Personal Group Holdings Chief Executive Officer Mark Scanlon said 2012 was a significant year of investment as earnings and revenues decreased.
The UK employee benefits company reported annual earnings before interest tax, depreciation and amortisation (EBITDA of £9.9m, a fall from the prior year's £10.2m, in line with expectations.
Revenue also met forecasts at £27.4m, down from £27.5m in 2011, due to the group's decision to cease accepting new investment business into its financial services division Berkeley Morgan from last April.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Pre-tax profits dropped to £9.4m from £10m.
Scanlon said the results reflected costs associated with growing its online offering and increasing its recruitment, including the appointment of Chief Financial Officer Mike Dugdale and Commercial Director David Walker, along with the expansion of the sales team to meet demand.
During the year, the firm launched a new iPad application to provide management with key information on clients and make services more readily available to customers.
Scanlon expects the addition of new employees and the new iPad application will facilitate progress in 2013.
Based on this confident outlook, the company proposed a 4.5% increase in the dividend of 4.65p per share.
On the macro-economic front, Scanlon said the rise in the unemployment rate and the tough financial climate did little to hurt the business as the firm continued to benefit from its "loyalty to customers".
"The amount of times we go out and meet our customers personally has gone up over the years," he told Sharecast.
"We settled over 80% of claims within 24 hours. We want to have a good reputation."
Key sectors for the company include logistics, health care, hospitality and food services while retail remains the biggest challenge due to a high turnover of staff.
Looking ahead, Scanlon said the company has a strong pipeline of projects and partnerships in the pipeline including its "second biggest contract win" in history which will be announced in due course. However, Personal Group will be taking a cautious approach to acquisitions this year, he added.
The updated forecast for 2013 earnings is revenue of £28.7m, EBITDA of £10.5m and pre-tax profit of £10m.
RD
-
How taking a two-year career break could leave a £26k hole in your pensionCareer breaks are increasingly common but it is important to take steps to protect your pension, as gaps compound over time
-
Cash in on your attic: Thousands could be sitting dormant in your storageSelling your valuables at auction could be far more lucrative than you think. We take a look at how auctions work, and some tips to help you maximise your profits
