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

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