Perkins Slade saw turnover increase by nearly 20% in 2006, but profits were hit by rising expenses, the broker said this week.

The Birmingham broker said profits fell by 8% to £599,112 for the year ended 31 August 2006, after expenses rose by 19%.

Chief executive David Slade said exceptional costs were incurred with the appointment of Stuart Love as director of sports and the launch of its underwriter, Insuresport Mutual.

Profits were also hit by the acquisition of Stanford & Wood's insurance book, the installation of a Sirius computer system, and the appointment of Sally del Principe, who joined to head a credit insurance team.

Turnover continued to climb, despite the soft market. Chairman Ron Forrest said: "We were able to show a 17% increase in turnover to £7.4m due to a good year for new business and the transfer of Stanford Wood."