PSC Insurance - Acquisitions Driving Growth

Dean Fergie

Cyan Investment Management

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)


Dean Fergie
Director & Portfolio Manager
Cyan Investment Management

Dean has over 25 years experience in the funds management industry covering all major asset classes. He holds as Master of Applied Finance and is a Graduate of the Australian Institute of Company Directors.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.