Source www.trendwatch.co.uk 1 September 2004

January 14 2005 is a date that will soon be engraved on the hearts of anyone managing or owning any insurance company, large or small. On that day, almost all general insurance companies, including insurance brokers, will be regulated by the FSA.

Trendwatch publications is, of course, also regulated by the FSA. As a media business, compliance with the massive FSA rule book is considerably less onerous than it is for business that hold client money for investment or insurance purposes. Even so, grappling with the FSA can be like mud wrestling a multi-headed hydra.

To give one small examplee, we recently found out that, to add letters Ltd after ourname )no other changes to the business whatsoever) requires the completion of between 50 and 60 pages of forms and the preparation of much other supporting documentation. The FSA will not even deign to look at it unless it is accompanied by a cheque for 1,500. If everything then seems to be in order, the FSA undertakes to deal with the matter within 6 months.

If, in our infinte naivete, we had failed to realise this palava was a legal requirement, the MOther of All Parliaments has decreed that we would be committing a criminal offence, and liable to be detained at Her Majesty's pleasure at a house of correction and her learned judge's choosing.

This is what the FSA regards as'light touch' regulation which minimises disruption and cost ot businesses.

Now imagine how tricky things can get if you attempt something really complicated such as taking on a member of staff.

The FSA estimates that it already has about 10,000 in the mortgage and general insurance field by the short and curlies. It estimates that at least another 10,000 business will be dragged kicking and screaming into the brave new world of 'light touch' regulation. Around 2,500 insurance brokers will be lightly touched by the FSA on January 14.

But, as everything in life, one mans Kafkaesque nightmare is another man's business opportunity. Which brings us to Broker Network Holdings (BNH)

BNH floated on AIM as recently as May this year (raising 2m in the process), so most investors will know little about it, if indeed they've heard of it atall. We're recommending it because we feel that burgeoning profitability will soon make it a lot better known.

As the name suggests, BNH exists to build a network of independent insurance brokers, all operating within the BNH framework. This follows a path wellbeaten by IFA's, accountants and dentists. BNH is the longest established player in its field and believes that it has a stronghead-start, and a great deal more credibility than other 'me too' imitators.

The system works like this: as an independent insurance broker, you undertake to pay 95 a month to BNH. You also undertake to pass all your insurance business premiums through BNH. BNH places the insurance business with the giants such as AXA, Norwich Union, Royal and Sun Alliance and Cornhill. The members receive enhanced commission from the insurance companies because of the preferential status granted to BNH. Since BNH deals with the placing of the insurance, this greatly reduces the credit risk of the individual members.

BNH takes 1.5% of the premiums from its members and, in return, provides members with a number of valuable support services, including access to Lloyds of London, centralised back-office IT support, marketing assistance, access to e-commerce, staff training and development, business management and monitoring... and FSA compleance support.

BNH is also prepared to purchase broking firms outright where the opportunity presents itself. There are believed to be a large number of small owner-managed brokers where the owner is approaching retirement. For many of them selling theri business to BNH, typically for around 0.3m, rather than grappling with the FSA, is probably an attractive option. So far BNH has acquired 9 such brokers.

Since it was founded in 1994, it has absorbed 133 brokers into its network and plans to acquire about 90 more over the next 5 years. Out of the estimated 19bn paid in insurance premiums in the UK every year, an est 80% is handled by insurance brokers. Most of this goes to through the big brokers, but about 3bn a year (typically commercial rather than personal business) is processed by the 2,500 small so-called 'community brokers' that form the BNH network.

hat represents the extent of BNH's market pond.

At time of floatation, BNH est that no more than 12% of its target broker had aligned itself with any particular network. Clearly there's plenty of scope for growth.

The company is already profitable. Its last full year results were published in July and showed a profit for the principle trading subsidiary - the PLC holding company had not yet been created - of a record 0.77m up rom 0.70m. 27 new members were taken on.

Brewin Dolphin reckons it will make 1.77m this year, rocketing to nearly 3m in 2005-06. If these estimates are correct, it puts BNH on a forward p/e of 6, which is extremely low for the sector, especiallyfor a company whose profits are growing at such a rapid rate

BUY

Great post legend,

Glad to be on board! Just wait until people get a wiff of this one, seems to be a well run company with plenty of upside.

A note of caution today though:

"Financial stocks, particularly insurers, were under pressure. JP Morgan issued a negative sector note on insurers, arguing that 'high cost bases' are the main reason life insurance in the UK will show limited growth. The broker reiterated its 'underweight' stance on Prudential, Friends Provident and Legal & General, and its 'neutral' stance on Aviva" (MoneyAM homepage)

Not to sure if this will have any impact on BNH, any thoughts? Can't believe the tiny volume that this stock is trading on, surely people will stand up and take note soon!

Thanks dawsinho,

Glad to see someone start posting things on here...I reckon when results are out, there will be fund managers buying in it.

I sort of work in insurance myself and realised that small brokers would rather pay someone like Broker Network 100.00 a month to do all of their compliance etc rather than pay a Compliance Manager 20k per year (up north). The more I look at this, the more I like it.

I noticed that when the price went as low as 50 odd p, the directors were trying to get as many as they could. Also, look at the past 4 or 5 acquisitions, they were made (bar 1) at the 1st of every month.. and the chief exec makes a statement commenting on how well things are doing. He doesn't have to do this.

There are not many shares around, only 2 market makers: Winterfloods and Peel Hunt and when my broker rung up yesterday for another of his clients, they couldn't get any... and there were no sellers. Keep them till the results and after January and see where they are then ;-)

Well done for coming on board sir.

Thought i'd include a chart!

Sorry for not answering your previous question... I think that because everyone needs insurance, whether that be Buildings and Contents, Life Cover, Accident and sickness etc they will always need to buy it. It is important to note that Broker Network is not an insurer and therefore any (dare i say it) Terrorist attack will not hit the company as hard as say an insurer that bears the losses.

Even through sept 11 and the aftermath, the company has been a profitable survivor.

Investors Chronicle tipped this about 2-3 months ago as a buy, I can't see them tipping them as a sell now and plus, they will do a report on them after the results come out as an update on their past recommendations. Hopefully then, this will get some interest.

from my knowledge broker network is well run and has a good reputation. however the downside is the usual one in that a good smaller company does not necessarily grow into a good larger company.
i do not like the idea of BN buying insurance brokers. insurance broking is very much driven by the proprietors...and, i can tell you, profit margins are very narrow after deducting a fair whack for the proprietors.

life under the FSA will be horrendous coupled with enormous problems over professional negligence insurance as a mounting flood of fault claims build up against insurance brokers. such claims will arise as insurers take a much tougher line on policy claim payments.

i always envisaged that insurers would cease paying commission to insurance brokers...leaving the broker to extract a fee from the client. rich remuneration would then be more difficult.

sadly brokers (some) small,large and very large have not dealt correctly with their clients over the correct leval of premium.....and certain classes of client have been misled over the leval of remuneration received by the broker from the insurance company.. the FSA WILL SEVERELY SORT OUT THOSE ANTICS . thus some brokers will lose a hefty (wrongful) income stream.

Broker Network should stick to providing a network for brokers and cease buying insurance brokers

Hi MPW 777, I really think you are missing the point here sir

For example, one of the main catalysts for Broker
Network floating was to take advantage of the fact
that many brokers will not want to spend their time
dealing with the FSA and this is why Broker Network
should see their performance improve so much from
January.

Obvioiusly you have made up their mind as to how
things should be done. However, if things are going to
be so tough for brokers why bother providing the
network?! Broker Network may as well just pack in if
this 'doom merchant's' analysis is accurate!!!

It is good that you are involved in discussion as research I already haven't done is always welcomed

hi legand 290782

perhaps it is your goodself that has missed the point.....my point was that i was not in favour of BROKER NETWORK buying the actual business of insurance brokers. that action results in the valuable and interesting activities of the broker network being diluted by the fortunes and/or misfortunes of the insurance broking sphere.

i drew attention to the horrendous -and i mean horrendous- trading conditions which will apply to insurance brokers under the FSA. thus why buy insurance broking business and suffer extra management problems when one can concentrate on running an efficient,effective and profitable net work business.

i pointed out that the operating profit margins of insurance brokers will fall once the FSA start to bite.

i commented that the odds are against a good smaller company growing into a good (profitable/sound capital based )larger company.
sadly throughout my business life i have seen nearly all entities focus on turnover and not that bottom line figure on the profit and loss account.
NEEDLESS TO SAY, but i will say it, I DID NOT MAKE THAT MISTAKE.

I STARTED MY POSTING NO.5 BY STATING THAT BROKER NETWORK WAS WELL RUN AND HAD A GOOD REPUTATION
I FINISHED BY DECLARING THAT BROKER NETWORK SHOULD NOT BUY INSURANCE BROKING BUSINESSES BUT SHOULD STICK TO THEIR NET-WORK ACTIVITIES.

IN THE LIGHT OF ALL THAT HAS BEEN STATED IT IS OBVIOUS THAT THE FSA HORRENDOUS CONDITIONS WILL PROVIDE A VERY GOOD REASON FOR INSURANCE BROKERS MOVING INTO THE BROKER NETWORK services............so why dilute company capital and management time and expertise by buying the actual business of insurance brokers.

DO YOU AGREE???????????????????????????????!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

There is no need to get arsey sir using 31 question marks and 33 exclamation marks to ask one question ;-) lol!!

I totally agree that when the FSA get involved usually someone else ends up out of pocket i.e. the Joe Bloggs Insurance Broker. I am a mortgage adviser myself and as you probably know soon it is to be regulated by the FSA.... it has been a nightmare these past few weeks making sure everything is in place and fully compliant. This has cost the company I work for money for me to check these things when I could have been seeing clients.

You are right that the company is well run, I have made sure of that before I bought, spoke to the FD and to Brewin Dolphin, researched the website etc. The forecasts look feasible and the business all being well should grow. No matter what company you yourself decide to pick, there are always going to be reasons not to buy it otherwise you will have an awesome share. Even when I held asos at 7p, i was thinking to myself how easy it would be to immitate the site and set up something similar and how rising interest rates affect retail sector..

The one thing that is important (although yes I do agree it uses a lot of capital)is that Broker Network buy the insurance broker on their own stated terms and you would trust that they wouldn't be buying any 3 legged horses. It is ok having cash in the bank.. and I agree yes it can easily be eroded by wasteful acquisitions. The acquisitions in the past have been good so far, so I am not overly concerned at the moment.

Have you bought any??

I am very happy to hold as there is value in the business and it is generating cash. I certainly think there are a lot worse shares to be in at the moment!!

I don't mean to offend anyone by any of my posts, I would like to make that clear.

I am happy with what i see, dont you think??

Yes. Rather interesting though how sp went up 3 points on no volume.

Like I have been saying all along.. massively undervalued, not much stock around. Results expected to be good... in line with Brewins expectations. People were buying in yesterday...certainly not any of my mates, perhaps a friend of the auditors or something!!!! LOL

Anyone that listened well done... plenty more to come!!!

Sorry Legend, didn't join you on TES or BNH. What a fool. Anything catching your eye at the moment?

Profitmaker...plenty of upside left in this one imho just starting to warm up.Results not until end of the month.

currently holders of bvm and toa... think bvm very undervalued. toa's results not as bad as price hammering suggests.

i really think these are worth 1.50 even now....good business model.

Legend, I bought into this on your recommendation at 75p after your recommendation on TES & am very happy with what I've seen so far. It's broken through the 1.00 barrier on the bid price for the first time this morning & still people continue to buy. I'm looking to get out at around the 140 mark & wondered if you had any idea when it might reach there?

Any idea whether they are going to pay a dividend?

Thanks for your tips & postings which are very valuable to me, you really are a legend!

I have to say tanks to LEGEND AFTER YOUR RECOMMENDATION,,,appreciate any other reccomendation your are the best LEGEND TANK YOU

Thanks guys for support. I said in a previous posting that if these weren't a pound by christmas I would show my backside to Leeds Town Hall steps, so I am more relieved than anything. LOL

I agree with sandrew64, plenty more upside from these IMHO as well. Even if results are not outstanding, BNH are still undervalued, but I can't see how the results will be bad. I think people will really start buying in after results.

