An insurance broker made losses of £2.5 million after it paid huge bonuses to directors as part of a management buyout.

Aston Scott, based in West Malling, restructured in May last year as its founder Andrew Scott stepped back to work as an independent consultant, although he remains a significant investor in the business.

The firm’s latest accounts filed to Companies House show a £2.5 million bonus was paid to directors.

While Aston Scott would not reveal who received the money, they confirmed it was part of the management buyout led by new executive chairman Peter Blanc, a former retail chief executive at insurance giant Arthur J Gallagher.

Under the restructure, chief executive Heidi Carslaw and group resources director Sarah Locke remained in their existing roles.

The deal also made private equity company Bowmark Capital a major shareholder.

Turnover from fees and commission increased 6.4% to £17.9 million at the risk management and insurance broking group, which employs about 240 people.

Operating profit grew by 22.1% to £1.7 million in the year to the end of June, while earnings before interest, taxes and other charges reached £5.4 million, compared with £4.8 million in 2014.

Directors said they expected the results to improve in the year ahead and that the bonus would not be repeated in future years.

Executive chairman Peter Blanc said: “At a time when most brokers are struggling to grow organically, it is extremely heartening to see such a solid performance.

“We aim to build on these solid foundations with targeted acquisitions over the coming year to supplement our strong organic performance.”

The firm, which has 13 offices across the UK, including one in Sheerness, took over Essex-based First Commercial, which also trades as Renovation Plan, in January.