Abbey Protection – the legal fees insurance provider recorded a 6% jump in revenues in the first six months of 2011, despite tough market conditions. Revenue for the period was recorded at £18.3 million, compared with £17.3 million in H1, 2010.
Profit after tax jumped 10% to £3.8 million from £3.4 million recorded over the same period, last year.
“The results reflect the progress the group has made during the first six months of the year, against an increasingly volatile economic backdrop. The group has produced another period of sustained growth in revenues and profits, driven by a continued demand for our core services and products, together with an increasing appetite for our specialist consultancy services,” said chief executive Colin Davison.
Revenue and profits for Abbey Legal, Abbey Tax and Ibex, the principal trading divisions of Abbey Protection, grew 12% and 9% respectively over last year respectively.
However, not all business lines were growing as revenue of after the event (ATE) division dropped marginally to £0.6 million, while profit before tax was lower at £0.1 million.
Abbey attributed the drop in ATE revenues to the Law Society’s Accident Line insurance product suffering reductions in road traffic accident premiums and the yet-to-be implemented Jackson reforms. Commercial ATE sales were however, as per expectations, added Abbey.
Jackson reforms are unlikely to impact the overall business, the company observed.
“The Jackson reforms will undoubtedly impact the ATE market, but our exposure (through the Law Society’s Accident Line scheme) is significantly less than a number of our competitors, and we are already well advanced in our plans to replace this income through commercial after the event sales and other ancillary income streams,” the company said in a statement.
Pre-tax profit for Abbey Legal – which includes Abbey Legal Protection (ALP) and Abbey Legal Services (ALS) jumped 25% to £1.2 million. Profit before tax for Abbey Tax Protection (ATP) also grew by 19% during the period to £1.6 million.