After a somewhat hesitant start to the year, the insurance services provider Charles Taylor Consulting is in an optimistic mood. Its chairman, Rupert Robson, cites the “impact” of the group’s new chief executive officer, David Marock, who took the role in July 2011: “David initiated a thorough business review and planning process to identify and capture profitable growth by building on the group's strong fundamentals. The new strategy is already delivering benefits.”
But though the revenue for the year ended 31 December 2011 was £102.5m – an increase of 3 per cent from £99.1m in 2010 – the company posted a profit before tax of £6.38m, a drop of 49 per cent (2010: £12.48m). Adjusted profit before tax was down from £14.6m in 2010 to £9.2m last year, slightly lower than what the markets had been expecting.
In its announcement, the company claimed that initiatives to improve its cash flow are showing signs of progress and it anticipates that the business will perform well over the coming year, despite the difficult economic environment.
Net debt at 31 December was £34.0m, compared to £36.3m at the previous year end and £38.6m at the half-year.
The group’s professional services businesses delivered overall revenue that was up 3.6 per cent to £101.4m (2010: £97.9m), while the management services business increased revenue by 3 per cent on the year.
Robson added: “The new strategy is already delivering benefits, with initiatives to drive organic growth underway across the group and action taken to drive down debt reducing the Group’s borrowings at the year-end. We have also taken important steps in clarifying our run-off business strategy and as a result have decided not to acquire further non-life run-off insurance companies.”