Lindsey’s lean and mean Hambro

Hambro Insurance Services Group (HIS), a recently acquired subsidiary of Lindsey Morden Group Inc., has sold its 33% interest in Oracle Service Network Corporation — a provider of roadside and other assistance services in the U.S. and Canada — to Tampa-based Sykes Enterprises for 486,892 Sykes common shares. Sykes, an outsourcing consultant firm specializing in information technologies, was trading on the NASDAQ at approximately $40 per share the day the deal was announced valuing the transaction at over $19 million. As part of the agreement, Lindsey agrees to hold two-thirds of the stock it receives until at least May 15 and the remainder until at least December 29.

Lindsey acquired HIS in late 1998 for a net outlay of approximately $196 million. HIS has now sold of all its units, other than its claims adjusting operation, for aggregate consideration of approximately $143 million.

The HIS transactions capped a banner year for Lindsey Morden who recently released their fourth quarter financial figures, posting marked increases across the board. Net earnings rose from 1997’s $3.035 million to $23.275 million in 1998. Fully diluted earnings per share rose from 1997’s 53c to $2.95 in 1998. As a result of the results, and a high level of free cash flow, Lindsey increased its annual dividend rate from 60c to $1.00.