PSC Insurance Group said at today’s annual general meeting (AGM) that the business performed well in the first quarter of this financial year, putting it on course to achieve its previously stated earnings targets.

The Melbourne-based broking group is aiming for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $84-89 million for the year to June 30, and underlying net profit after-tax of $54-58 million.

In the last financial year, underlying EBITDA rose 24% to $71.4 million and underlying net profit after-tax 22% to $45.8 million.

PSC had a “strong first quarter of trading across all key businesses and segments with Q1 being ahead of budget,” it said in slides presented to shareholders at the AGM.

It says the recent acquisition of Alliance has added to the strength of its Australian broking business, and signalled it remains keen to pursue more growth via this route. In August PSC announced it was acquiring the broking business of Alliance Insurance Broking Services for $24.5 million.

The business grew five times bigger in the last six years to FY2020/21, with 68% of the expansion driven by mergers and acquisitions (M&A) and 32% organic, according to the presentation slides.

PSC says in a separate announcement today that it has refinanced and increased its existing debt funding capacity.

The syndicated facility agreement now has a $190 million limit, up from its initial balance of $100 million. PSC also entered into a new bilateral note purchase agreement.

PSC says the funding partners involved with the refinancing and raising of debt funding capacity “provide an excellent base for the group to continue its growth strategy via selective M&A in our core markets in Australia and the UK, with all providing long term funding commitments to the group”.