The broker also recorded organic growth of 12%
R K Harrison Group (RKH) has broken through the £100m revenue barrier for the first time.
The broker also reported organic revenue growth of 12% in the year to 30 June 2013.
Overall revenues at RKH were up 24% to £115.4m for the same period from £92.9m in 2012, making it the broker’s 14th successive year of growth in revenue.
RKH’s profits before tax climbed 44% to £22.7m from £15.8m in 2012, while its profits before taxation, goodwill amortisation and exceptional items grew by 27% to £30m from £23.7m in 2012.
The broking group comprises of its UK retail arm RKH Insurance Services, international specialty lines RKH Insurance Brokers, the reinsurance arm RKH Reinsurance Brokers and its delegated authority Bowood Insurance Brokers.
Chief executive Paul Bridgwater said the broker’s employee ownership model has helped to retain individuals who can drive and direct the future growth of the firm. As part of the model employees are typically invited to earn equity in the company.
“These results are characteristic of the significant momentum that we have as a business. Surpassing £100m in revenue is an important milestone in our story but what is more exciting still is the strength of the platform that we now have in place to take advantage of the opportunities ahead,” he said.
“We remain wholly owned by employees, giving us the control and the financial strength to reinvest in our business for growth and to create an active internal market for our shares. This allows us to reward those that have earned the right to equity ownership and, in turn, to attract and retain the talent that will drive our business for the long term.”
In June the broker secured £30m in refinancing from Clydesdale Bank and RBS.
RKH said its term debt has reduced by £3m to £22.5m and adds that further expected liquidity improvements during the 2013-2014 financial year should see its own cash balances exceed the term debt by the end of the year.
The organic growth was also helped by the full year contributions from acqusitions made in previous years - Mercury West Associates (MWA), the UK specialist high net worth broking business acquired in December 2011, and the Gibbs Hartley Cooper portfolios acquired from Marsh UK in June 2012, incorporating the cargo, specie and healthcare teams.