Broker Network chief executive says independent broking is thriving, as he tells members ”when we grow, you grow”
Broker Network will continue their “relentless execution of the strategy” this year, after posting strong 2017 growth figures.
The UK’s largest broker network increased group revenues 13% to £23.1m, compared to 2016 on a like-for-like basis.
EBITDA increased 10% to £5.7m.
The group results include all the revenues generated from the three acquistions in 2017.
Broker Network has added a new “pillar” to their strategy by acquiring strong regional brokers known as “regional powerhouses”.
This was in combination with organic growth and member-exclusive products.
Broker Network acquired three regional powerhouses in 2017, and in 2018 has already purchased majority holdings in three more.
These powerhouses are provided with funds to acquire smaller satellite brokers, and in 2017 five of these were purchased.
The aqcuisition strategy has helped Broker Network improve on 2016 figures.
In 2016, revenues rose only 6% on the previous year to £13.9m, with EBITDA flat at £2.9m.
Network members’ division results
The network members’ division, which does not include the acquired broker figures and relies on network member revenue, showed 2017 revenues at £15.2m.
This was up 15% on the previous year, while EBITDA was at £4.5m, up 27%.
Broker Network chief executive Andy Fairchild highlighted the identical 13% growth figure between Broker Network and over 150 premier members reflected a “remarkable symmetry” between the two sets of results, and that his message to members was that “when we grow, you grow”.
Fairchild added: “For 2018 it’s all about the relentless execution of the strategy.
”So that’s continuing majority acquisitions, support for our membership base and the delivery of market leading support services for independent brokers.
”The consolidation story gets some headlines, it’s a little more difficult to make the headlines around organic growth, but we’d like to. The organic growth of independent brokers is so strong, and as our results show today independent broking in the UK is thriving.”