Broker Network operates in the Insurance sector, as a network organisation for independent community insurance brokers. Company have gone from strength to strength in last 2 years. Today they have just released excellent Interim figures which I will post below, even before these results forward EPS to 2007 was only 10.77 and 2008 = 9.72. Should be a new Broker Forecast out soon, but if you check the Interims you will notice how cheap these shares still are, even after recent increases. Fundamentals all look very stong, with very stong balance sheet and margins are very healthy and improving.

Because of new and tighter FSA rules Broker Network have and will continue to benefit because of the Thousands of small partner firms in this sector who struggle with the tighter regulation. They are coming under the Broker Network umbrella, who then take care of the FSA rules for them ( For a fee of course )

Interim Results for the six month period to 31 October 2006

Operational Highlights

* Acquisition of Towry Law Insurance Brokers Limited for 12.5m
* 1 further acquisition completed making total number of brokers acquired 19
* Pipeline for acquisitions remains healthy
* Number of Network Members increased to 162 from 155
* Strong pipeline of new Network Members
* Progress across the Group continues in line with plans


Financial Highlights

* Turnover increased by 79% to 10.48m (2005: 5.85m)
* Turnover from continuing operations increased by 44% to 7.51m (2005:
5.22m)
* Operating profit before amortisation up 87% to 2.80m (2005: 1.50m)
* Operating profit up 108% at 2.04m (2005: 0.98m)
* Group operating margin before amortisation 26.7% (2005: 25.6%)
* Profit before tax increased by 71% to 1.94m (2005: 1.13m)
* Profit before tax and goodwill amortisation up 64% at 2.70m (2005:
1.65m)
* Fully diluted earnings per ordinary share up 74% at 8.10p (2005: 4.66p)

Commenting on these results, Chairman Faisal Rahmatallah said:

'Our strategy of expanding our network and acquiring broker businesses continues
to deliver value - the trading outlook remains favourable for the Group into
2007 and beyond.'


Grant Ellis, Chief Executive, said:

'These results show, once again, our ability to achieve continued growth across
the Group. Despite difficult market conditions we have demonstrated that our
diverse model allows us to prosper at all points of the insurance cycle. I am
very excited by the opportunities that this will offer the Group in the future.'

Consolidation and Competition

The pace of broker consolidation continues to increase; in addition there are
recent examples of insurers acquiring brokers, particularly in niche areas.
However, we remain confident that our approach to integration gives us an edge
over competitors and will continue to allow us to secure acquisitions in the
face of consolidators with increasingly deep pockets.


Conclusion

These are another set of excellent results for our business and provide further
evidence of the very good work that has been completed over recent years. We
are demonstrating that our strategies of delivering increasing value to Members
and insurer partners in our network business, coupled with participation in
retail broking through acquisition, are both sound and complementary. I am
confident that the trading outlook for the Group remains favourable into 2007
and beyond.


Faisal Rahmatallah
Chairman
Broker Network Holdings plc

After 13.5p increase it will be interesting today to see press comments.

Hopefully another increase. 10p would be nice.

Broker Forecasts 2007 2008 - Teather & Greenwood - 24-10-06 = Buy

2007 - Pre Tax = 5.06m - EPS = 24.69 - DPS = 1.50
2008 - Pre Tax = 5.72m - EPS = 27.35 - DPS = 2.10

2007 - PE Prospective = 10.77
2008 - PE Prospective = 9.73

Should be a updated Forecast soon.

They updated Forecast after I posted last message.

Teather & Greenwood - 12/01/07 = Buy

2007 - Pre Tax = 5.20m - EPS = 24.60 - DPS = 1.20
2008 - Pre Tax = 6.00m - EPS = 28.10 - DPS = 1.50

2007 - PE Prospective = 10.81
2008 - PE Prospective = 9.46

up 18p to 2.88 I will try and find out why.

up again 5p to 2.93 today, this stock has now increased over 30p
since I Started thread on 11th Jan.

Still a good buy imho.

BNH appears in this weeks SHARES mag with a target price of 321p, so may not be long before we see a dip on profit taking.
But, it also says "Shares are cheap & with plenty of growth potential, the shares remain very attractive".
So looks like they covered every option!!!

I wondered why shares gained 19p today, still I'm not complaining.

spitfire43, eps of 25 for 2006/7 excludes Towry Law Law's full 12 months contribution to earnings and sector p/e of around 16 will give a conservative sp of 400p! Also, I'm not sure what the actual earnings would be if you exclude goodwill amortisation and bring in TL's full contribution. Many punters feel these share should be currently in 400-450p range. All IMHO & DYOR. Good luck.

Ramu, how are you?? Told you these looked good at 61p didn't i ;-) keep smiling.

regards

legend!!

legend, sold half my holding over the past year - needed the money for my new house. In hindsight, wished I hadn't. Anyway, can't complain.

Not doing great with TND - are you still sticking to your 25-30p target? Do you have any more gems like BNH?

SEY has come up radar - any thoughts? Call me. Thanks.

As well as a recommendation in Shares they also had a buy rating in Investors Chronicle last week. Now at 3.23, I did sell some at 2.94 but now I will let the rest run.

Hi ramu, have sold a few holdings - i have kept tnd and think tgp look ok. Peter Gyllenhammar has recently bought a holding in the co.

As you have seen with this stock - patience is virtue!!!

Glad you have done well. Full credit must go to management.

Send me an e-mail to let me know how you are getting on.

Good luck all.

Recovered today up 8.5p to 307p, very strong buying only 3 sells out of 36 trades.

Broker Network starting to power ahead now to 3.22. Last week they released a trading update, which was very positive. See Below........

The Company also announces that the financial results for the year ended 30
April 2007 are expected to exceed current market expectations. This is as a
result of strong trading across the Company's operations.

When you consider that forecast EPS for 2007 is 24.87p, then Broker Network still offer could value.

Even trades today with sp only slightly down, I wouldn't be suprised to see 2007 EPS over 26p.

legend will be pleased to know that I bought in on my daughter's account when they came back to 280p. I do accept spitfire's comment that they are well equipped for blue chippery. Towry Law acquisition indicates that they are moving into the premier league. Chart at a resistance level but should drive though this on results for year ending 30th April - when are these expected?

Eric

Blue chippery will do for me, certainly a quality company.

I believe Finals should be annouced 14th September.

Interesting sp gain yesterday up 17p to 344, and slightly down 7p today.No recent news that I can find but plenty of purchases on each day. Even with recent good run the forward pe for 2007 is only 12.5.