Reduction is admin expenses boosted operating profit to £15.6m
Endsleigh Insurance Services posted a big spike in net profit in 2009 after costs relating to the closure of the Zurich-owned broker’s branch retail network depressed 2008 earnings.
Profit after tax for the year ended 31 December 2009 was £11.6m, up 183% on 2008’s £4.1m. The closure of the 119 retail branches, Endsleigh effectively becoming a web-based broker, resulted in an exceptional cost of £6.9m.
However, improvement in 2009 was not solely related to the lack of the one-off charge. Operating profit before the exceptional item increased 61.2% to £15.6m in 2009, from £9.7m in 2008, despite lower 2009 turnover of £58.3m versus £60.2m in 2008. The improvement was largely thanks to a 15.2% reduction in administrative expenses to £44m from £51.9m.
The company declined to comment on the results.
Earnings before interest, taxes, depreciation and amortisation, which Endsleigh considers an important measure of shareholder value, increased to £18.5m in 2009 from £7.6m in 2008 including the exceptional item, or £14.5m without it.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
No comments yet