News Archive
Merlin's financial results year ended April 2010
18/08/2010
Merlin Claims Services Group has published its audited financial statements for the year ended April 2010. The accounts and Chief Executives report confirm the completion of the financial restructuring that was completed in March, reducing debt by £75m and improving ongoing profitability on a pro-forma basis by around £8.5m.
The restructuring meant that the Board and its auditors were able to give the business a clean going concern opinion rather than the uncertainty reported in the previous accounts. Richard Webster, CEO, reported that the restructuring has created a stable financial platform for future growth and investment.
The business achieved an adjusted operating profit of £2.4m in the year, down from £5.9m last year on turnover 4% lower at £62m. The reduction in profit is due to lower claims numbers and ongoing investment in systems, facilities, and hardware to continue the development of our Total Claims Management Solution. In addition, the contract with Legal & General is in its first year, and has meant additional set-up costs for the business. Other sizeable costs include the opening of a new a new Manchester service centre in February and several key senior appointments to strengthen our management team in preparation for growth. This result demonstrates that the business is profitable at the operating level and can service its debt under the new financing structure, even in very quiet years.
Mr Webster went on to state that despite the fact that claims volumes were depressed due to very benign weather conditions through the year the business had continued to focus on it’s long term development. Merlin has demonstrated that its Total Claims Management Solution does deliver significant reductions in indemnity spend, whilst delivering high levels of customer service, via its relationship with Legal and General. Merlin will continue to invest in more system and process improvements to enhance further these savings and to continue to improve service delivery to all of its current and future clients.
For further information please contact:
Hayley Tea
Peak Marketing & Communication Services Ltd
020 8661 2444
hayley.tea@peak-marketing.co.uk
