The Innovation Group profit falls 30%

Insurance software and business service provider The Innovation Group (TIG) has reported a 29% fall in profits over the six months ended 31 March 2014.

TIG reported profit before tax of £4.8m over the last half year, compared to £6.8m for the same period the previous year.

Despite this dip in profit, non-executive chairman David Thorpe was able to announce a 4% improvement to the adjusted profit before tax to £10m.

“I am pleased to report continued growth in the business, with our first-half again generating strong adjusted profit growth and excellent cash conversion,” he said. “Our strategic initiatives are progressing well with the acquisition of LAS Claims Management Ltd and the appointment of Paul Nichols as President worldwide insurer business, underpinning two significant growth areas for the business.”

The service provider also managed to improve revenue by 2% to £101.7m and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) by 11% to £14.9m.

Chief executive officer Andy Roberts said: “We have experienced a strong first half where we continued to deliver on our strategy and drive increased momentum in sales. Our efforts have resulted in the group securing new longer term, high value contracts and good cash generation.

“We made two material acquisitions in the period, which I am pleased to say are on track from both an integration and financial performance perspective.

“The business is trading in line with the board’s expectations based on our strong pipeline of new business and revenues building from contracts won in the first half and prior periods.”

Roberts also confirmed that the company would pay a dividend for the last half year. The dividend of 0.1p per share will be paid on 18 June.

Thorpe also confirmed that he would step down as chairman at year-end, after 11 years with the company.