Expense cuts lift Lowndes profits

LOWNDES Lambert, the insurance broker, increased broking profits by more than 150 per cent last year to pounds 4.1m thanks to control of expenses, writes Paul Durman.

This underpinned an 11 per cent rise in pre-tax profits to pounds 10.3m despite a pounds 2.1m fall in interest receipts to pounds 3.8m. Brokers traditionally make much of their money from interest on cash held but this income has been depleted by low interest rates.

Brokerage income in the year to end-March grew from pounds 48.6m to pounds 53.7m. Richard Shaw, chairman, hopes to see a further improvement this year. A final dividend of 9p increases the total by 7 per cent to 13.5p a share. Earnings per share increased to 28p from 25.8p.