PSC Insurance Group has predicted another strong earnings season ahead after reporting an 18% rise in underlying revenue to $119 million in the last financial year.

Robust organic growth and contributions from new acquisitions underpinned the 2018/19 results, and will remain key revenue drivers, the business says.

The business has made major investments to expand its reach, including last month’s purchase of London-based Lloyd’s broker Paragon International for a base consideration of £42 million ($75.3 million).

PSC has been working to grow its UK presence. It took on a 70% stake in Leicester-based Turner Insurance Services in June last year, launched construction-focused wholesale agency Chase Underwriting International and made other smaller purchases.

At home, it announced a $48 million deal in July to buy regional Victorian broker Griffiths Goodall.

“We have previously announced the acquisitions of Griffiths Goodall and Paragon,” PSC said in a statement. “Both businesses have very capable management teams who have grown their businesses entirely from organic means.

“Dependent on the timing of completion for Paragon, we expect earnings growth from these acquisitions of over 20% for the financial year 2020. The existing businesses are also expected to continue to perform well and grow organically at a level consistent with prior years.”

Last financial year, underlying net profit increased 15% to $27.8 million, but on a statutory basis it declined 9% to $25.4 million due to one-off charges and a $17.3 million fair value gain enjoyed in 2017/18.

Earnings before interest, tax, depreciation and amortisation (EBITDA) on an underlying basis improved 17% to $43.3 million.

Organic growth added another $3 million to operational underlying EBITA and acquisition-led growth brought in $3.8 million.

“It has been another active and successful year for the group,” MD Tony Robinson said.

“We remain focused on organic growth outcomes, supplemented by acquisition-based growth where we feel we can add value and grow the business.”