North East insurer Lycetts is on the acquisition trail after a successful year saw profits top £3m.
The Newcastle business, which was founded in 1961, next month moves its workforce into the new Bank House office scheme in Pilgrim Street, topping a strong year which has seen revenues and profits rise. The firm, which also has 16 bases around the UK, has published accounts covering 2022 which show turnover increased from £23.5m to £25.5m, while operating profits rose to £3.07m from £2.75m in 2021.
Pre-tax profit improved on 2021’s result of £2.67m to £3m, despite being affected by the insurance impact of Storm Arwen, along with property investments that included new offices in Godalming and its new Bank House headquarters in Newcastle. The group – which specialises in farm and estate insurance, financial services, commercial and bloodstock insurance advice – had an average of 263 employees across its UK offices, with more than 100 based in its current head office in Milburn House on Dean Street.
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The company last year signed a 15-year lease at Bank House to take 10,000sqft – the whole of the sixth floor. In the accounts, directors hailed a “strong performance” with increased revenues and “healthy” operating and pre-tax profits.
The report within the accounts said: “This success was underpinned by exceeding an 11% target for new business growth, whilst retaining and maximising upselling opportunities among existing clients, all achieved despite a prevailing hard market. Complementing our ongoing strategy for solid organic growth, we acquired GD Anderson and Co in Northamptonshire. This has helped to expand our reach in what had previously been an underserviced area of the country for the business.
“Elsewhere, significant investments were allocated for staff training, supported by the company’s appointment of a learning and development manager, which has seen the bar raised in talent recruitment. Business priorities for 2023 include accelerating the company’s effective strategy for growth, including the targeting of strategic acquisitions.”
Following publication of the accounts, chief executive Charles Foster told The Journal: “We are delighted by Lycetts’ impressive performance in 2022, underpinned by a robust business strategy and high-quality talent. Exceeding an 11% target for new business, along with a high retention rate for existing clients, proved central to our success. Despite the hard market, notable gains were achieved across household and commercial lines, and the scope for further growth continues as we eye an exciting future from our new headquarters at the landmark Bank House development in Newcastle.”
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