Last checked at 17 Feb 2014 07:00
17 February 2014
The Innovation Group plc
("Innovation Group" or the "Group")
Q1 Interim Management Statement
The Innovation Group plc (LSE: TIG.L), a global provider of Business Process Services ("BPS") and software solutions to the insurance, fleet, automotive and property industries today publishes its Q1 Interim Management Statement for the period from 1 October 2013 to date, in accordance with DTR 4.3 of the FCA Handbook.
The Group has delivered a solid start to the year. Good operational efficiencies have been achieved and further delivery has been secured against strategic objectives, building on a strong year for orders and significant new customer wins in the financial year ended 30 September 2013.
Progress has been positive during the quarter in our US business, with motor volumes from new Tier 1 carriers increasing since December and a number of software projects moving to user acceptance trials.
In addition, on 31 January 2013 the Group acquired the entire share capital of Crash-worth Limited ("Crash-worth") for a maximum cash consideration of £11.75m, of which £5.0m was paid on completion with the balance payable over the course of the period to 31 December 2015. Of the £6.75m balance, £2.0m is contingent on the profit performance of the enlarged UK Motor business in the twelve months ending 30 September 2015. Current annualised monthly profit before tax run-rate is £1.7m.
Crash-worth manages an established and efficient motor repair network. The acquisition will enable the Group to move closer to realising its objective to transform its Motor business into the number one motor claims management business in the UK in terms of client experience, customer experience, operational efficiency and profitability. The combined business will become the second largest manager of vehicle repair claims in the UK, allowing clients to benefit from increased efficiencies. Crash-worth will also add a consultancy proposition for those clients seeking to gain competitive advantage in a fast changing environment.
Chris Ashworth, the founder of Crash-worth and a leading figure in the UK motor claims industry for the last 20 years, will join the Group as Managing Director of the enlarged UK Motor division.
Overall, on a local currency basis, the Board is confident that the Group's trading performance is on track to meet its expectations for the current financial year.
Enquiries:
The Innovation Group plc | Tel: +44 (0) 1489 898 300 |
Andrew Roberts, Chief Executive Officer |
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Jane Hall, Group Finance Director Louise Fisk, Head of Global Communications |
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FTI Consulting | Tel: +44 (0) 20 7831 3113 |
Ed Bridges / Matt Dixon / Tracey Bowditch |
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About The Innovation Group:
The Innovation Group plc (LSE: TIG.L) is a global provider of business process outsourcing and software solutions to the insurance, fleet, automotive and property industries. Innovation Group provides contact centres, repair networks, process management, supply chain and technology operations and decision support analytics to support accident management, repair and estimation and claims management services. Innovation Group has over 800 global clients including AXA, RSA, American Modern Insurance Group, LeasePlan, The Ford Motor Company, Aviva, Toyota and Zurich. The Group processes more than 4 million claims per year with 20 per cent direct claims cost saving achieved. Innovation Group's 2,300 people are located in the United Kingdom, Australia, Belgium, Canada, France, Germany, Japan, India, Pakistan, South Africa, Spain and United States.
www.innovation-group.com