26th Sep 2014 08:42
LONDON (Alliance News) - Pro Global Insurance Solutions PLC said it narrowed its losses in the first-half, even though revenue was affected by demerger activities.
The company, which is engaged in the acquisition and run-off of insurance companies that have ceased underwriting, posted a pretax loss of GBP1.2 million for the six months to June 30, compared with a GBP1.5 million loss a year earlier, as revenue fell to GBP11.5 million from GBP12.4 million.
Pro Global said revenue for the first-half was impacted by demerger activities as it focused on restructuring and redefining its product groups.
The group said it saw a significant upturn in its consulting revenues towards the end of the second quarter and continuing into the third quarter. It sees this trend continuing in the short-to-medium term.
The 2014 results include reorganisation and restructuring costs of GBP1.6 million. The restructuring of Pro's organisation is expected to reduce operating costs by over GBP1.0 million a year on an ongoing basis.
Pro Global, formerly known as Tawa PLC, said its focus on long term cost reduction and realignment of resources has already had a marked impact on its gross margins which improved to 38% compared with 34% a year earlier.
Looking ahead, the company said its pipeline remains strong while its technical outsourcing businesses have continued to perform well and also have a robust pipeline. However, the legacy business remains profitable but there is limited market opportunity in the short term.
"We are making rapid progress. This is shown by the improvements in Pro's Gross Margin from 34% to 38%," Chief Executive Artur Niemczewski said in a statement.
"The Pro team is fully focused on delivering Pro's Client First strategy and transforming Pro into successful services business. 2014 continues to be a year of transition but we are building solid foundations for 2015 and beyond," he added.
Pro Global Insurance Solutions shares were quoted up 4.4% at 11.48 pence per share Friday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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