The rapid growth strategy at Austbrokers is paying dividends, with the broking network reporting an $18.1 million profit for the 2006 financial year.

CEO Lach McKeough announced the milestone first annual result since the company was listed on the Australian Stock Exchange. He says it came despite relatively soft market conditions.

Mr McKeough says 19 of the 28 original Austbrokers brokerages increased their profit. Broking was marginally up on 2005 on lower premiums and, as flagged in the interim results, expenses continue to be tightly controlled.

Austbrokers continued to expand over the year, adding four brokerages to the network. Mr McKeough says the industry is still rationalising, and that will present more growth opportunities.

“In the year to June 30 2006 the company has made a number of acquisitions, and we continue to seek greater scale and cost synergies through this strategy.”

But Austbrokers is also selling some of its assets. It earned $8.1 million through the sale of existing businesses – $600,000 more than predicted in its October prospectus.

Mr McKeough says he expects growth to continue in the next 12 months. He predicts net profit after tax will rise 5-10% for the 2007 financial year, despite the probability of flat or declining premium rates.