Swinton News Update: Profits Take A Serious Nose Dive
Swinton news update: Amidst confirmation of redundancies at the car insurance company, Swinton have confirmed that their profits have dropped by 48%.
Earlier in 2013 Swinton were fined £7.4m by the Financial Conduct Authority due to their sales tacticsfor the monthly add-ons they offer. They were accused of using aggressive tactics as well as quite simply mis-selling the products they were endorsing. This however is not included in the financial reports for 2013.
During 2012, major insurance company Swinton were forced to report that their post-tax profits dropped by 50% compared to the year before. This number forced the company to draw in the boundaries for the sale of monthly add-on products. The official numbers for 2012 report that the profits fell from £36.1m in 2011 to just £18.9m for 2012.
In addition to this, the annual turnover slumped by 8% and read just £301.4m.
Swinton were forced to roll out a redundancy scheme that removed a total of 120 jobs, covering a number of locations, from their roster and have had to call in official consultants with regards to their financial situation.
The locations that are expected to be affected includes Halifax, Manchester and the national sales management. Halifax will be hit hardest with 60 people expected to lose their jobs, Manchester just 10 staff and the national sales management looking at 50 staff.
“In its 2012 financial report, the broker stated: “Operating profit before share scheme and exceptional costs showed a 40% reduction compared to the prior year which is largely as a result of the reduced volume of sales of monthly add-on products, an increase in marketing spend and an increase in external consultancy advice.”
Meanwhile, chief executive Christophe Bardet added: “In 2012, we took significant steps to improve customer outcomes. We acted quickly to mitigate the effects of increased competition through more marketing investment and by strengthening our leadership team.
“We established a long-term growth strategy focused on improving customer outcomes and deepening customer relationships.”
By the end of 2014, the broker stated that it expects to reduce the number of its branches to some 400 through mergers.”
Some elements of this article were originally published on www.insuranceage.co.uk
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