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Loss of business related to sanctions cut broker’s revenues
Loss of business caused by EU sanctions on Iran have helped push United Insurance Brokers (UIB) into a 2011 loss.
The London-based broker, which does business internationally, made an after-tax loss of £596,614 in the year to 31 December 2011, compared with a profit of £512,555 in 2010, a Companies House filing reveals.
UIB’s loss before tax, which strips out an £82,470 tax credit, was £679,084 in 2011, compared with a profit before tax of £874,892 in 2010.
Turnover dropped by almost 5% to £19.7m (2010: £20.6m), while administrative expenses rose by 4.2% to £20.9m (2010: £20m).
UIB chief executive Philip Tuite Dalton said exceptional factors had hit 2011 results. “Revenue was negatively impacted by the imposition of EU sanctions against Iran, causing the loss of a sizeable book of business,” he said, “and the relative weakness of the US dollar against sterling compared to the prior year impacted our dollar denominated revenue.
“We also incurred a number of legacy costs that are one-off in nature and therefore unlikely to recur.”
However, Tuite Dalton was sanguine about the broker’s 2012 performance.
He said: “Despite the loss of business in 2011 UIB Limited, there has been strong growth in revenue at the start of 2012 and together with stable costs there will be a significant improvement in 2012.”
