Oval's profits and revenue down for 2009/2010 financial year

This was largely a reflection of the impact of the recession on Oval's client base, the firm said.

Oval said the reduction in income was mitigated in large part by cost savings, such that EBITDAE reduced by 12% from £18.7m in 2009 to £16.5m in 2010. EBITDAE margin was down slightly at 17% (2009: 18%).

These operating results, after £9.4m goodwill and other amortisation and £3.7 million of exceptional restructuring costs, give a loss before tax of £3.5m.

Oval added its senior net debt has fallen by £11.2m to £43.2m and Oval's borrowing levels compare very favourably with its peers.

Chairman Oliver Stocken said: "In line with all UK-based consultancy and professional services businesses, we have faced a number of challenges over the past 12 months. Our national footprint and broad sector coverage means our client base is reasonably representative of the UK economy and our fortunes closely linked to the economy as a whole.

"However, Oval has taken a number of steps to significantly strengthen its position in order to move forwards. I am certain that the market propositions we have in place, combined with the people at the core of our business, put Oval in a very strong position to be able to take advantage as the UK continues its slow recovery."

Chief executive officer Phillip Hodson (pictured) added: "2009/10 was a tough year for Oval, as it was for many advisory businesses and we have felt the combined effects of the continued economic difficulties and soft general insurance market. However, Oval's underlying performance compared favourably with many of its competitors.

"During the year we took a number of steps to improve performance management structures and processes, resulting in a complete organisational restructure. Performance is now driven by two new insurance broking and financial services boards, led by a combination of young, first-class talent. These changes are slowly starting to benefit Oval, and year upon year our new business figures continue to grow substantially.

"We intend to continue to grow the business further through a strong focus on organic growth. Acquisitions remain an important additional component. To further improve our specialist expertise, as our geographic coverage in the UK is near completion."