Yorkshire T, why not sell at 1.50??!! I think now, there is no reason why the company shouldn't be 1.50. So just watch over the next month and see what happens.

back up where we belong!!!

Broker Network Holdings plc
30 November 2004

30 November 2004
FOR IMMEDIATE RELEASE


Broker Network Holdings Plc
(AIM:BNH)

Interim Results for the eight months to 31 October 2004
68% increase in profit before taxation
9 acquisitions completed

Broker Network Holdings plc ('Broker Network' or 'the Company'), the network
organisation for independent community insurance brokers, today announces its
interim results for the eight months to 31 October 2004.

Financial highlights

*Six months ended Six months ended % Increase
31 October 2004 31 October 2003
'000 '000

Turnover 3,747 2,140 +75
Operating profit before goodwill 764 337 +127
amortisation
Operating profit 573 337 +70
Profit before tax 709 422 +68
EPS - fully diluted 3.41p 1.88p +81

Operational highlights

9 acquisitions completed from within the Network
number of Network Members increased 4% to 138
good market conditions for new Members and further acquisitions
Gross Written Premium approaching 300m per annum
strong operating cash flow
strong margin improvement
overall performance in line with plans

* The interim results for the eight months ended 31 October 2004 are presented
in full below. In addition, the results for the six months ended 31 October
2004 are presented to aid comparison with previous and future periods.

Commenting on these results:

Faisal Rahmatallah, Chairman, said:

'I am delighted with the strong performance of the Group in its first period of
trading on AIM. The network continues to expand, margins are growing and the
acquisition of Members' businesses whose principals wish to exit the industry is
well under way.'

Grant Ellis, Chief Executive, said:

'The record performance in the period reflects the continued success of our
network model. Our focus now is to build a solid platform through improved IT
and management on which the acquired businesses can grow.'

Broker Network 01423 877833
Grant Ellis, Chief Executive
Julie Hale, Group Finance Director

Brewin Dolphin Securities
Mark Brady 0113 2410130

Buchanan Communications 020 7466 5000
Kelly-Ann French 07958 972164



FULL STATEMENT BELOW

CHAIRMAN'S STATEMENT

Introduction

We are very pleased to present our first interim results following our
successful flotation on AIM on 10 May 2004. Overall performance has matched
expectations, with an increase in turnover of 75%, an increase in operating
profit (before goodwill amortisation) of 127% and an increase in profit after
taxation of 81%. We have completed a further five acquisitions of brokers from
within our Network Membership, taking the total number of owned brokers to nine.

The interims presented here are for the eights months ended 31 October 2004.
However, to aid comparison with previous and future periods, we present also the
results for the six months ended 31 October 2004.

Turnover has increased as a result of organic growth and acquisition of brokers
to 3.75 million, representing an increase of 75%. Operating profit has also
increased significantly to 0.77 million (before goodwill amortisation),
representing an increase of 127%. Operating margins have increased from 15.8%
to 20.4% (20.9% in the eight months ended 31 October 2004). This is the result
of a 31% increase in Network income compared with a 21% increase in expenses
along with the improvement in operating performance of Broker Network London
Markets (the subsidiary which places Members' insurance with the Lloyd's and
London markets).

Profit after taxation and minority interests has increased by 81% to 0.53
million (0.69 million for the eights months) from 0.29 million. The minority
interests relate to a 24% stake in one of the acquired brokers which is still
held by the former principal.

Cash inflow from operating activities was 1.17 million and overall cash inflow
for the 6 month period was 2.85 million after the receipt of net proceeds from
flotation of 2.17 million and spending 0.43 million on acquisitions.

The Broker Network

Network turnover increased by 31% to 2.73 million and operating profits
increased by 71% to 0.75 million.

Member numbers have increased in line with our plans and stood at 138 at the
period end. We have recruited a net five new Members in the period; thirteen
joiners, five Members who merged with other Members and three leavers. The rate
of enquiry in 2004 compared to previous periods has been low but the conversion
rate has improved. There are currently six firms contracted to join before
February 2005 and a further six at an advanced stage of discussion.

Since recommending the Acturis ASP system as our preferred IT platform for
Members, we are pleased to report that 28 Members have already chosen and
installed the new system with a further 19 scheduled to do so by April 2005.
The benefits of moving our Members to a common IT platform with the
functionality of the Acturis ASP system are significant in the long run with the
opportunity for centralising a number of back office functions and the
extraction of consolidated management information.

Consolidating our position in the market

Our track record, Member acquisitions and AIM listing have all enhanced our
profile with insurer suppliers and set us apart from others attempting to
imitate our success. As the market leader and longest established network we
have been able to improve our terms of trade with many suppliers, thereby
improving our revenue, and we expect this to continue into 2005.

Regulation

Statutory regulation for the general insurance intermediary sector by the
Financial Services Authority comes into force on January 14th 2005. I am proud
to report that with the support of our strong Compliance team each Broker
Network subsidiary and every Member has already received their 'licence' from
the FSA.

Broker Network Insurance Brokers

The average gross written premium of the nine brokers acquired to date was 2.1
million . The total acquisition consideration was 3.0 million of which 1.8
million represents expected deferred consideration payments. These figures are
in line with expectations. Turnover of the acquired brokers in the period was
0.92 million. A managing director of these profit centres has been appointed
and the focus is to build a solid platform for growth in all the branches by
installing the Acturis ASP IT platform and instilling appropriate management
disciplines.

Insurance Market Conditions

If 2002 and 2003 were the years of insurance premium inflation, then 2004 has
been the year when premium rates have stagnated. Indeed, there are some sectors
of the market now showing signs of premiums falling slightly. Whether this
continues into 2005 remains to be seen. Many insurance companies renew their
reinsurance treaties at this time of year and the costs of hurricane damage will
likely mean that reinsurers are in no mood to reduce their rates. In addition,
claims inflation continues to rise faster than general inflation (Retail Price
Index (RPI) inflation). However, new capital has been flowing into the UK
insurance market attracted by recent high returns which has undoubtedly dampened
down the opportunity for premium increases. As a result, it is difficult to
predict what the final outcome for rates will be in 2005, however, dramatic
movements in rates are unlikely.

Recent publicity surrounding the Spitzer enquiry in the US has caused all in the
industry to take stock. We have not, and will not, sanction, promote or enter
into any arrangement which is against the best interests of our clients.

Network Development

New Member recruitment for the coming year is still on target, despite a quieter
than usual period in the run up to FSA regulation. We expect to see an increase
in demand in 2005 as firms seek practical support to help them remain FSA
compliant. Our excellent compliance service will, I am sure, be a very
attractive option for many.

In addition, insurers are increasingly reluctant to engage with individual small
brokers due to the higher cost of distribution but are looking to the larger
firms, including networks, to grow their business. The result of this is that
we have access to markets and levels of service which are not available to
individual community brokers which will therefore drive them to consider the
option of network membership.

Broker Network Underwriting (BNU) provides insurance products that are branded
exclusively for Members. We successfully completed the installation of an
Acturis ASP IT system across the whole of BNU earlier this year and operational
efficiencies are now filtering through. We have started a programme of
introducing additional exclusive insurance products for Members and hope to
launch the first of these early in 2005.

Broker Network London Markets places business in the Lloyd's and London markets
on behalf of Members, sharing the commission with Members that otherwise would
be ceded to a third party Lloyd's broker. We recently strengthened our team
with the addition of an experienced London Market broker and this will allow us
to challenge our break-even aspirations as we move towards the year end.

Both Broker Network Underwriting and Broker Network London Markets are
relatively minor parts of our business at present. However, we believe they
offer opportunities to improve services for both Members and insurers which are
capable of growing into important revenue streams for the Company.

Consolidation

The imminent arrival of statutory regulation has fuelled a slight increase in
broker consolidation, but many pundits have been surprised by the number of
firms who have decided to continue within a regulated environment. There is
still little evidence that smaller brokers are exiting the industry in large
numbers. We would therefore expect that, as the reality of regulation starts to
bite, some will look for an exit, but others will look for help, and we're well
placed to provide for both.

Acquisition of Members' businesses

We have now completed nine acquisitions of Member businesses in this calendar
year, and are still on track to achieve our target of twelve before the end of
the current financial year. We have agreed terms in principal with another two
firms, and have a healthy pipeline of enquiries to progress. The recently
appointed managing director is focusing on instilling the disciplines needed to
generate the required growth and margin improvement.

We have installed the Acturis ASP IT system in six sites so far and are
scheduled to complete the remainder by January next year. We are also
introducing a more disciplined approach to running each business than had
existed under their previous ownership - changing the culture from cottage
industry to corporate in the process. The benefits of adopting this positive and
pro-active approach to managing change will become apparent in due course.

Conclusion

The Board wishes to extend its sincere thanks to all the Group's employees and
to its Members. The flotation was an extremely important step in the Company's
development. We believe we have the right strategy in place and are pleased
with the progress made to date. We look forward to the remainder of the
financial year and to the future with confidence. The Board believes that the
Company is well placed to exploit its position in line with its plans.

Faisal Rahmatallah
Chairman
Broker Network Holdings plc


Consolidated profit and loss account
for the eight months ended 31 October 2004


Unaudited Eight Unaudited Six Unaudited Audited Year
months ended months ended Six months ended
31 October 2004 31 October 2004 ended 30 April
31 October 2003 2004


Gross commission receivable 26,634,745 19,563,493 17,307,000 35,473,246

Turnover 4,529,102 3,746,804 2,140,215 4,522,282
Administrative expenses (3,771,299) (3,173,634) (1,803,032) (3,901,165)

Operating profit 757,803 573,170 337,184 621,117
Interest receivable 165,651 136,684 84,855 148,571
Interest payable (1,061) (1,061) - -

Profit on ordinary activities before 922,393 708,793 422,039 769,688
taxation
Tax on profit on ordinary activities (231,779) (177,199) (130,668) (180,914)
Profit on ordinary activities after
taxation 690,614 531,594 291,371 588,774

Minority interests - equity (3,251) (3,251) - -

Retained profit for the financial period 687,363 528,343 291,371 588,774

Earnings per share
Basic 4.62p 3.55p 1.96p 3.96p
Diluted 4.44p 3.41p 1.88p 3.80p

Dividends per share - - - -

All of the activities during the year relate to continuing operations.

The group has no recognised gains or losses other than the results above and,
therefore, no separate statement of total recognised gains and losses has been
presented.

There is no difference between the profit on ordinary activities before taxation
and the profit sustained for the financial year stated above, and their
historical cost equivalents.

During the period the Group carried out a corporate restructuring including the
introduction of a new holding company. The profit and loss account has been
prepared using merger accounting and is presented on a pro forma basis as if the
new holding company had been in existence throughout both the current and prior
periods. Further information is given in note 1.

Consolidated balance sheet
at 31 October 2004
Unaudited Unaudited Audited
31 October 2004 31 October 2003 30 April
2004


Fixed assets
Intangible assets
Goodwill 2,736,364 - -
Other intangible assets - 10,000 -
2,736,364 10,000 -
Tangible assets 372,696 295,444 251,781
Investments 500 - -
3,109,560 305,444 251,781

Current assets
Debtors 11,179,473 11,115,129 12,651,364
Insurance broking account 6,336,349 5,726,357 7,200,169
Cash at bank and in hand 3,186,592 838,044 339,144
20,702,414 17,679,530 20,190,677

Creditors: amounts falling due within one year (17,899,365) (16,651,289) (18,823,574)
__________ __________ __________

Net current assets 2,803,049 1,028,241 1,367,103
_________ _________ __________
Total assets less current liabilities 5,912,609 1,333,685 1,618,884

Creditors: amounts falling due after more than one year (1,580,869) - -

Provisions for liabilities and charges (5,800) (15,600) (3,400)

Net assets 4,325,940 1,318,085 1,615,484

Capital and reserves
Called up share capital 301,298 226,424 226,424
Share premium account 2,095,215 454,322 454,322
Capital reserve 454,322 - -
Profit and loss account 1,463,081 637,339 934,738
Shareholders' funds - equity 4,313,916 1,318,085 1,615,484
Minority interests 12,024 - -

4,325,940 1,318,085 1,615,484


Consolidated cash flow statement
for the eight months ended 31 October 2004


Eight months Six months Six months Year ended
Note ended ended ended
31 October 2004 31 October 2004 31 October 2003 30 April 2004


Net cash inflow from operating 2 887,205 1,166,124 295,880 595,506
activities

Returns on investment and servicing
of finance
Interest received 164,590 140,177 85,749 148,016
_______ _______ _______ _______
Net cash inflow from returns on
investment and servicing of finance 164,590 140,177 84,749 148,016

Capital expenditure and investment
Purchase of tangible fixed assets (234,280) (194,424) (57,494) (123,356)
Proceeds on sale of tangible fixed 24,204 - - 24,204
assets
Purchase of fixed asset investment (500) (500) - -
_______ _______ _______ ________
Net cash outflow from capital
expenditure and investment (210,576) (194,924) (57,494) (99,152)

Acquisitions and disposals
Purchase of subsidiary undertakings (779,142) (431,972) - (704,288)
and broker businesses

Net cash outflow from acquisitions (779,142) (431,972) - (704,288)
and disposals

Corporation tax paid (9,617) (2,046) (8,630) (123,478)
Financing
Issue of shares 2,170,089 2,170,089 - -
Increase/(decrease) in net cash 3 2,222,549 2,847,448 315,505 (183,396)

Notes

1. On 22 March 2004 Broker Network Holdings plc acquired The Broker
Network Limited in a share for share exchange.

On 10 May 2004 the Company restructured its share capital, issued 3,743,706 new
ordinary shares of 2p each in a placing and offer for subscription priced at 71p
each, and floated on AIM.

