Miller Fisher Group, the financial services company, has announced a 42 per cent rise in profit before exceptional items and amortisation, to £2.7 million sterling (€4.2 million) in the six months to June 30th 1999. "The first half of the year saw continued strong organic growth as well as further acquisitions. We have been successful in gaining a number of very substantial new contracts for claims services. The benefits of these will start to flow through in the second half, with the full benefits becoming apparent next year," said chairman, Sir Timothy Kitson.

Miller Fisher, which changed its name from Fishers International, has taken on a lot of new business and chief executive Mr Kevin Kenny said "this will bite into the last half" of this year and 2000 will be "quite a good year". The amount of overlap with Pycraft & Arnold, which was acquired, has been greater than anticipated and this will lead to further exceptional costs of £500,000 to £600,000 in the second half. This follows exceptional costs of £248,000 in the first half.

These costs would be matched by savings, said Mr Kenny. However, the full savings in 2000 should be around £2 million, or £500,000 ahead of projections, he added.

The latest results had to contend with the exceptional costs and amortisation, which reduced the gain at the pre-tax level to 20 per cent. The growth came from core operations with a contribution from acquisitions. Turnover grew by 61 per cent to £29.6 million (€46.1 million). The combined turnover of its claims, administration, inspection and investigation services rose by 62 per cent to £24.7 million while the turnover of its insurance subsidiary, Homecare, grew by 53 per cent to £4.9 million.

Earnings per share before exceptionals and amortisation increased by 18 per cent to 1.3p. Shareholders are to receive a 20 per cent increase in the interim dividend to 0.3p.

Net debt rose from £8.2 million to £13.6 million reflecting the acquisition of Pycraft & Arnold for £11 million, of which £4 million was funded by bank borrowings. Miller Fisher had a negative cash flow of £171,000 from operations. This has been mainly due to a substantial increase in work-in-progress and in debtors due to the expanded businesses.

Mr Kenny said the interest was well covered at 6.6 times.