Sale of loss adjustment division helps to stem decline
AIM-listed Resources in Insurance Group (RiIG) reported a loss before tax of £307,030 for the half-year period to 30 June 2009. The claims management consultancy halved its loss from last year, however, when it reported a deficit of £636,203.
The group’s H1 revenues stood at £972,507, down from £1.2m in the same period last year. At press time, its share price had sank 3.7% to 65p per share after it made its interim results announcement.
Executive chairman John French said the smaller deficit reflected the sale of the company’s loss adjusting division in April, which generated a trading loss of £68,224 in 2009.
“The sale of the loss adjusting division … is having a beneficial impact on operating costs and is allowing the management to focus on the development of products and services targeted at providing solutions to claims issues for major insurers.”
French added that RiIG is taking a cautiously optimistic outlook for 2009 and that it would renew the group’s £150,000 overdraft facility.