The total issued share capital of the Company at 31 October 2004 was 15,064,906
ordinary shares of 2p each.

2. Cash flow from operating activities


Eight months ended Six months Six months Year ended
31 October 2004 ended ended 30 April
31 October 2004 31 October 2003 2004

Reconciliation of operating profit
to net cash inflow:
Operating profit 757,803 573,170 337,184 621,117
Amortisation charge 190,380 190,380 - -
Depreciation charge 92,740 73,510 55,669 127,964
Loss on disposal of fixed assets 23,028 - - 23,028
(Increase)/decrease in debtors (364,532) 109,489 (121,913) (294,888)
Increase in creditors 187,786 219,575 24,940 118,285

Net cash inflow from operating 887,205 1,166,124 295,880 595,506
activities

Movement in debtors and creditors shown above exclude amounts relating to
insurance transactions.

3. Analysis of net funds

1 May 2004 Cashflow 31 October 2004


Cash at bank and in hand 339,144 2,847,448 3,186,592

4. The unaudited results for the six months and eight months have been
prepared on a basis consistent with the accounting policies disclosed in
The Broker Network Limited's group accounts for the year to 30 April 2004
and do not constitute statutory accounts within the meaning of Section 240 of
the Companies Act 1985.

5. The figures for the year ended 30 April 2004 have been extracted from
the Broker Network Limited group statutory accounts which have been delivered to
the Registrar of Companies and received an unqualified audit report.

6. The tax charge is based on the estimated tax rate for the year to 30
April 2005.

7. The calculation of earnings per share for the period is based on the
profit after taxation divided by the weighted average number of ordinary shares
in issue, being 14,881,790. The diluted earnings per share has been calculated
using 15,481,790 shares which includes the weighted average number of dilutive
shares in respect of share options outstanding during the period of 600,000
shares. The earnings per share for prior periods are calculated on a pro forma
basis using the weighted average number of shares in issue during the six months
ended 31 October 2004, being 14,881,790 shares.

8. Copies of this interim report will be distributed to all holders of
the Company's ordinary shares. Copies will also be available at the Company's
registered office: Mowbray House, Mowbray Square, Harrogate HG1 5AU. In
addition, this report will be available on the company's website:

www.brokernetworkholdingsplc.co.uk
.

ENDS

This information is provided by RNS
The company news service from the London Stock Exchange

A good set of results it seems to me... just as expected. I really think people will start looking at this company.

legend

Results do look good but probably in line with market expectation. Can you see any reason for positive movement in share price? In the present market, SP seems to drop after results are out, e.g. MPH (Marchpole) and even ASC. In the latter case, there is a positive news flow with the Xmas season and new lines in the New Year. Slight drop today is not really significant because red right across the market and negligible trading. However, well done! although Leeds Town Hall will be missing a treat!

Eric

lol,

Just a bit of profit taking, not even tempted to sell.

My broker remains optimistic, he is probably the best valuer of a firm you could ever wish to meet. His view is more than good enough for me.

The price has hit the mark over the past few weeks, as soon as investors and possibly fund managers start buying in, it will move.

IC are due an update as to their buy recommendation a few months ago.

Thanks for your post eric.

Legend

Good rise this morning, starting to look the quality company that it is.

blimey o riley.

Yes totally agree, an excellent company

Overall, a very good day, I really think now the results are out, there will be big interest in the company. I would hope plenty more to come.

Wouldn't be surprised at all to see it in IC as it was tipped as a buy a few months ago.

Did you get many Balli??

Got in when you first mentioned this share. Bought a nice handful - now up 39%

good lad. Someone said there was a line in the sun today about yesterdays rise... will have to have a look.

Hats off to you Legend. A true winner. What's on your radar at the moment?

BVM a dead cert - from my broker. PDX at a gamble and TOA all look good. TOA and BVM a safer bet than PDX. Not got so many in them (PDX), but have done well so far.

Write up in the Insurance Times 2nd December....

'Broker Network chief executive Grant Ellis said the "signs are good for the future" as the company reported its first results since floatation on the AIM in May this year. The network reported pre-tax profits of 709,000 for the six months ended 31 October 2004, up 68% on the same period in 2003. Membership numbers have risen to 138 members from 133 last year. The network has acquired nine members so far in 2004. Keith Insch, formerly of Hill House Hammond has been appointed managing director of the network-owned brokers.'

OMG Blimey o riley. Thanks for post Balli

i am still not happy ath the continual movement to purchase insurance brokers....there is no worthwhile profit in that area,

management should continue what they are good at...which is being a broker network.

i exspected that a much greater number of brokers would be joining this respected and fair dealing network.

it will be increasingly difficult for so many brokers to:
gain good trading terms from insurers....and good credit periods
place certain risks
meet new business volume terms of insurers
demonstrate to the FSA there facility to search a wider market
deal with the horrendous FSA in the brokers own right

any prudent broker should commence a two year plan to construct his business and accounts ready for a sale in the market place......and see the benefit in better health which on its own will be worth a million pounds

Yes point taken, but you have to admit that the figures do look good.

Wills and Co brokers believe this will be 1.80-2.00 within 1 week someone said on another BB. Some others reckon 4 by 2006... not so sure myself!!!

Did you buy any at 77p when you were commenting on here MPW777?

What are anyone elses thoughts? I welcome any response on here, the price has almost doubled in a month!!!! Surely some happy punters about!!!

hello legend i tanks to you for this recomentation,i enter at 77 now doubble
fantastic,i wish i would put more money that time , but better not to be to gredy sometime,,,,,,,,what you think this company share will reach soon??
tank you again legend very much appreciate for your comment
anymore recomendation?

no i did not buy any at 77p......neither did i buy any Burtonwood Brewery three years ago............or Glenmorangie 15 months ago

i found my peace about two years ago when i moaned about not having bought a particular share . my son asked me to go through my papers and i listed 40 shares that i had firmly thought about buying. some back every horse in the race just so a winning ticket can be produced.

there is a good man at the top of broker network .....and i would like to see him stick to what he is good at ....that is running a broker network

remember a share like broker network does not need much in the way of buyers for the price to go up...and of course the market maker can be doing skilful manoevres with a price in such a small market

if you do not have the last annual report i suggest you obtain it and carefully check as to how many obtions there are as options can severely erode your share value in a small company also find out at what stage broker network take credit for commissions received or receivable....and are they providing fully for the expenses relevent to income received in advance of truly earning it

So what you looking at MPW777 at the moment??

legend 290782 and your posting no. 37

my favourite over the last three years has been PZ CUSSINS. i put my shirt on it and now i have a free tailor for life. if you look at a graph you will see the rise in price but other companies have risen over that period as well. however i feel that PZCOUSINS is sounly based.

the major [very] problem with PZ is that they are not only committed to a final salary pension scheme but sadly they are even very enthusiastic about having a final salary pension scheme for their staff and workers.

contrast that with the fact that in todays news it is revealed that even the government realises it cannot afford to operate a final salary scheme. an average scheme yes .

PZ COUSINS has thus unwittingly terned a major portion of its operations into being a pension company...a most peculiar pension company because directly and indirectly PZ COUSINS really pays all the contribution costs.

even if the scheme ceased to-day liabilities could still be running in 70 years
time.

however i am sure you will not regret a purchase but do not sell as something good will happen to the company one day

Tipped in Shares Mag for 2005... up they go. Anyone else in this stock??

Come on lets hear ya!!

LONDON (AFX) - Broker Network Holdings, one of The Shares Magazine's Tips for 2005, moved up 7 pence to 133-1/2, while a 'buy' recommendation in the Investors Chronicle lifted Media Square 1 pence to 19-3/4.

I,m in these-only a small holding but glad to see the tipsters are waking up to the potential multibagger! this is a company all the IFAs really need to help them survive it seems to me and so can't fail to grow like Topsy. fingers crossed etc.

An excellent day... It seems a time ago when I bought in at 61p the day my broker went to see the company!!!!

I shall post the shares magazine article in due course.

ANOTHER NICE TICK UP TODAY. PEOPLE ARE STARTING TO LOOK AT THIS NOW. MORE TO COME ME THINKS.

MPW777

I found this on ADVFN... I wasn't sure of the terms of Broker Network buying the brokers, but one of the posters put this. What do you think??? :

Farmers Son - 5 Jan'05 - 15:12 - 129 of 130

I like the way they're buying all these small-fish brokers at an average of 1.15 times their earnings!
When was a listed company ever valued at 1.15 times earnings? Thats's basically a return of 87% per year, just because the small fish won't be able to afford the cost of regulated operations, and prefer to be bought out...

Personally I am in agreement with you that it should concentrate on being a network but the above post seems logical!!!

P.S. Haven't had time to look at PZ Cussons... been so busy with work at the mo. On the face of it.. looks like a stable co.

Legend

Legend,

BNH has dropped consistently the past few days. Do you of any reasons and are you still in? Thanks.

Ramu

Ramu, I am still in, not concerned one bit. In fact, all shareholders yesterday should have received a bullish uptodate newsletter. I know you probably want a quick return, but now as of 14 Jan, BNH will start making real money. This will be realised in July's finals. I think sp will then be 2-2.50. Much more to come. This baby has just started

I think mms playing games is the top and bottom of today... Daily movements like this don't concern me. MM's are businesses and will try and make as much as they can. If people are willing to sell in a falling market then they will gladly buy the shares they sold at 1.30-1.40 back from the punter at 1.17 like they did this morning!!!!

SP picking up now.

BNH plenty of cash - 3m and big growth prospects, tipped at 1.265 in shares mag. Wouldn't have thought you could go wrong at this price!!!

Regards

Legend

Legend,

Good to see you still hold yours! Been in and out a few times since you recommended them at 85p... (thanks) If i was a sensible investor i would have bought and stayed put. Looking to get back in funds permitting next week, will wait and see what happens to asc first though.

Happy investing!

Legend,

Thanks for the reply - you just confirmed what I suspected. Anyway, I bought another 5,000 at 1.20 this morning and thanks to you, I am very happy with BNH.

Off topic, are you still in BVM, DA., TND, TOA, POL and what are your price targets? Thanks again.

Regards,

Ramu

Would do it sooner rather than later, rumour is institutional investors looking closely at it ;-) if so happy days.

Yes, I wouldn't leave this share now if they offered me 1.50 for it. I didn't realise the potential of this stock until the past few months. I am at least keeping until july and after. I am very upbeat.

Ramu, sorry for not answering earlier I am still in DA., TND, TOA and POL, not BVM... although I wouldn't put off anyone from holding them. This is all thanks to a broker who for obvious reasons cannot be named. He is in the north west and quite honestly is a genius. The only ones he hasn't given me were PDX and DA.

Well done if you have been in DA. and POL this week, you will have done well.

POL: I went on advfn last week and someone has leeked an analysts research note from Evolution Beeson Gregory when the price was at 1.59 with a price value of 2.27!!! If you didn't know ramu, they are one of the market makers on the stock. When I bought these at the 1.50-155 level, my broker could only deal in t2, so he literally had to pick up the cheque from me the day he bought them!!!

