PSC eyes growth at home and abroad
PSC Insurance Group sees good growth opportunities in Australia and says the UK will remain a focus as it expands through acquisitions and existing business.
CEO Rohan Stewart says underlying earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to top $43 million this financial year, after rising to $37 million in the year to June 30.
“The group remains well positioned for future success, with an increasingly strong market position and sound balance sheet,” he told the company’s AGM today.
Last week PSC announced acquisitions to enhance its offering in workers’ compensation services and life cover.
The group’s 75%-owned subsidiary PSC Workers’ Compensation is buying the business of Workers Compensation Services for $3 million.
The purchased business, with offices in Sydney, Melbourne and Perth, has been operating since 2010, providing advisory and injury management services to government and private sector clients.
The diversified insurance group has also paid $800,000 for a small portfolio that will enhance its Certus Life business, adding two experienced team members as part of the expansion.
“Our business has grown organically as well as through acquisitions, and this we believe will continue,” Chairman Brian Austin told the meeting.
In the past year Australian operations contributed about half of the growth in underlying EBITDA, with acquisitions the next-largest contributor, followed by the UK businesses.
Mr Stewart says the UK will remain a focus given its global importance to the insurance industry, the “value-add” to Australian clients and the group’s experience and networks in those markets.
The UK contributed 18% of EBITDA last financial year, compared with about 25% at the time of the PSC initial public offering in December 2015.
The level over time is likely to be in the 20-30% range, Mr Stewart said.