Henderson considers southern expansion after 2013 growth

Leeds-based broker Henderson is considering expanding in the south of England following a year of revenue and profit growth in 2013.

Founder and chief executive Joe Henderson told Insurance Times: “We need to improve our geographical spread. We are underweight in the south in particular and we are looking at that.”

He added that the company was considering expansion both organically and through acquisition.

Results filed with Companies House show Henderson brought in turnover of £22.5m in the year to 30 April 2013, up 5% on the £21.5m it made the previous financial year.

Profit before tax rose 8.1% to £1.7m (2012: £1.5m), while profit after tax and minority interests was up 13.1% to £1.1m (2012: £981,113).

The improved results come despite tough times for brokers amid the current economic downturn.

Henderson said he was pleased with the results. He said: “The profit could have been more, but we have taken the opportunity again to make further investments that will come to fruition in the current year.”

He said the company had spent about £1m on new buildings and computer systems, and a similar amount on new staff.

Henderson said the investments made in previous years are starting to pay off. In the first half of its current financial year, he said revenues were up by about 11% and profits were up by “significantly more”.

He said: “It is almost like the recession has done us a bit of good in that it has made us take a detailed look at the business. We are now managing the business far better.”

Henderson said that his company was looking at acquisitions, but not finding attractive opportunities to buy. He said: “We won’t pay over the odds even if it is for strategic reasons.

“The biggest problem we have is that most principals can’t make their mind up whether to sell or keep it – they want it both ways. We just walk away from that.”