The company’s profit before tax fell 13% last year, and it predicts ‘continued pressure’ into this year
Perkins Slade is expecting tough conditions in the insurance market and wider economy to continue after its profit before tax slumped 13% to £78,153 in the year to 31 August 2011, from an adjusted profit of £90,130 for the same period in 2010.
The adjustment to the 2010 profit strips out the effect of the one-off gain of £446,969 from the sale of its Petersfield operations. With the gain included, 2010 profit was £537,099.
The profit slump came on the back of a 4% drop in turnover to £5.61m from £5.87m. Perkins Slade said that this was down to the impact of the sale of the Petersfield operations and the effects of the recession on clients and new business activities.
Administrative expenses also fell 4% to £5.6m from £5.85m, which the company attributed to tight control over its cost base.
“The soft market conditions referred to in recent years’ directors’ reports have continued, with the result that commission earnings have remained under pressure,” the company said in its results filing with Companies House.
It added: “Due to the challenging economic climate, 2012 is expected to remain difficult for many of our clients, which in turn will see continued pressure on our earnings.”