.3 million ordinary shares were placed with institutional and other investors and 9.3 million were placed as an intermediaries offer. The move has raised pounds 20.4m after expenses.