Profit falls 10% while turnover rises 14%, because of one-off gain the previous year

Miller Insurance Services’ net profit fell 10% to £5.8m for the year ended 30 April 2010, from £6.5m in the 2008/09 financial year.

The drop in profit came despite a 14% rise in turnover to £76.9m from £67.7m, which the Lloyd’s broker attributed to major business wins and investment in new lines of business.

Miller’s tax bill was also lower in 2009/10, at £1.6m compared with £2.4m in 2008/09. Profit before tax was £7.4m versus £8.8m.

The main reason for the lower profit was a £2m one-off gain recorded in 2008/09, related to the cancellation of inter-company debt. This allowed it to generate other finance income of £1.9m in 2008/09, against a £677,000 loss in 2009/10.

If the £2m gain were stripped out, the company’s profit before tax would have increased by 9%, to £7.4m from £6.8m.

The 2009/10 results were also affected by an 86% drop in investment income to £222,000, caused by low interest rates.

Administrative expenses rose 11% to £69.9m, which Miller said was due to staff costs, including performance-related bonuses.