Listed broker consolidator Hub International Ltd. (TSE: HBG) lifted net earnings by 7% to $3.9 million for the first quarter of this year compared with the $3.6 million posted for the same period in 2000. This translated to earnings of 21 a share against the 20 a share made for the first quarter of last year. The average number of common shares in issue had risen marginally to 18.6 million by the end of the first quarter 2001, which resulted in a modest two percentage point dilution between the rate of growth between net earnings and that of earnings a share. As a result of the strong performance, the company’s management has declared a 7 a share dividend for the first quarter of this year, which will be payable to shareholders registered by June 15, 2001.
The broker consolidator also saw total revenue for the latest reporting period rise by 21% year-on-year to $44.3 million (1st quarter 2000: $36.6 million), which the directors say largely came about due to the “positive impact of acquisitions” the company had made over the past 12 months. Hub also announced that the terms of its agreement to acquire U.S. brokerage and risk manager Kaye Group (Nasdaq: Kaye) have been changed. Hub has converted its offer from a combination of cash and convertible debentures to being an all-cash deal. Kaye shareholders will receive US$14 a share for their holdings. The broker consolidator says it will pay for the Kaye acquisition from existing cash reserves as well as an amount of US$35 million which the company recently received from its parent owner Fairfax Financial Holdings in exchange for the issue of Hub convertible debentures. Completion of the Kaye acquisition is expected within the second quarter of this year, the directors say in a press statement.