DA. A contract announced yesterday and it is rumoured more are to come. We shall see. All I can say with that one is that the right people are in them i.e. the guy that tipped me PDX - and he has been in them (pdx) since 30p!!!

TND are well worth having, a badly run company at present by all accounts but there may be light at the end of the tunnel. Although it is badly run, the fundies stack up.Cash in the bank, low p/e (6 falling to 3.5 on forecast for next year), has past losses so they pay no tax on profits, etc. Not one I
had come across before but owns some good brands and
forecast to improve performance considerably.

See how you go on Ramu. Please keep in touch. I feel a bit of a lone ranger on this bb!!!!!

I love BNH, think July will be good for them. People think that because the company floated in April that it is a very new company - BNH is not, it has been running since 1994. I posted on the asc bb yesterday the following for anyone considering buying asc:

why buy asc when they are forecast to make 1.5m and they are valued at 54m on a p/e of 100 when you could buy

Broker Network (BNH) on a p/e of 10 (valued at 19.5m) and will easily make 1.5m profit in Julys results, has 3m cash in the bank. I topped up the other week. In comparison, BNH is 2-3 times undervalued than asc when profits are the same...

Which one would you go for ramu??

Legend,

I am currently in BNH, ASC, TOA, IQE, YOO and a few others not worth mentioning. All are in blue except TOA and YOO. I just wondered how far TOA will go - my averaged purchase price was 19p and I am not confident it will exceed 15p in the next 6 months. I am inclined to sell both TOA and IQE and purchase either DA., TND or POL. Ideally, I would like to buy all three but my funds are limited. My time frame is 6 months and I would welcome any suggestions. Many thanks for your tip on BNH - I have been gradually building my position since August and it is now my biggest holding.

Regards,

Ramu

Legend I hold BNH so glad to read your comments on them should be a good year. I am also in Yoo because it's in the right sector and looks a possible multi bagger to me. ACE, PAY and NLR are all good ones to be in although NLR has rocketed up it has IMO got a long way to go long term. I am also waiting to buy HBG and CFG when funds permit-sadly I can't hold everything!! will check out your other holdings. cheers MP

Ramu:

I think TOA will be good.. I bought in fortunately at 8.5p... and are keeping to minimum 15... they could go further, they have been there before, no reason why they can't go there based on current fundies.

Would advise purchasing TND for sure, the other 2 have gone up quite a bit, so may not be worth your while now. If you were to say buy tomorrow they may well retrace a little.

Moneyplus:

I have heard good things about NLR especially since the placing at 2.80 level.

I would appreciate any views/commentry on here. It is always good if others can make money... stick with BNH guys.. a safe way to make money I feel.

I hope none of you paniked out, nothing to worry about. Buyers back in today.

Cheers

legend

The legend can feel 1.50 in his water very soon...

Mentioned in shares magazine today apparently... haven't got the issue. It is only a small article. Can anyone post it please??

legend,

This share is hibernating and the sp is gradually going down. When is the next trading statement? Thanks.

ramu

Not hibernating, just a lack of news flow. If you wait for the next acquisition, it might be accompanied with a statement from the chairman about performance... He has done this with the past few that have been taken over.

In terms of a trading statement itself, I would expect april/may. I can't see it being anything but AHEAD/IN LINE with market expectations.

Shares mag tipped it as a buy yesterday saying that it is only a matter of time before people realise the potential. I took the opportunity to top up yesterday.

Don't panic over these retracemnts. Market Makers are in it to try and make as much money as they can...

Legend

there is a chance that income created by BROKER NETWORK will be subject to VAT.
this will be a disaster as charges to insurance brokers will be as before plus 17% vat. broker network will have to absorb some of this 17% and so their operating margins will be reduced....and it will be more difficult to take on board further insurance broker customers. insurance brokers cannot recover VAT

this move has been announced by CUSTOMS AND EXCISE but, as yet, not been implemented. most of these type of TAX CHANGES come from the EU.

as i have intimated previosly broker network is a logical operation and well led...always providing it ceases its silly aim of actually buying the business of insurance brokers. that silly action results in it being a business of (in part) insurance brokers in lieu of being solely a 'broker network'

incidently other broker network operations will appear...but broker network is established on a solid basis

legend,

Have you sold some BNH? SP down again!

ramu

Not sold one, thinking about adding if I am honest.

Don't worry Ramu, not concerned one bit ;-)

legend,

Take a look at ADVFN board - it has come alive!!

ramu

I do go on there from time to time... i rarely post. Who are you on there??!!

Have just had a look, I was interested to read that bloke called Sharegod was trying to pick up stock but couldn't. One MM wouldn't deal 10k and the other offered 112!!! Shocking.

I have faith, I am not concerned a bit. You will be rewarded by staying in.

Legend

Legend,

I have not posted in ADVFN board for BNH. Anyway, you will spot me easily - I am known as ramu231. What are you known as?

Ramu

why the fall - is anyone aware of the reason apart from profit taking or is it this vat thing - like others I am more inclined to top up but when is the next newsflow due?

I have topped up today...

No reason oxman for fall... the chairman only sent out a newsletter a month or so ago explaining how well things are going...

Nothing to worry about IMHO.

Hi all,

Just to let you know that I am still holding and are happy doing so... just a lack of newsflow has caused the price to drift back.

Story still the same. I still think these are worth 1.50 and intend to hold until it at least gets there.

I am very conservative with my forecasts and I think it is best to look at things pessimistically rather than too optimistically (i hope those two long words are spelt right!!).

Would love to hear from any of you.

Remember, he who dares, wins, he who hesitates don't. Just watch this space..... ;-) As always time will tell.

Regards, the legend

The smart ones will stay in this stock... Looks like there has been interest these past few days.. perhaps an RNS soon??

Good luck all

A bit quiet on the old BNH front... Was glad to see an acquisition on april 1st. Only one more now to reach the target. I am sure they will get it.

Would expect to get some coverage soon as it is coming up to a year since they floated.

Everyone else still holding??

Legend

Hi again all, there is a broker meeting tomorrow which should be good. My broker is attending. I will let you know what went on.

Legend

From all I have heard and read about Broker Network it is a quality company and going places. So why the nose dive over recent weeks?

It wasn't very long ago that this was touching 140

Thank god someone has some sense....

Absolutely right Balli. In fact... my broker went to the meeting on friday. Apparently:

Everything is in line if not better.

At LEAST one more acquisition WILL be announced before results (which means the target WILL be hit) plus there are plenty more in the pipeline.

The acquisitions already made have on average 1.1 earnings instead of the budgeted 1.3, plus the acquisitions have performed much better than expected.

Also since regulation date, BNH has seen more and more enquiries from brokers that have had enough.

All in all, I am happy to hold and see no reason to panic. With 3m cash in the bank the group still look cheap.

If i could afford to I would fill my boots now.

would buy more, but irrational fall in sp puts me off - still think it is oversold and on positive newsflow should bounce strongly, thanks for update from meeting.

the Revenue are taking a fresh approach to certain sevices in the insurance sphere....so there may be a chance that vat could apply to part of the income of broker network. the introduction of an element of vat would not be good

i can say that it is 100% definite that the operating costs and difficulties in the insurance broking world are and will become much much more difficult...if not impossible. if insurance brokers struggle and do not florish financially then that is bad , in the long run, for broker network. in addition the horrible rules and regulations make it much for difficult for broker network to keep a clean nose

insurance brokers and insurers have greatly underestmated the overall impact of regulation vis the FSA

Legend, how do you think introduction to VAT will affect the price in BNH?

Quite simply, I don't think that VAT will directly affect BNH.

Can't wait until the results though ;-)

Legend,

What's your personal target SP for BNH? Thanks.

Ramu

1.50-2.00 100% for sure.... absolutely no reason why it shouldn't be there..

Broker Network Holdings plc
3 May 2005


Date 3rd May 2005
For Immediate Release


BROKER NETWORK HOLDINGS PLC (AIM:BNH)

COMPLETION OF THE ACQUISITION OF WYNDALE INSURANCE BROKERS


Broker Network Holdings plc ('Broker Network' or 'the Company'), the network
organisation for independent community insurance brokers, is today pleased to
announce the completion of the acquisition of Wyndale Insurance Brokers ('
Wyndale') of Tottington, Bury, Lancashire.

The purchase of Wyndale, which was announced on 1 April 2005, has been completed
following approval by the Financial Services Authority of the change of control
of Wyndale.

This is the eleventh acquisition made by Broker Network since flotation last May
and is in line with the Company's acquisition strategy of purchasing the
businesses of network members whose principals are looking to exit or retire. A
condition of the deal is that the purchase price parameters will remain
confidential. However, the Company confirms that this latest acquisition is
broadly in line with the other ten acquisitions made to date.

Commenting on the acquisition, Grant Ellis, Chief Executive Office of Broker
Network said:

'The acquisition of Wyndales is a classic example of the Broker Network business
model in action. Wyndales were a founder member of the network, joining us in
1995. After a successful ten-year relationship, the principals are nearing
retirement and have concluded that a sale to Broker Network represents an
excellent opportunity for them to exit the business at a fair price. For us, we
are acquiring a quality established business in the Bury market on
earnings-enhancing terms.'


For further information, please contact:

Broker Network

Grant Ellis (CEO)/ Julie Hale (FD) 01423 877833

Teather & Greenwood
Stephen Austin, Corporate Finance
Richard Kirkham, Sales 020 7426 9000

Buchanan Communications
Kelly-Ann French/ Eric Burns 01943 883990


This information is provided by RNS
The company news service from the London Stock Exchange

Thanks ramu... didn't have time to put this on this morning

Yes very bullish...

According to my broker, (who attended the brokers meeting) said that BNH had acquired the brokers lots cheaper than they had budgeted, and also the acquisitions have performed a lot better than expected!!!

I think the results will see this takeoff.

they are just too cheap at this price. All IMHO of course.

Thanks ramu... didn't have time to put this on this morning

Yes very bullish...

According to my broker, (who attended the brokers meeting) said that BNH had acquired the brokers lots cheaper than they had budgeted, and also the acquisitions have performed a lot better than expected!!!

I think the results will see this takeoff.

they are just too cheap at this price. All IMHO of course.

All buys IMHO... perhaps tipped somewhere as it is nearly a year since floatation....

perhaps in ic tomorrow. Haven't looked at shares mag today.

A definate keep imho.

You still in Ramu??

Legend,

Still in with 30k but delay in sp rise is frustrating. Will need funds soon to play other stocks, so hoping for a 25% rise by end May. How many do you hold?

Now then ramu,

Was tipped apparantly in City Confidential today.

I hold now 37k shares. I think minimum 1.50. I am at least holding until results regardless because if you hold aim stocks for a year then you qualify for extra relief on capital gains tax. Plus also, fund managers are restricted to what they can invest in and as soon as they report their final results then that is when interest will start........

I wouldn't have thought there is anything to worry about whatsoever, of course IMHO.

It is up to you, but i am waiting for my price and I am sure to get it. I wouldn't put so much of my money into one thing if i didn't think it was going to make me anything.

The markets at the moment are weak and it is becomming harder to make a quick buck like it used to.... so you might as well stay in here!! ;-)

as i have intimated previously BN should stick to providing a"net work" for brokers....and not buy insurance broking businesses

there is the absence of profit in the operation of an insurance broking business....and, i can tell you, there are substantial ,long tail, professional negligence risks

Anybody out there? Hardly any movement or news on this share.

Hello sir!!

One more acquisition in the pipeline i would hope.... they usually come close to the start of the month.

Still holding as are tnd. Frustrating i know but this is the market for you. I know its not much consolation. They WILL be back I am sure of that ;-)

Buyers around... must be mad to sell at this price.. I think this will shoot very soon up to the results.

MPW,

Were you ever an insurance broker??

I like the look of this one legend but given the state of play in the small caps market i`m not sure wether to have a punt or not.There are some very good profitable companies out there not getting the increase in their share price they and us investors deserve.
DB66

Couldn't agree more. I always pick good value stocks but the last few months has seen them drop back. I was in these at 61p and intend to hold until 1.50. I would think that it wouldn't be long after the results next month (12 july)

The growth in this company is phenomenal. I think its on a p/e of about 6. It will have approx 3-4m cash at results I would think.

