Acquisitive brokers are fuelling expansion at IT provider Sectornet as its clients invest in their new purchases.

Sectornet, formerly known as MCS, reported a 24% rise in pre-tax profits on the back of a 17% rise in income for the six months to 31 May, bucking the trend for sluggish results in the IT market.

The company, a software specialist, put its booming books down to the fact that its customer base features many of the most acquisitive brokers sweeping up other businesses before FSA regulation takes effect next year.

Sectornet's clients range from brokers using 35-40 operators at the lower end, with the majority having about 100 operators.

Marketing director Ken Jarratt said: "It's our brokers turning over £15m in premium income who are on the acquisition trail.

"They want to improve that by another £3m to £5m because they can absorb it."

They were buying brokers using between five and 10 operators, he said.

Results box

  • Income up to £3.4m in six months from £2.9m
  • Pre-tax profit up to £380,000 in six months from £306,000