A&A Group moves into profit for 2015
Group CEO Tony Allen hails “greatly improved” results for the broker and its parent company.
A&A Group made a profit of £869,000 for the year ending 31 December 2015 and an operating profit of £515,000 following losses in 2014.
This compares to an operating loss of £2.5m and a loss before tax of £391,000 in 2014.
Overall turnover grew to £18.5m (2014: £16.3m). In 2014 the business said that that 2014 performace was improved on 2013.
Broking CEO Sharon Beckett noted: “The 2015 financial results are testament to the huge amount of effort that has gone into redefining the core ethos of the retail businesses over the last 12 months, reconnecting with the target customer base and focussing on it relentlessly.
“Enrichment services have really helped us to know our customers better and have been a critical enabler in improving the quality of new business we acquire.
“At the same time, validation of key risk factors pre-sale is vital for the protection of our insurer partners and significantly reduces costly post-sale validation processes.”
She continued that she expected further progress in 2016 as the retail broker “can really add value” to relationships with insurers.
For the parent company Key Topco, which includes A&A Group and underwriting facility Mulsanne, among others, the results showed shrinking losses.
Turnover was £29.9m (2014: £26.8m) and expenses were £29m (2014: £27.8m).
The operating loss decreased to £452,000 (2014: £2.7m) and the loss before tax fell to £452,000 an improvement on the £1.2m deficit posted for 2014.
Tony Allen, group CEO, commented: “After the disappointing outcome of the 2014 financial year, I am delighted to be able to report that the financial position of the group has greatly improved in 2015 and that this trajectory continues into 2016.
“Mulsanne Insurance has performed well during 2015 and continues to underwrite motor business profitably.
“It is pleasing to see the retail businesses further develop their relationships with the wider insurer market to enable Mulsanne to concentrate efforts on its target audience and focus on building a ‘best in class’ claims service through KCASL [Key Claims and Administration Services].”
In 2015 the group announced a restructure that would see Allen moving away from the retail broking side of the business to focus on underwriting.
The changes, which took place in April saw Sharon Beckett appointed as CEO of retail broking operations.
Allen added: “Now that the business has turned a corner, I feel confident in being able to hand over the reins to Sharon and her management team and that they will take the retail operations from strength to strength from a very stable position.”
Results for both Key Topco and A&A Group were restated for 2014.
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