Swinton focuses on "simplify" strategy as profits drop 26%

Swinton's profit after tax dropped 26 percent to £16m for the year ended 31 December 2015 (2014: £22m), from the same period last year, but highlighted that it would continue on the path of implementing its "simplify and focus strategy".

Operating profit within Swinton decreased 23 percent to £19.5m (2014: £25.06m), according to accounts filed at Companies House.

The broker also saw turnover drop 7 percent to £265.3m, compared to the £285.9m it posted last year.

Competitive

The broker declined to comment on the results.

But company secretary, Annabel Wilson, stated in the accounts statement that the market continued to remain very competitive in 2015, with lower volumes leading to the reduction in turnover.

She added the reduction in turnover was largely offset by significant operational cost savings despite a number of one off costs in relation to the company's strategy.

"These included increased consultancy and redundancy costs together with the reduction in carrying value of internally developed IT systems to reflect the planned implantation of a third part IT platform during 2016."

Branches
The number of trading branches and call centres fell 8 percent to 368 (2014: 401).

In February, Swinton said it would is close 130 branches by mid-2017. The broker, said at the time, it was "reshaping" the branch network in response to customer requirements.

The number of live polices including add on products fell from 3m last year to 2.7m in 2015, while ore policies fell to 2m (2014: 2.2m).

Swinton added that its "simplify and focus strategy" started with the sale of its Open & Direct branded Northern Ireland business, which was completed in January.

This, it said, was the "best option in balancing the needs of our customers and business".

Broking platform
Also, planned for 2016 is the replacement of the core broking platform, launch of new simplified products and further re-shape of distribution.

"Remaining legacy sales systems are planned to be migrated by the end of 2017," it was stated in the results.

"It will enable the company to operate more effectively and efficiently thereby providing a solid platform for the future, enabling a sustainable omni-channel distribution model under continued competition and increased regulatory pressures."

In September, Swinton went live on CDL, stating that it had successfully completed the "re-platform" of its retail business from SSP.

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