If you are a shareholder doughboy, you would have got the recent broker network newsletter. This was very bullish from chief exec and the chairman.

Any sort of buy in will send this baby into orbit. There are not many shares around in this co so it tends to be quite illiquid and moves around on anything. It got tipped by shares mag as a play for 2005 shares of the year - this was at 1.28 in december. there has been no negative news about this whatsoever. It also got tipped a few weeks ago.

It is a must buy imho.

No i`m not a shareholder legend but i think after reading your last comments i am going to be.
Thanks
DB66

legend 290782 your posting 89.......the answer is YES....in fact top of the pops until i jumped out prior to the arrival of the big fool known by others as the FSA

a friend of mine was one of the first brokers to enter the broker network...and he speaks highly of them.

as i have intimated previously in this posting i am not enthusiastic in BN buying insurance brokers. BN should stick to what they know and are good at.. that is being a broker network

if you have any insurance queries or problems just post them

incidently my career in insurance broking was very rewarding indeed....but those days are now gone

Thanks for this MPW.

I very much appreciate your views on here. I totally take your comments on board that Broker Network's core business is its forte and that yes it perhaps should concentrate mainly on this if it wanted guaranteed and secure growth.

However a plus point of the acquisitions could be that acquiring the brokers could well be a good growth strategy for the company. So it looks to shareholders that the company is really trying to grow its business. Do you remember a company called Park Row?? This had the same model for IFA's... it was so successful that it got taken over.

I think BN has been around since 1994, so we are talking about a well established company here. I am interested in your friends take on BN (i.e reliability of the co... etc).

Believe it or not MPW I am a Mortgage Consultant (just passed my fpc exams last week too by the way!!!) and I have the insurance qualification to sell Buildings and Contents for clients. But why would i want to do that when the firm i work for will receive approx 25 commission and I would have to do a Suitability Letter, fill out the application form and all the relevant paperwork... It's just not worthwhile.. So I only advise on one company - Paymentshield. It's quite quick processing and they have a model suitability letter. Ok it may not be the best but at least it is an option for the client.

The FSA are killing us, and now mortgages are regulated by them which is causing me a lot of hassle. I honestly don't know which way this industry is going do you?????!!!!!

I do have to admit that my knowledge of the insurance industry is limited, but I sure as hell know a good value company when I see one.

Ramu, if your selling I might know someone that will buy them off you...

MPW,

I see your pzc have been flying of late. I take it drinks are on you then??
I thought when they went to 11 they seemed a bit cheap.

legend 290782 posting 95

put your money on the sound PZC....the A shares have been given voting rights and all the preference shares have been redeemed

my view is that this makes the company much simpler as a target for a takeover

the very full documents issued by PZC , by law, in connection with the events of the above first paragraph revealed the fullest details of the huge concentration of the share holding...which again shows how easy it is to make a bid for the company

i have a huge holding direct and indirect in PZC...it is a sensible share to hold and just be patient for that takeover to arrive

Finished up 14.55-95 and going strong!!

If you like good value stocks have a look at TND's balance sheet. Although a bearish chairman's statement it has doubled eps in a year and its profit. KBC forecast that 3/4 of its market cap will be in cash next year!! on a p/e of 4-5.... this has takeover written all over it too.

I have a small holding of pzc but most of my money is in this - all 36500 odd shares of this!!

Well i`ve joined you today Legend,this does look a great value stock but there doesn`t seem to be much interest on this BB ?
DB66

I can honestly say that this is so small that it has been overlooked. There was only 20% of the company that was floated and so it tends to be very illiquid (i.e. moves on small volumes). Hold these for 2 months and see what price they are.... trust the legend!!

If you look at it like this:

Shares mag tipped this as top share for 2005 at 1.27...

Nothing has changed in fact, You assume everything is in line with expectations
as the company would have to have said by now...

If anything things are better than expected because my broker went to a presentation by the company and they said the following:
'The acquisitions have been acquired 30% cheaper than budgeted, and performed much better than expected'...

Cash will be strong...

House broker Teather and Greenwood have a 1.30 price tag on these and will be reviewed on results...

I think you will be ok with these!!

I can honestly say that this is so small that it has been overlooked. There was only 20% of the company that was floated and so it tends to be very illiquid (i.e. moves on small volumes). Hold these for 2 months and see what price they are.... trust the legend!!

If you look at it like this:

Shares mag tipped this as top share for 2005 at 1.27...

Nothing has changed in fact, You assume everything is in line with expectations
as the company would have to have said by now...

If anything things are better than expected because my broker went to a presentation by the company and they said the following:
'The acquisitions have been acquired 30% cheaper than budgeted, and performed much better than expected'...

Cash will be strong...

House broker Teather and Greenwood have a 1.30 price tag on these and will be reviewed on results...

I think you will be ok with these!!

Thanks for the info Legend sounds good to me!
If these come good i will buy you a drink,hey what the heck you can even have the wife.lol
DB66

lol!!! Well, there is no real reason why not.. they will have approx a quarter of their market cap in cash and low p/e with good prospects. It is the second largest network in the country. i can hopefully see very very good things around the corner.

I have held these since 61p and do not intend selling for any less than 1.50...perhaps keep these even longer...

All the trades this week and the back end of last week were buys ,even if volumes were small.The only problem i can see now is the falls on Wall Street having a knock on effect on the home markets and in turn damping down the gains we could possibly get from the BNH results.
Fingers Crossed
DB66

Not concerned one bit doughboy...

I have been assured these results will be good....

Have been watching these last 6 months - like the feel of it, but will continue to wait, at least until next results. Rightly or wrongly, insurance brokers are tainted because of past actions by some and management of all the acquisitions will take some handling. They look to be focussing on the right areas (e.g. compliance, integration of systems) and so far they seem to be doing a good job, but balance sheet shows essentially a "fresh air" business. Few real tangible fixed assets and cash probably belongs to the insurance companies shown within creditors. Turnround when it comes may be swift, but one bit of bad news could still hit them hard. Would be happy to hold if I had any, so good luck with the results legend.

Well here we go Legend, a nice little rise today i`m not sure how on only 1 buy of 500 shares but who cares as long as it goes up.
db66

I spoke to a broker today at teather and greenwood and she backed up what I pretty much said - this is worth more than 1.30!! The broker said that she thinks these are good. I asked for the research note that says based on no more acquisitions the company should be worth 1.30ish, but couldn't give it to me, so I am waiting for this from my broker. If i get anything I will post it on here.

Just wait until the results and I am pretty sure they will trade up from here.

All imho and dyor

Thanks for that Legend.
DB66

Look what I found boys and girls.... ;-)

Broker Network to Implement Trintech's ReconNET to
Improve Internal Financial Controls and Operating
Efficiency; Network of Community Insurance Broker
By Business Wire




DALLAS & DUBLIN, Ireland June 27, 2005 Trintech
(Nasdaq (NASDAQ: news) :TTPA), a leading provider of
transaction reconciliation and payment infrastructure
solutions, today announced that Broker Network
Holdings PLC has selected ReconNET to automate the
verification and reconciliation of its central
depository account and insurance premium payments
between its independent insurance brokers and
insurance providers. In addition to streamlining
internal operations, ReconNET will also strengthen
Broker Network (LSE: BNH.L - news) 's financial
controls.

Broker Network Holdings PLC provides service to more
than 130 independent, community insurance brokers in
the UK that specialize in commercial insurance for
small businesses. Broker Network provides its brokers
with the benefits of collective buying power as well
as offering access to a wider range of insurers.

In January 2005, the Financial Services Authority
(FSA), an independent non-governmental body, was given
regulatory oversight over the insurance industry in
the UK. Insurers and brokers must now be authorized by
the FSA, which requires compliance with a number of
new regulations, including one that requires brokers
and providers to demonstrate that they have adequate
financial controls in place.

"The functionality and flexibility of ReconNET
addresses our need to automate reconciliation and
exception management processes to enable us to grow
the business more cost effectively. It will also help
us comply with industry regulations in a more
efficient manner," said Julie Hale, Group Finance
Director, Broker Network. "The gains we expect in
efficiency and financial control will improve our work
practices and overall operational effectiveness."

The installation of ReconNET will automate Broker
Network's reconciliation procedures, increasing the
efficiencies of finance staff, and provide effective
risk management and reporting for its daily and
month-end operations. Additionally, ReconNET will help
Broker Network better meet industry compliance
requirements through built-in detective and
preventative financial controls.

"Industry regulations like FSA have necessitated the
move to automated transaction reconciliation to reduce
manual processes and mitigate risk," said John Harte,
General Manager of Trintech's Funds Management Systems
Division. "Companies like Broker Network rely on
ReconNET because the solution supports financial
accountability, audit and reporting requirements for
data integrity through automation and a closed system
architecture."

About Broker Network Limited

Formed in 1994, Broker Network is a network of over
130 independent, community insurance brokers, known as
Members. The Members, who retain their own trading
brand, are contractually obliged to place all of their
general insurance business with Broker Network. Broker
Network in turn provides support services to Members
including: IT, training & regulatory compliance. The
service provided by Broker Network makes it possible
for community brokers to compete, at least on equal
terms, with other larger brokers for the insurance
business of their target customers, which are
predominantly SME businesses. Additionally through the
network, Members have access to a greater range of
insurers and thus are able to negotiate better
remuneration terms than they could otherwise obtain
independently. Likewise, Broker Network also provides
insurers with a channel to obtain business from
community brokers. For more information visit
www.brokernetwork.co.uk.

About Trintech FMS

Trintech Funds Management Systems (FMS), a division of
Trintech Group, provides comprehensive,
industry-leading solutions that optimize enterprise
funds management including the ReconNET reconciliation
product suite, Bank Fee Analysis, and DataFlow
transaction data network and services. Trintech's FMS
solutions are optimizing performance in nearly 400
leading companies in retail, hospitality, food
service, insurance, banking, government and other
industries, including YUM! Brands Restaurants, Foot
Locker (NYSE: FL - news) , Radio Shack, 7-Eleven,
Whitbread Group, Verizon Wireless, Kroger (NYSE: KR -
news) , Regal Entertainment, Budget Rent A Car,
Wendy's, Farmer's Insurance Group, and the University
of Missouri. Trintech FMS is headquartered in Dallas,
and can be contacted at 972-701-9802 and on the web at
www.trintech.com/fms.

About Trintech

Trintech is a leading provider of transaction
reconciliation and payment infrastructure solutions to
retailers, financial institutions, payment processors
and network operators globally. Built on 18 years of
experience, Trintech's solutions manage each area of
the payment transaction cycle from authentication,
authorization, settlement, dispute resolution and
reconciliation - enabling its customers to reduce
transaction costs, eliminate fraud, minimize risk,
maximize cashflow and increase profitability. Trintech
can be contacted in Ireland at Trintech Building,
South County Business Park, Leopardstown, Dublin 18
(Tel: +353 1 2074000), in the US at 15851 Dallas
Parkway, Suite 855, Addison, TX 75001 (Tel:
972-701-9802), and in the UK at 186-192 Darkes Lane,
Potters Bar, Hertfordshire, EN6 1AF (Tel: +44 (0) 1707
827000). www.trintech.com.

Contact

Trintech FMS, Dallas
Donna Martinez, 972-739-1611
donna.martinez@trintech.com
or
Trintech Group (NASDAQ: TTPA - news) , Ireland
Breda Leonard, +353 1 207 4164
breda.leonard@trintech.com

Thanks legend, I got back in these last week- have been in the us for the last 3 months. Should see these go good for the results. i would expect everything to be in line if not better...

Good Luck all.

Marco

Legend,

The last time you threatened to show your backside to the Leeds Town Hall steps, the SP moved significantly. Maybe you should do the same this time with 1.50 target and 12 July deadline! LOL!

Ramu

Ok, I will do it then just for you Ramu!! Here, right now on money am... if these are not 1.50 by july 14th (give me a couple of days extra please!!) I will show my backside to leeds town hall steps.

I am glad you are going to keep these for just a little bit longer. Even if you sell at say the 1.20 level, you will still make a much better return from where they are now... I can't see there being anything wrong with the results otherwise the company would have had to say...

I spoke to a lady broker at t and g... and she really likes them. Once they have proven what they have said all along, then as a broker they will really start pushing these.

