Brightside Group PLC Trading Statement (5555V)

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RNS Number : 5555V

Brightside Group PLC

16 December 2013

Brightside Group plc

("Brightside",

"the Group" or "the Company")

Trading Update

Brightside Group, the specialist insurance broker, announces today that its on line business has been adversely impacted by further capacity restrictions in Q4 2013. As a result of these further capacity restrictions the on line business has experienced a reduction in the level of policies transacted when compared to Q3 2013 volumes. Taking into account the corresponding impact on premium finance volumes, the Directors have reduced their 2013 earnings estimate by approximately 20%.

The main challenge to the Group's profitability is confined to a combination of specific circumstances restricting the available capacity to support the on line businesses. This issue has been particularly acute with the capacity provided by Southern Rock Insurance Company Limited. We are, however, pleased to announce substantial increases in capacity available to our online offerings for 2014, from a range of sources including mainstream carriers and specialist underwriters. The current visible total for 2014 on line capacity is expected to equate to cGBP145 million of premium (2013 estimated total GBP115million) available to be placed via aggregators and increasingly through directly accessed business with our Affinity partners. Continued negotiations are in progress to secure a number of further increases in the coming year. The expected total for 2014 does not include any capacity from Southern Rock or any capacity from sources without current clear visibility. To supplement this, the Directors continue to work to achieve a position where the Group is not overly reliant on any single insurer. We would therefore like to thank our insurer partners for their continued and increased support, and will continue to work with each of these partners throughout 2014 and beyond to ensure this capacity remains available to the Group at competitively priced rates.

The move towards a more diversified panel of insurers substantially reduces the exposure of Brightside to the challenges experienced in 2013 arising from overdependence on disproportionately large accounts with particular insurers. A combination of increased capacity together with continued strong performance within the off line retail broking units indicate a 2014 forecast consistent with market estimates.

Enquiries:

Brightside Group plc

   Paul Chase-Gardener (Interim CEO)                              +44 (0)1454 63 4194

Cenkos Securities plc (Nominated Advisor and Joint Corporate Broker)

   Bobbie Hilliam / Callum Davidson                                  +44 (0)20 7397 8900

finnCap (Joint Corporate Broker)

   Stuart Andrews / Simon Johnson                                   +44 (0)20 7220 0500

Yellow Jersey PR Limited (Financial PR & IR)

Dominic Barretto +44 (0)776 853 7739

Anna Legge +44 (0)774 778 8221

Notes to Editors

Brightside Group plc, (AIM:BRT) is a fast growing insurance broking and financial services group. The Group specialises in delivering market-leading insurance solutions to individuals and businesses. The Group is focused on customer service and operational excellence, adding value for policy holders and business partners alike across all classes of insurance.

Brightside and its associated businesses distribute insurance products online and through UK-based call centres. The Group's insurance activities are complemented by its financial services businesses.

For further information see - www.brightsidegroup.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

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