THB pre-tax profit up 22% despite tough conditions

London-based broking group THB made a pre-tax profit of £702,000 for the year ended 31 October 2010, up 22% from the £575,000 it made the previous financial year.

However, because of a £441,000 tax charge in 2010, compared with a £262,000 tax credit in 2009, profit after tax fell 69% to £261,000 from £837,000.

THB's underlying profit before tax, which excludes exceptional items, amortisation and impairment of intangibles, increased 47% to £5.3m from £3.6m. Underlying broking profit, which is fees and commissions less operating expenses, increased 32% to £7m from £5.3m.

Commissions and fees for the year to 31 October 2010 were £48.4m, up 5% on the £46.2m reported in the previous financial year.

Turnover at THB's Lloyd's broking operation was up 7% to £37.6m and income at the international division increased 46% over the year to 31 October 2010.

However, THB UK, the group's risk management and insurer services unit, saw income drop 14% to £7.4m from £8.6m, following the sale of a bloodstock underwriting agency book in October 2009. Excluding the impact of the bloodstock sale, the division grew income by 8% but at the expense of margins, which fell to 14.3% from 17.2%.