For CGT reasons I am going to hold these anyway until august (when I first bought these last year). If you hold aim stocks for more than a year you qualify for extra relief (well worth doing imho)

Wraz, welcome back... hope you had a good time. Not missed much with the markets. You probably sold at a good price. But I think you have made a wise choice getting back into these.

Absolutely no sellers around at the mo. Will be interesting to see what friday brings ;-) perhaps an acquisition... it is the 1st july and the co has stated at least one more before results.... enjoy the ride everyone

Another steady move up for the SP today,not long to wait now Legend.
DB66

Nope, I know someone that is trying to pick up a few and having no luck...

Any half decent results, these will fly....

No sellers around... just watch this baby move soon!!

That 5k was clearly a buy imho...

Legend,

The 5k was mine and it was a BUY! More to come.

Ramu

Good work young man.

Jamesgkenny tried to pick up some on another board ;-) and had difficulty. Trust me when I say this, his broker knows exactly what he is doing. I found out indirectly when I bought asc (asos) at 7.75p that he was buying as many as he could at 6p before me. 6 months later they were 85p!!! This wasn't the first company this has happened to either that he bought.

He thinks these are worth 1.70 and has absolutely boat loads of them!!!!!

The management is good, the right people are in em, they have cash, generating cash, potential for growth is massive. Sit back, relax and enjoy.

I think in total i have bought 5 lots: 24k shares at 61p, 10k at 75p 2k at 1.10 and 1500 at 1.30!!! - The one at 1.30 I tried to be smart and trade off the results as the price was flying!! I didn't want to sell at a loss so i kept em!!!! In the scheme of things, my average price si very low.

What else you got again ramu??

And up they go again....

Can't see why anyone would want to sell these!!

Much more to come imho.

And up they go again....

Can't see why anyone would want to sell these!!

Much more to come imho.

Another nice move up so far Legend. I`m glad you brought these to my attention as i would never of known about these without your posts.
db66

No problem, of course all of the above are imho.if people choose to listen and make the decision to buy and make money, good on them.

I will let you sell when you want...i am not selling for a long time ;-)

I have to admit i probably will be a short term holder even though i believe in the long term prospects of the company.I am a novice at this game and i have to admit my portfollio is well down ,but i am learning all the the time and i have let quite a bit of profit slip through my hands .I have definately learn`t that a profit is not a profit untill it is banked.

One thing that does surprise me is the lack of interest or knowledge about this company ,oh well i`m sure it is their loss and our gain.

Many Thanks
db66

Well you were right legend you said there would be an acquisition before the results and it has been announced this morning.Onward and upward !!!
db66

RNS Number:3996O Broker Network Holdings plc 04 July 2005

4 July 2005

For immediate release



BROKER NETWORK HOLDINGS PLC

(BNH:AIM)




ACQUISITION OF FRASER TENNANT HOLDINGS LTD

Broker Network Holdings plc ("Broker Network" or "the Company"), the network of independent community insurance brokers, is today pleased to announce the acquisition of Fraser Tennant Holdings Ltd ("Fraser Tennant"), of Stirling, Scotland.

This acquisition, which is the twelfth acquisition made by Broker Network since the beginning of 2004, is in line with the company's strategy to purchase the businesses of network members whose principals are looking to exit or retire.

Fraser Tennant is the largest acquisition made by Broker Network to date, the consideration being five times that of the second largest. The maximum amount payable under the acquisition agreement is expected to be #2.85m, comprising a deposit and deferred consideration. As at the date of completion, the net assets of Fraser Tennant amounted to approximately #911,000. The consideration multiple is in line with that of previous acquisitions.

Fraser Tennant comprises the businesses of Denny Insurances Services Ltd, of Stirling; Peacock Robertson Ltd, of Glasgow; and Fraser Tennant Ltd, of Perth and Kelso. All companies will retain their separate trading identities in line with Broker Network's acquisition strategy. The businesses will also continue to operate from their existing premises and all employees will be retained. Approval has been granted by The Financial Services Authority for the change of control of Fraser Tennant

Iain Bowie, managing director of Fraser Tennant, will take on the role of Director of Scotland for Broker Network and will play a key role in developing the Broker Network business north of the border.

Commenting on the acquisition, Grant Ellis, Chief Executive Officer of Broker Network, said:

"This latest acquisition represents another major milestone for Broker Network. Although significantly larger than the other acquisitions we have made to date, in all other ways Fraser Tennant has the attributes we look for in an acquisition, with, most importantly, close and long-term relationships with their customers.

This is excellent news for us and for the Fraser Tennant Group. We are particularly pleased to have completed an acquisition of this size, which we believe is a positive indication of the opportunities available to us as a result of our strong acquisitive business model and continued growth.

Our original network model continues to prosper and its unique commitment to retaining the acquired company's local identity along with existing loyal staff makes it a safe, sensible and rewarding exit for the owner of the acquired company."

For further information, please contact:

Broker Network
Grant Ellis (CEO)/Julie Hale (FD) 01423 877833


Teather & Greenwood
Stephen Austin 020 7426 9000


Buchanan Communications
Kelly-Ann French/Eric Burns 01943 883990


Notes to editors:

Financial information relating to Fraser Tennant Holdings Ltd:

* Pre Tax Profits for the year ending 28 February 2005 totalled #156,000

* The initial payment to Fraser Tennant Holding Ltd will be #1,575,000

* The deferred consideration to be paid by Broker Network constitutes eleven

equal instalments of #115,000 with the last two payments to be paid by loan

notes and a further two annual payments of up to #50,000 each dependent upon

future revenues of Fraser Tennant

* Maximum amount payable under the acquisition agreement is #2.85m

* The net assets of Fraser Tennant amounted to #921,000 at 28 February 2005.


This information is provided by RNS
The company news service from the London Stock Exchange



END

Legend,

Re today's RNS, do you think BNH paid too much for the Scottish acqusition? The returns seem so low - about 5% pre tax. I suspect BNH are looking at increased market share and the growth potential of Fraser Tennant.

Also, one poster from another board is of the opinion the SP will level off after the results on 12 July (I think he's referring to the old adage: buy on rumour sell on news!!)

Ramu

Ramu,

Don't forget that although the profit wasn't so much probably due to the owners creaming a lot from the business.

Also, bnh will be able to benefit from economies of scale...

Please also note ramu that grant ellis says that 'the network business continues to prosper'

My eps target is 8.8, so we will see what happens on results day.

AS for the sp... well shares magazine will comment on them as they tipped them as a share for 2005 and I C will too.

Is it me or has everyone had a problem posting on here???

Ramu, bnh will have the choice of 100s of brokers so they must have chose this one for some good reason. Trust me, they aren't so stupid!!

Still hold and think prospects are fantastic for this co...

SP got plenty to go...

Can't wait to see results.

SH

Hi SH, yes totally agree.

Good luck all, lets see what the day ahead brings...

Seem good to me... going in the right direction!!!

I did think about selling before the results but have decided to hang on in there .Another acquisition and i`m sure there is plenty more to come from this share in the future
DB66

Another 2 doughboy....

The results were fantastic imho and plenty of growth to come...

Excellent set of results well done bnh...

Totally agree, I am very happy about the prospects and how bullish ceo was/is.

The new director is very well respected in the industry my sources confirm....

Legend,

Remember post 113, SP to touch 1.50 on 14 July. Oh well, we'll let you off this time unless you have J Lo's bottom and seek regional coverage! LOL!

I'm sure this will touch 1.50 but not sure when or even this year! Good company, good results but very illiquid. If this stock is difficult to buy, then many potential investors will be put off and place their funds elsewhere - I think this is the main reason the SP has not really moved since the latest positive RNS.

Good luck to all investors.

Thanks ramu..

I'ts good to see sp held up well without collapsing after a few sells. House broker has just issued a buy note... and increased forecasts to 2.3m...

Are you still in??

Also, all the press has been positive... take a look at the following article taken from the Yorkshire Post:

One year after listing and Broker Network sees profits soar
Ros Snowdon
Deputy City Editor
BROKER NETWORK, the company that acts as an umbrella network for small insurance brokers, celebrated its first year as a listed company with a sizeable increase in profits yesterday.
The Harrogate-based company has around 140 small high street insurance brokers, known as members, which specialise in commercial insurance for small businesses.
On top of providing the umbrella network, the group also has a scheme to buy up brokers who want an exit and run them for greater profits.
The group now has 14 brokers following the acquisition of a further three companies since the year end on April 30. These include the group's biggest acquisition to date following the purchase of Fraser Tennant Holdings for 2.85m earlier this month
The group expects to make around 10 acquisitions this year and the plan is to build up to 90 businesses over a six-year period.
Yesterday Broker Network's chief executive Grant Ellis said annual pre-tax profits had risen by 73 per cent to 1.3m on the back of a 63 per cent increase in turnover to 7.6m.
Mr Ellis said there were enormous opportunities for the group as only 10 per cent of the 4,500 brokers in the UK belong to a network. Broker Network is the largest umbrella group its closest rival has around 70 firms.
"The concept of networks has become a lot more accepted," said Mr Ellis. "Two years ago many brokers thought they could manage on their own, but now these companies are signing up."
The change in attitude has come about because ten years ago the top 250 brokers accounted for only 25 per cent of the market.
They now account for nearly two thirds of it which means that smaller brokers have come to feel like second-class citizens, hence the need to belong to a bigger network.
The group said that the acquisition earlier this month of Fraser Tennant, based in Stirling, will give it an important entry into Scotland.
A lot of small brokers merely run their businesses in order to take home a decent salary, in other words they only do as much as they need to do to support their way of life.
Once bought by Broker Network, overheads can be cut back and profits increased.
Fraser Tennant is the largest acquisition to date and is roughly five times bigger than the group's second largest acquisition.
13 July 2005

FT did a good write up too...

Legend,

Not sold a single one yet but if cashflow does not improve.....

Can you post the FT article? Thanks.

Hi ramu....

Not the best rns but have just spoke to Buchanan the pr co for BNH on 01943 883983 and have reassured that nothing to worry about.

They are very bullish and were 'surprised' to see the reaction it has had on such fantastic results...

Watch what happens over the next month ;-)

P.S. What's up with the cashflow??!!

Hi ramu....

Not the best rns but have just spoke to Buchanan the pr co for BNH on 01943 883983 and have reassured that nothing to worry about.

They are very bullish and were 'surprised' to see the reaction it has had on such fantastic results...

Watch what happens over the next month ;-)

P.S. What's up with the cashflow??!!

Down again! Can't BNH take a leaf from ASOS on investor relations? About time they changed their PR company and persuade market makers to reduce the spread and make this share more tradeable. Many loss making companies with nothing going for them except hype have grown considerably this year but BNH are down on the back of excellent results!

The value of my investment in BNH has gone down since I bought the shares recently. What is happening here?
I don't wish to be a wet blanket..it is in my own interest that the price should go upwards!

Did you get my email john??
buyers still around...

Hello Legend good to see you back on the board ,i thought you had deserted us.
Even though we have had a small rise today i am little surprised at the poor performance of SP given results and acquisitions made.
I have total confidence in the long term prospects of BNH but it is a little disappointing when you could have sold for a small profit and got back in again .
DB66

Hi, glad to see your still holding doughboy... i am off to the agm tomorrow. Will let you know what is said (if anything)

Plenty of buying interest....

Spoke to Grant Ellis for about half an hour. I HAVE NEVER BEEN AS OPTIMISTIC AS I AM NOW.

He is a very down to earth person and openly admits that running a plc is new to him, but i have absolutely no doubt of his ability to run the company. He is a very smart cookie and knows exactly what he is doing. When a person can look you in the eye and tell you that he isn't/won't be losing sleep about the company he is running, you feel much more at ease about the company you have invested your money in.

The Fraser Tennant acquisition is well worth its money... the broker network name is now well known in scotland and has generated plenty of interest from scottish brokers to contact bnh leading to potentially more members.

I spoke to buchanan initially about the 'sale of shares' and its impact onthe depressed share price. They were keen to introduce me to grant ellis to tell him what people thought. He was on holiday at the time of the announcement and when he came back he thought that it looked quite bad so it was him that initiated the rns to reassure shareholders.

The buyers over the past few days have been institutional. I would predict that this would continue ;-)

I would predict more newsflow over the next few months!!!

if i had more money i would add, I don't so I will hold the ones i have got!!

