Revenue and profit take a hit at AI Claims

AI Claims Solutions, a non-life insurer, suffered a fall in both revenue and pre-tax profit for the half-year ended December 31st, hit by warmer than average winter weather and the continuing reduction in accident frequency and repair cycle times.

Revenue fell 21% year-on-year from £60.1m to £47.5m, while profit before tax dropped from £1.7m to £1.2m.

Naturally, the firm was keen to emphasise that it had reduced its net debt by £3.2m to £19.1m during the period.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

In a statement the company said: "Ai Claims has delivered a creditable first half performance in challenging market conditions and continues to trade in line with management expectations. We remain confident that prudent financial management, a strong and experienced executive team and a continued focus on operational excellence will see AI Claims Solutions emerge as one of the winners in the accident management market, ready to grasp the opportunities which change inevitably brings."

The company also announced the renewal of its contract with ULR Additions, a major broker based partner, for a further period of three years with effect from 1 March 2012.

An interim dividend of 0.33p per share, equal to the amount paid last year, was proposed by the board.

The share price fell 4.9% to 1.00p.

NR