05:04, July 13 364 0

2017-07-13 05:04:07
DAC Beachcroft eyes Latin America after 10% growth in profit

DAC Beachcroft managing partner David Pollitt said the firm is looking to continue its Latin American growth after announcing incremental turnover growth and strong performances in pre-tax profits and profit per member.

The firm’s pre-tax profits grew 10 per cent from £35m last year to £39m, while showing a 20 per cent growth in profit per member from £358,000 to £432,000.

Turnover grew 2.4 per cent from £202m the previous year to £207m, while the firm’s debt dropped £1m to £19m.

The results are Pollitt’s second since becoming managing partner and he was keen to echo his sentiment of prioritising increased profitability over drastic top-line growth. This approach has seen the firm’s debt drop by £11m since his tenure began.

Gaining new panel spots, which last year included RSA, BT and Crown Commercial Services – has played a role in the firm’s financial performance and Pollitt is keen to continue investments in expansion, people and technology.

Pollitt said: “Our performance means we’re able to concentrate on this sort of investment. We’re seeing an increased demand from our clients to move into new markets and Argentina is certainly one we’re looking at whether that’s through a new office opening or an association.

“The Argentinian government opening up the insurance market makes it incredibly attractive to investors and to our clients in particular. They want to know how to get themselves established there.”

DAC Beachcroft has grown its Latin American presence in recent years and Pollitt outlined the firm’s intentions to move into this market before becoming managing partner in 2015.

The firm confirmed these intentions by opening an office in Miami followed by signing agreements with two firms; one Costa Rican, the other Peruvian.

A mix of high and low-end work, which Pollitt described as “end-to-end”, means that DAC Beachcroft is well-positioned to improve on this year’s performance.

Pollitt said: “We do a lot of occupational leases to go up the chain. It means that we’re able to move upstream but we’re not about to cast off on the work that we’re known for and are good at.

“So, as a consequence of our financial performance we are being seen as a more attractive platform which has meant that we’re seeing some really interesting work that we haven’t seen as much of in the past.”

Investment in lateral hires was illustrated during a four-partner hire from Clyde & Co and Pollitt said the firm will be continuing this over the next year as well as adding that “there are a few irons in the fire”.