Lycetts returns to profit in 2019

Lycetts Holdings has posted an increase in turnover and a return to profit for the year ended 31 December 2019.

The broker and financial adviser said in a statement that it had achieved a pre-tax profit of £1.29m in 2019, up from the pre-tax loss of £224,878 reported in 2018.

In addition, its turnover rose to £22.67m in 2019, compared to £21.60m in 2018 for the broker which is owned by Ecclesiastical.

According to a document filed on Companies House, Lycetts also posted an operating profit of £1.36m in 2019, an improvement on the operating loss of £180,180 in the preceding year.

Meanwhile, its administrative expenses were slightly lower in 2019 at £21.31m (2018: £21.78m). The average number of employees in 2019 was 288, compared to 282 in the preceding year.

Investment
Lycetts stated that its results had been driven by a sustained programme in investment in talent, operations and infrastructure.

“This strong set of results was achieved against the backdrop of widespread business uncertainty and a weak growth rate for the wider UK economy,” said Charles Foster, Lycetts chief executive officer.

He added: “Our clients have faced a great many challenges, and continue to do so in the wake of the coronavirus pandemic.

“But we have continued to deliver on our core principles of professional integrity and exceptional service standards, helping to provide security and reassurance during these testing times.”

The business has also recently undergone a strategic restructure, creating a single insurance division to replace the group’s separate commercial and private client departments.

Deal
In addition, Lycetts bought broker Robertson-McIsaac during 2019, with the aim to “broaden its reach and enhance its client offerings”.

According to the Companies House document, the deal cost the business a total of £2.03m.  

“We will continue to pursue a balanced strategy of organic growth and targeted, value-adding acquisitions that align with our brand values and corporate culture,” Foster added.

He further noted that the broker’s commitment to recruiting top industry talent, while focusing on professional and personal development of all employees, had “remained resolute” over the year.

“In addition, a new IT infrastructure paved the way for significant, group-wide productivity gains by streamlining our operations and enabling us to respond more dynamically to changing customer needs,” Foster concluded.

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