P.S. Upbeat trading statement

Keep Smiling

Thanks for the information legend,given the statements made today and your conversation with Grant Ellis i think we can all sleep well with this one.
The only way is up (i hope)
db66

Totally agree, don't think i have ever seen such thing as a dead cert in all my life (short as it is)

Legend,

If you wish you can e-mail me on PM. Thanks.

Ramu,

I have sent it... let me know when you get it...

Legend,

Received e-mail and replied.

BROKER NETWORK HOLDINGS PLC

(AIM: BNH)

ACQUISITION OF WHITEHOUSE WOODALL REEVES INSURANCE BROKERS



Broker Network Holdings plc ('Broker Network' or 'the Company'), the network of
independent community insurance brokers, is today pleased to announce the
goodwill and asset purchase of Whitehouse Woodall Reeves general insurance
brokers, of Birmingham.



Whitehouse Woodall Reeves, which has been a member firm of Broker Network for 5
years, will be the fifteenth acquisition made by the Company since the beginning
of 2004. The acquisition is in line with the company's acquisition strategy to
purchase the businesses of Members whose principals are looking to exit or to
retire.



Following the acquisition, Whitehouse Woodall Reeves will continue to operate
from their existing premises and under the same name and brand. All staff will
also remain, with Ian Whitehouse taking on a consultancy role for the coming two
years.



The purchase of the business has been completed following approval by the
Financial Services Authority of the change of control of the business.



Commenting on the acquisition, Broker Network Chief Executive, Grant Ellis,
said:



'The purchase of Whitehouse Woodall Reeves marks yet another successful
acquisition of a member firm, once again proving the strength and viability of
our growth strategy. We continue to purchase both member and non-member firms
across the UK and look forward to further expansion throughout the country.'

Blimey o riley, i think this is institutional investors picking up stock.

a large seller - i think it can only be capricorn at 84p and several institutional fund managers buying stock... at 85p. Market makers make a penny on putting the transaction through.

Either way, we will find out within 3 days.

All imho of course

I did have a bit of a panic yesterday when i saw the large volume of sells but at least we soon found out they found good homes.
The acquisition news released on 1st Sept had no impact on the SP for some reason.I hope they are not expanding to fast,15 acquisitions since the beginning of 2004 is going some and probably more to come before the end of the year?
DB66

Doughboy, look what i have noticed:

I noticed this from results:

Operational highlights



Successful placing on AIM, raising 2.2m net of expenses
11 acquisitions completed as at year end
Number of network Members increased to 139
Progress in line with expectations at time of AIM listing
Good conditions for future growth

Notice number of members 139...

Look at the announcement today... particularly the quote of member numbers since capricorn took over...

Capricorn became a holder in Broker Network in April 1997. Since that time, the
Company has expanded from 20 members to over 150 and has recently reported
record turnover and profits.

It proves member numbers are still on the up since fsa took over. Surely this will boost profit.

Thought someone would have picked up on the increased members... oh well.

Hopefully tomorrow will tell us who are the new holders of bnh. It would be good to see the board topping up... this will support the sp imho.

Any thoughts??

Not a holder, but have followed your comments for some time and had a look today. No price given for the share placing - unlikely to above current price. BNH looks fine on the face of it, but sp performance in 2005 suggests otherwise. Probably me being thick, but still not sure exactly what income streams they have, and the terms of trade for them getting paid. Last figures showed annual turnover 7.5m, but trade debtors over 10m (presumably linked to gross commissions receivable 40m, but still seems a lot). With all the acquisitions, there may also be some operational difficulties in aggregating management information across the group. Could just be that after initial euphoria (placed at 71p in May 2004) a degree of realism has set in and with Capricorn now out of the way they may head north again. I will continue to watch.

I think price paid will be 85p... a discount for institutions sub current sp.

Comments much appreciated.

25k sold and SP drops 5p. Where are the institutional investors?

Hello, good announcement the other day i felt.

Apparently 6 institutions bought the stock. All the holders that own over 3 percent have now notified the market which surprised me quite a bit.

Hope this helps.

Apparently according to another poster on another bb, they report end november. So hopefully a trading statement in the closed period i.e. beginning november.

The company recently said company growth was in line with expectation.

I'm sure this will touch 1.50 but not sure when or even this year! Good company, good results but very illiquid. If this stock is difficult to buy, then many potential investors will be put off and place their funds elsewhere - I think this is the main reason the SP has not really moved since the latest positive RNS.

Good luck to all investors.

Good to see posters back on here... totally agree ramu, fantastic company. Last night i really looked through the last results again.... the cash that they are making is being used to buy aquisitions. You would hope/think that they are profitable and will feed through over the next year or so. The larger BNH gets the greater discounts it will get for its brokers with the insurers. This will only be good for attracting new business. This company will always generate cash imho, so long it does that and uses it wisely then we will be ok. Just a shame about the short term share price.

It started to perform strong approx a year ago. It should hopefully do the same this year and the run up to christmas all being well.

I think so legend. Have to be honest I was gettin a little bored with this investment for a while. But I am not selling for the sake of it. I will remain long until how long it takes.

It is good to see 25k buying today to mop up the sell earlier on during the week.

Yes wraz, mms must be laughing their socks off picking up that stock at 82p... Wish i could pick up the stock at that price.

Lets hope good news is in the waiting...

As I have always said, I can't see why anyone would want to sell at this price...

Keep the bb alive everyone..

Buyers around again....

Someone after stock me thinks before results...

1.06 in the middle now... things seem positive here now. mms absorbing stock at 1.045. I see no reason to sell now. Will wait to see what the results will be like. Wouldn't have thought any nasty surprises imho.

I would expect to see member numbers at their highest and likely increases in profit.

All imho of course. Good luck all

I think this will fly soon....

RNS Number:9967T Broker Network Holdings plc 11 November 2005
Broker Network Holdings plc ("The Company")
Notification of Interest
11 November 2005

By a letter dated 9 November 2005, the Company was notified that AXA S.A., of 25 Avenue Matignon, 75008 Paris and its Group Companies have a non-beneficial interest in 1,650,000 ordinary shares of 2p each in the Company (representing 10.95 per cent. of the total number of ordinary shares in issue).
END
This information is provided by RNS
The company news service from the London Stock Exchange
END


HOLIIFSALDLLLIE

Today's RNS is confirmation of further institutional interest. Investors are confident in the progress of BNH and this should drive up the SP. However, I wouldn't put it pass their PR company to mess up this good RNS ........

Absolutely agree. AXA having an interest in BNH can only be a good thing for the company imho

Seems positive...


BROKER NETWORK HOLDINGS PLC

(AIM:BNH)


Broker Network Receives Full Lloyd's of London Accreditation



Broker Network Holdings Plc ("Broker Network" or "the Company"), the network of
independent community insurance brokers, has today announced that it is the
first network to have gained full Lloyd's of London accreditation, which is
effective from 1st December 2005, replacing the provisional accreditation it has
held for the past three years.



The full accreditation has been awarded to Broker Network London Markets ("BNLM
"), a subsidiary of Broker Network Holdings Plc, which operates from offices in
the Lloyd's building in London.



BNLM is one of only 162 brokers in the world with direct access to Lloyd's.
Brokers can only join Lloyd's by invitation and initially this is on a
provisional accreditation basis. A further three years of successful trading is
required to become a fully accredited Lloyd's broker and during this time, each
broker is required to demonstrate an understanding of the Lloyd's market. As
part of the assessment they must also place a certain amount of business through
Lloyd's.



Commenting on the accreditation, Grant Ellis, Chief Executive of Broker Network,
said:

"Becoming fully accredited to Lloyd's is a tremendous achievement for Broker
Network and Broker Network London Markets. This accreditation will allow BNLM to
continue to use their specialist knowledge to negotiate competitive terms and
conditions for clients and further endorses our position as a reputable broker.
Our network model continues to grow and we remain confident in the level of
acquisition enquiries."

-ENDS-

I hope everyone got the network news from Broker Network. I thought it was very positive, especially now 150 members have been reached.

SP still way below what I want from my investment.

Results will I am sure send this one this time. Newsflow has certainly improved.

Keep holding and buying imho.

wraz

Fantastic news imho

Trading Statement

RNS Number:0156V
Broker Network Holdings plc
02 December 2005

2 December 2005

For immediate release



BROKER NETWORK HOLDINGS PLC
(AIM: BNH)


TRADING UPDATE



Broker Network Holdings Plc ("Broker Network" or "the Company"), the network of
independent community insurance brokers, today announces that the financial
results for the half year to 31 October 2005 are expected to exceed current
market expectations. This is as a result of strong trading across the Company's
operations combined with a one-off improvement in contract terms with insurer
partners.



The detailed interim announcement of the results for the six month period will
be made on 13 January 2006. An analyst briefing will be held at 09.30am and a
press briefing at 11.00 am at Buchanan Communications Ltd, 45 Moorfields,
London EC2Y 9AE. Please contact kelly-annf@buchanan.uk.com to register your
attendance.



-ENDS-

I would have thought there would be more reaction than this...

Very positive news on friday... I really think that this was the bit of info that truly confirmed to me that this co is sound as a pound or as sound as 2 if they keep going!!!

Totally happy to be in for the ride....

With a p/e of 15-30 and projected eps of 10.5p, the SP should be anywhere between 1.575 and 3.15

Still not late to get in and, for existing holders, to top up.

I would agree 1.50-2.00 at present, who knows what the future holds??!! ;-)

As always time will tell,

Regards

Legend

Merry Xmas everyone. It has gone quiet on here. I think a bit of profit taking after the recent trading statement.

I am still fully invested and will be for as long as it takes. These are a good solid company with better than expected results

Buyers around for this... perhaps mms have a seller.... can't see why anyone would want to sell these given the recent trading statement. Can't wait until 13 jan to see how well the co has done.

legend,

If you are planning to top up, don't wait until 13 Jan. I think SP is muted but not for long. You cannot keep a good company off the radar for too long. The press will pick BNH soon as a sound investment. Not sexy but that's down to their PR dept! Merry Christmas and Happy New Year to all investors, traders, rampers, derampers and BB contributors.

Looks like next year will be a good year for bnh given their recent trading statement. I think price has held back due to a seller. But now I think he is out given the 3 blocks of 10k sells over the past few days.

I would expect some coverage over the next few weeks on this co.

The following was from Shares Mag:

Bull Points
- Results will beat forecast
- Benefiting from changes in savings regulations
- Received full Lloyds accreditation in Dec
- Share overhang on Capricorn stake should clear
Bear points
- Free float limited, shares volatile
- Membership growth slowed this year.

Results out 13 Jan and the SP should take off. DYOR and good luck to all investors.

A very good day indeed for all holders. Long overdue imho.

Can't wait for results

So many buyers around. This is good to see!!!

GL all

Will be up early doors tomorrow folks to see the interims.

GL all holders. Am still as confident as ever with these puppies..

Broker Network Holdings plc
(AIM:BNH)

Interim Results for the Six Month Period to 31 October 2005

97% Increase in Operating Profit Before Taxation and Amortisation

5 Further Acquisitions Completed

Broker Network Holdings plc ('Broker Network' or 'the Group'), the network
organisation for independent community insurance brokers, today announces its
interim results for the six month period to 31 October 2005.

Financial Highlights

Turnover increased by 56% to 5,852,000 (2004:3,747,000)
Turnover from continuing operations increased by 39% to 5,215,000
Operating profit before amortisation up 97% to 1,502,000 (2004:763,000)
Operating profit up 71% at 983,000 (2004:573,000)
Group operating margin before amortisation 25.7% (2004:20.4%)
Profit before tax increased by 60% to 1,133,000 (2004:709,000)
Profit before tax and goodwill amortisation up 84% at 1,651,000 (2004:899,000)
Fully diluted earnings per share up 35% at 4.66p (2004: 3.46p)

Operational Highlights

5 acquisitions completed making total number of brokers acquired 16
Good prospects for further acquisitions as enquiry level remains high
Number of Network Members increased by 6 to 145
Strong pipeline of new Members
Progress across the Group continues in line with plans

Well ? Are people happy with the results or disappointed ? Why ?

