Insurance broker Lycetts breaks profit records thanks to key acquisitions and divestment strategy

North East-based insurance broker Lycetts has celebrated a record year of results, helped by acquisitions and strong sales.

The Newcastle-based firm, founded 63 years ago, specialises in farm and property insurance, as well as providing financial services, advice on household, commercial and equine insurance. It has exceeded year-on-year growth in revenue and operating profit since moving its headquarters from the historic Milburn House to Bank House in Pilgrim Street, taking up the entire sixth floor.

The accounts of Lycett, Browne-Swinburne & Douglass Ltd – which has 16 offices across the UK – show turnover rose by 16% in 2023 to £25.14m, while operating profit jumped from £3.124m to £3.77m. Pre-tax profit, before exceptional items, rose to £4.9m from £3.02m, and after exceptional items fell from £3.02m to £1.27m.

The company’s staff costs increased from £13.2m to £14.96m, reflecting the increase in headcount and the annual review of staff salaries. During the year, the company increased its headcount from 225 to 237, with over 100 staff based at Bank House in Newcastle.

In the accounts report, the directors said: “A healthy 16 per cent increase in turnover to £25,143,825 and a notable increase in operating profit to £3,772,890 enabled the company to strengthen its financial position and market strength. Profit before tax before exceptional items, boosted by dividends from subsidiaries, rose to £4,948,195 from £3,021,157 in 2022.”

“Our business lines have flourished across the board, driven by strong client retention, new client acquisitions and premium growth. The cornerstone of our success in 2023 has been our dual focus on organic growth and strategic acquisitions, including the portfolio of businesses from British Bloodstock Agency. The seamless integration of Robertson-McIsaac Ltd and GD Anderson and Co Limited has further contributed to our performance and broadened our portfolio.

“In June 2023, the business reached a significant milestone by relocating to new premises at the iconic Bank House in Newcastle city centre. Moving from Milburn House to this historic 14-storey building on a 15-year lease symbolises our progressive commercial vision and our readiness for the future. The new premises have been designed to support further expansion and modern working practices.

“Looking ahead, the company is poised to continue its balanced strategy of organic growth and strategic acquisitions. We remain committed to delivering exceptional value to our customers, fostering a vibrant workplace for our employees and increasing our contribution to the broader community. With a clear vision, our solid performance in 2023 provides a solid foundation for sustainable growth, innovation and continued success in the years ahead.”