PSI is a little-known consolidator of insurance brokers that landed on the ASX last December. In no uncertain terms, its inaugural FY16 report was a cracker. Revenue increased 34% over FY15 with this number over 20% ahead of prospectus. The underlying NPATA at $14.3m was 15% ahead of prospectus. Remember, PSI has only been listed for 9 months. Not surprisingly the stock price has been tearing away, having doubled since IPO. Following in the footsteps of the likes of AUB Group and Steadfast, PSI is carving out a name for itself as a serious consolidator in the space having averaged an acquisition almost every month since listing. With a market cap now approaching $500m and a modestly geared balance sheet, there is every expectation acquisitional growth will continue. Of course, there's a long and undistinguished list of companies that have attempted to consolidate professional services industries and failed. However, management in PSC owns over 60% of the issued capital meaning the key players in this company are invested its ongoing success. (VIEW LINK)


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