Budget is to move into commercial vehicle insurance in a bid to nearly double its profits by the end of June 2006.

The news came as the broker reported a 32% increase in pre-tax profits to £10.7m for the financial year ended 30 June 2005.

Group chief executive Peter Winslow said the company was looking to grow its profit before tax by 90% to £19.7m at the end of the 2006 financial year.

The company reported a 7% increase in gross written premiums from £280m in 2003/2004 to £300m in the last financial year.

Winslow told Insurance Times that commercial vehicle business would provide the "opportunity to grow significantly". He said. "We want to be able to offer a spread of products to clients. We will not be pulling out of personal lines."

Winslow said the company had ploughed significant investment into the group over the current financial year.

"We could have grown much more quickly," he said. "We forecast that this year [2005/2006] is going to be at least 90% up on the last."

The intermediary's affinity business makes up 27% of its combined business. Winslow said he would be looking to attract new affinity deals in the next six months.