Very happy,

The company is growing nicely, making good profits, is likely to pay a dividend at year end, good sound board taking modest salarys, has plenty of cash, acquiring brokers on very sensible terms, member numbers going up... that enough reasons?? ;-)

Plenty more to come imho.

DYOR... these will bounce..

I know that's why I'm in.

Looking for around 200p.

These are bound to be covered in financial press over next week or so.... Shares mag put something in last week that BNH are reporting. No reason why these wont be a BUY in next edition.

All imho.

Welcome aboard. How many did you get??

Oh - just a few. Not many fundies available at the mo, few bills to pay and all that. Will add on further weakness though.

From Growth Company Investor - Strong Buy

Broker Network - STRONG BUY
Companies: BNH
13/01/2006
Broker Network, the network of independent community insurance brokers, has cheered investors with premium interim figures to October.

Grant Ellis, chief executive, reported record profits for the half pre-tax profits adding back goodwill rose 84% to 1.65m on turnover lifted 56% to 5.85m. Operating margins clipped up to 25.7% (20.4%).

BNL, which focuses on personal and commercial general insurance, is a consolidation play with great growth prospects. It provides small local insurers, run as lifestyle businesses, and insurance brokers, with support services such as IT and marketing. As well as providing a natural exit for aged principals, small brokers join for better bulk buying power with insurers, to gain access to more insurance markets, as well as BNL's enhanced regulatory compliance services.

Harrogate-based BNL joined AIM at 71p in 2004 and has completed 16 acquisitions to date for 7.4m, acquired five brokers during the half for 4.2m. It apparently has a spate of prospects in the pipeline to add to its 145 strong network. We are a retirement proposition and the penny seems to have dropped, explained Ellis. Vendors now see us as a good source of retirement funding.

In terms of trading, he flagged up falling insurance premium rates for bigger ticket business, but explained the impact on members would be softened as they generally write smaller ticket business.

BNL boasts solid balance sheet credentials a 1.4m first half net inflow meant the group finished the half with over 2.1m cash. For the full year, analysts suggest a jump in pre-tax profits from 1.8m to 2.7m upgraded from 2.65m on 11.6m sales, giving earnings of 13.5p and a prospective p/e of 8.6. Strong buy.

James Crux
Market cap: 17.47m
PE Forecast: 8.6
Share price: 116p

I like the look of this one legend and see that its on a very cheap forward P/E of 8.6.

Had a quick look through the thread and note that one person (in 2004) was a little worried about the number of options that could dilute the cake and the SP any thoughts on this yourself?, your opinion is much appreciated. I am tempted to buy but have to do a bit more research. Dont know much about insurance and have always generally steered clear therefore my hesitation. Whats this about falling premiums for big ticket items, anything to be concerned about?.

Ps, whats the spread normally like, does it move in after 9am etc etc?.

Cheers GF.

Hi GF,

Yes still a screaming buy imho. This is by far my largest holding mate.... 3x more than tgp. Have been in these since 61p. The company has done everything and more since floatation. The directors are paid modest salaries and have large share holdings. This is good to see imho.

They have approx 2m cash and are set to smash the 2.2m for 06 profit target that was initially set by house broker teather and greenwood. With a mkt cap of 17m, these seem cheap i think.

they are even forecast to pay a dividend in september of 1p, increasing to 1.5p next year. I think that these are an undiscovered growth story and can go all the way.

Their reason for floatation was to raise cash to fund acquisitions. By acquisitions, i mean insurance brokers. Since jan 14 last year, the fsa has regulated general insurance and as you are probably aware, the demands of the fsa can often be too much for the one man band insurance broker, so enter BNH, they acquire the broker at unbelievably cheap cost on very sensible terms. Plus also since regulatory demands have been at their highest, more and more firms are joining a network - hence bnh member numbers are at an all time high. At interims, they stood at 145. Any investor already knows that they smashed the 150 milestone in november as we all received a shareholders newsletter with this on!!!

Sorry about the rushed response, but if you want further info, i will give you my e-mail address.

The above isn't financial advice, just my honest opinion.

I would have thought shares mag would cover these on thurs and ic on friday.

Incidentally shares mag tipped these at 1.30 as a top share for 2005. Since then, they have done everything since then that they set out to do, with no negative news.... so at 1.185 today, I still think they are worth a punt.

Please DYOR and let us know what you think.

Superb post that legend, I got in earlier today but your words are very reassuring. Looks very cheap to me. Theres a post on the TMF iwill transfer if I can find it again.

cheers GF.

Please do sir, the more posts on here the merrier.

I feel like i am talking to myself on here sometimes. I know it isn't the most interesting of companies, but it certainly hasn't disappointed to date.

One day soon these will fly imho.

From the other side after speaking to teathers:

greengiant - 17 Jan'06 - 08:50 - 38 of 38 (premium)


Gents,

Just got off the phone after a 20 minute conversation. Headlines are as follows:

First off congratulated BNH on the fantastic set of results - They do not seem to be a company that blows their own trumpet.

Started to talk about EPS and the basic response was a misunderstanding between the House Broker and the company. They will take on board the need to report EPS before and after amortisation.

On valuation - they are extremely disappointed with the current shareprice and feels that the market currently undervalues the company by up to 50%. This is something that will be worked on.

Belief is that the full year EPS is light at 13.54p, especially considering that the half year EPS was 8.24p. They have no objection with the T&G forecast, it has been prepared with limited input from the company and they would rather have it upgraded and exceed it.

In terms of the market, the feeling is that there is not as much downward pressure on prices as was first anticipated toward the back end of last year. The Broking business can raise its turnover to around 20m without any significant increase in overheads as the majority are centralised - once 20m is reached then there will be another step change.

Pipeline of acquisitions are very good and 3 are nearing completion - it is anticipated that these will be completed well before year end. Again on EPS - it is anticipated that THB will make a good contribution in the 2nd half as we only had 1 month worth of contribution in the first half.

Brought up the question of PR - the company invited several analysts to the briefing after results were issued. Didn't tell me which ones, but stated that there were all the major publications there. Also talked about greater newspaper coverage. Again taked this on board.

Other than that - talked about cash flow and balance sheet - the company would rather fund acquisitions from debt rather than issue new paper. Although if a significant acquisition came along then would look at a placing although this would have to be significant.

All in all - very upbeat, would encourage people to speak to the company to hear it for themselves - sorry for the jumble - note taking was never my strong point.

Cheers

gg

greengiant - 17 Jan'06 - 12:17 - 44 of 44 (premium)


Sorry the other thing was all shares have been placed - and they are not aware of any sellers. They believe there is one person looking to buy. I will look over the trades but would expect to see a T buy pattern.

Cheers

gg

Broker Network Holdings appear to be well organised and i do not hear anything ill of them in the trade.
the factor i do not like is their movement into the purchase of insurance brokers. thus BNH become more of an insurance broker than a "broker network"
........and also that it is a racing certainty the the dreaded (dreadful) FSA will required full disclosure of all direct commission and indirect benefits by this time next year. the broking industry have put up negliable written comments to the FSA in response to the FSA demand for written comments from the insurance broking industry so there is little organised campaigning against the FSA move.

the problem with commission is that % rates apply for different classes of business. the really lucrative rewards are on certain (high premium) commercial policies. the rate might be 20% on a 50000 premium. That 10000 commission can be earned for a token amount of work if it is simply the renewal of a policy. After commission disclosure perhaps 1000 may be a negotiated figure. on top of present commission the broker can enjoy over-riding benefits from the insures ...including extra commission depending upon the volume and profitability of business done with an insurer. all these cosy arrangements are likely to come to an end.
in their recent results BNH announced that they had negotiated extra "cosy" arrangements with certain insurers. the cosier the arrangements the greater the fall

In investors chronicle this morning:

Broker Network's core business is to provide improved terms for the average small high-street insurance broker by acting as an intermediary between them and the leading insurers.

As well as training and support on regulatory compliance, it also provides an exit strategy for the typical high-street broker looking to retire. The company now has 145 'members', together with 16 retail brokers that it owns outright. For each 1 of premiums generated, brokers receive 14p, while Broker Network takes an average 1.5p, plus 0.3p from the insurers. On this basis, income from members averages 28,000 a year, but rises to 266,000 for the brokers it owns. Before goodwill amortisation, pre-tax profits rose 84 per cent to 1.65m and, for the full year, Teather & Greenwood expects profits of 2.72m and adjusted EPS of 13.54p (from 1.8m and 8.7p, respectively, in 2004-05).

Broker Network boasts a strong and improving cash flow, helping to bankroll its bolt-on strategy, and six new members were added in the first half. The shares have risen 20 per cent since November, but still rate good value.

Good to see these bounce from here. Thanks for posting ic article wraz. They are right, I think they do represent good value to buy... There is plenty more upside in this growth story imho.

I think these will slowly drift up from here...

17th acquisition - see RNS

And up they go...

Great news - seems things are going according to plan:

Broker Network Holdings plc (AIM:BNH)



Acquisition of Adam & Gaskell Limited



Broker Network Holdings plc ("Broker Network" or "the Company") the network
organisation for independent community insurance brokers, is today pleased to
announce the completion of the acquisition of commercial insurance brokers Adam
& Gaskell Limited ("Adam & Gaskell").



Adam & Gaskell was formed in 1976 and is a highly respected commercial insurance
firm with offices in Lancaster, Garstang and Carnforth.



This is the eighteenth acquisition to be made by Broker Network, as part of the
Company's ongoing intention to purchase independent insurance brokers (both
Member firms and non-member firms) which are owned and headed by principles who
are looking to retire. Acquisition of these brokers offers Broker Network the
opportunity to increase earnings by placing business more effectively and by
retaining a higher percentage of premium turnover.



A condition of the deal is that the purchase price parameters will remain
confidential. However, the Company confirms that this latest acquisition is
broadly in line with the other acquisitions made to date.



All staff at Adam & Gaskell will be retained, along with the brand name, in line
with Broker Network's acquisition strategy.



The purchase of Adam & Gaskell has been completed following approval by the
Financial Services Authority of the change of control of the business.



Commenting on the acquisition, Grant Ellis, Chief Executive of Broker Network
Holdings plc said:



"As our acquisition model continues to thrive, we are delighted to welcome Adam
& Gaskell to the Group and we are pleased to report that this, our eighteenth
acquisition, has been successfully completed. We continue in our drive to
acquire non-member firms such as this, in order to expand our network further
across the UK."

Great news imho:

BROKER NETWORK HOLDINGS PLC (AIM : BNH)


ACQUISITION OF THE GENERAL INSURANCE BUSINESS
OF TOWRY LAW GROUP


Broker Network Holdings plc ('Broker Network' or 'the Company'), the network of
independent community insurance brokers, is pleased to announce that it has
exchanged contract to acquire, subject to FSA approval, the general insurance
business of the Towry Law Group ('the Acquisition').

The Acquisition, which adds over 50m of gross written premium and six new
offices to the Company, is the largest made by Broker Network to date. The
Acquisition consideration is 12.5m cash, payable in full upon completion, which
will be funded by existing cash resources and bank debt. In the year ended 31
December 2005, the Acquisition recorded a pre-tax profit of 301,000 net of
payments to Towry Law Group, and had closing net assets of 3.47m. At the date
of completion, the net assets of the Acquisition will be 1.50m.

Upon completion, the Acquisition will be renamed and join Broker Network as a
full member. It will operate from offices in Birmingham, Bracknell, Glasgow,
Leeds, Leominster and the City of London. The enterprise will be majority owned
by Broker Network with the remainder owned by senior employees of the acquired
business. The business will trade as a separate subsidiary of Broker Network,
under the direction of current Managing Director, Martin Wright.

In addition, the Company reports that trading for its year ended 30 April 2006
has been strong and as a consequence expects to report sales and profit before
tax slightly ahead of market expectations.


Commenting on the Acquisition, Grant Ellis, Chief Executive Officer of Broker
Network, said:

'The acquisition of the general insurance business of Towry Law represents a
strong step forward in the development of the Broker Network business. We are
delighted to welcome such a well-regarded and high-achieving team to the Company
and expect to drive a significant improvement in the acquisition's
profitability. We will integrate it into our successful network infrastructure
and are confident it will be earnings enhancing for shareholders.

The purchase increases our gross written premium by some 12% to almost 400m,
further reinforcing the Company's strong position in the UK commercial insurance
market.'

And up they go again....