At its first-ever investor conference in New York City, global broker Willis Group Holdings outlined plans to drive the next phase of the company’s growth.
Willis reiterated that for the full year 2006, the company anticipates continued growth in organic commissions and fees, still expects salaries and benefits expense as a percentage of total revenues to be less than 59 percent and continues to expect modest adjusted operating margin expansion.
Also in 2006, Willis executives said they expect to recognize one-time expenses related to some of the company’s strategic initiatives. Willis expects to close on the sale of Ten Trinity Square, its current London headquarters, recognizing a gain during the second half of 2006. The company is on schedule to move into a new London headquarters in late 2007/early 2008.
Thecompany introduced five-year financial targets of salaries and benefits expense as a percentage of total revenues to be below 54 percent, adjusted operating margin of 28 percent or better and industry leading organic revenue growth.
Additionally, the company’s acquisition goal is to acquire $50 to $100 million of revenues per year over the next five years.
The company noted that year to date, no shares have been repurchased and there remains $140 million available under the existing $500 million buyback authorization.
Speakers at the event included Joe Plumeri, Chairman & CEO Willis Group; Don Bailey, COO Willis North America; Richard Bucknall, Vice Chairman, Co-COO; Kerry Calaiaro, Director, Investor Relations; Tom Colraine, Vice Chairman, Co-COO; Phil Ellis, Global Energy Practice Leader; Allan Gribben, CEO Willis UK & Ireland; Peter Hearn, CEO Willis Re; Chris London, Global Sales & Marketing Director; David Margrett, CEO Global Specialties; Grahame Millwater, Chairman Willis Re; Pat Regan, CFO; Jeanette Scampas, EVP Global Information Systems & Global Operations; Sarah Turvill, CEO Willis International and Mario Vitale, CEO Willis North America.
The audio webcast and accompanying slide materials for this Investor Day will be archived at the Investor Relations section of www.willis.com under “Presentations”.
Source: Willis Group Holdings