2008/9 was a tough year for Oval, as it was for most advisory businesses. We suffered, as a corporate Insurance Broker, because many of our clients experienced significant reductions in activity levels, turnover and headcount and, in a few instances, went out of business. As a Financial Services advisor, we suffered from the collapse in confidence in investment markets in 2008.

Yet, at first glance, Oval's headline financial results look reasonably good. Revenue in the year to 31 May 2009 increased by 16% from £90.5 million to £104.6 million; and earnings before interest payable, tax, depreciation and amortisation ("EBITDA"), excluding exceptional costs, rose 7% from £17.4m to £18.7m. However, Oval produced a small loss before tax of £0.4m (2008: profit £4.6m), driven by increased goodwill amortisation and interest costs and lower investment income.

The business started to under-perform against budget from November 2008 onwards, when the recession started to take its toll. Against the targets we set for ourselves at the start of our financial year, both turnover and EBITDA for the full year fell well short of expectations.

Action was taken promptly to reduce unnecessary costs. Further emphasis was placed on sales and service. Accordingly, since May, the business has been once again hitting its forecast numbers. In some ways the recession was good for Oval, as it has made us focus even more closely on what is good and bad within our business.

I am sure that Oval will emerge stronger from this recession and will be positioned to take maximum advantage of the economic upturn when it comes.

Phillip Hodson
CEO, Oval Limited.