Franchise sees turnover grow 3% to £5.8m as managing director hails the results as a “record” for the business despite profit dip.
Coversure Insurance Services, which runs the franchise of Coversure branches across the UK, reported increased revenue of £5.8m for the year ending 31 March 2015. This was 3% up on the £5.6m reported the previous year.
Managing director Bob Darling commented:
“As you’d expect we are delighted with our 2015 results. Our success is directly connected to the success of our franchise holders and their earnings have hit record levels this year. Our income reflects the excellent results that are being achieved by the 94 franchisees around the country, the dedication of their staff and the people here at HQ.”
The increased revenue was not reflected in operating profit which fell to £1.7m from £2.1m the previous year. Profit before tax also dropped from £1.9m to £1.5m. Expenses grew from £1.8m in 2014 to £2.1m for 2015. However Darling explained expenses grew due to “important strategic investment in the business”.
“We have hired top quality people to help the offices grow and prosper, invested in training our existing teams, improved our product suit working hard with insurers and invested in technology.”
The managing director pointed out that the “last three years have seen solid growth for Coversure” and said he was “extremely positive about the future”.
“Our investment in Coversure will continue to have an impact on the growth of our franchisees as together we continue to break records each month.”
Looking ahead the report stated that Coversure will look to develop niche products and services for its franchise holders and also expand its business to consumer online products which are distributed through the franchise network.
Darling is also looking forward to signing up more franchisees.
“With regard to new offices, we will not lose sight of our roots and continue to help hard working insurance professionals to set up their own business. In addition we have a very compelling proposition for existing brokers who want to grow in what is an increasingly competitive and heavily regulated marketplace. There are opportunities for them to bring their business into Coversure and we have already seen two existing brokers join the Coversure family this financial year.”
Article taken from: www.insuranceage.co.uk