PSC 'on track' for higher earnings after strong Q1

PSC ‘on track’ for higher earnings after strong Q1

10 November 2022

PSC Insurance Group affirmed its FY2022/23 earnings guidance at this morning’s annual general meeting (AGM) after the business made a solid start to the new financial year.

The Melbourne-based brokerage says all key businesses and segments achieved strong trading results for the first quarter ended September 30.

PSC is aiming for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $105-110 million and underlying net profit after-tax of $70-73 million for this financial year.

The business performed strongly in the last financial year, achieving a 30% rise in underlying EBITDA to $93.5 million and 40% surge in underlying net profit to $64 million.

“Our strategy continues to be simple… grow our business by a continual focus on what is best for our clients and in turn our shareholders and staff,” Chairman Brian Austin said at the AGM.

“We continue to grow organically as well as via targeted and balanced acquisitions.”

He says the capital raise in March via a share placement – netting $80 million in proceeds – will be used to fund further acquisitions after the business used a portion of it to purchase Ensurance UK, Hong Kong-based Charter Union Insurance Brokers and Trade Credit Risk in Australia.

PSC said previously the three acquisitions – worth $22 million collectively – are expected to contribute “positively” in the current financial year, with incremental pre-tax earnings of about $1.4 million and an annualised initial pro forma contribution of about $2.4 million.