Abbey profits up 9%

Abbey Protection has announced a 9% increase in pre-tax profits to £9.6m.

The legal and professional fees insurer’s preliminary results for the twelve months ended 31 December 2010 show that the increase in profits was achieved on the back of a 6% rise in revenues up to £34.9m.

Earnings per share at the company, which specializes in providing services to UK small-to-medium sized enterprises, were up 8% to 6.97p, enabling a second dividend payment for 2010 of 2.3p.

Abbey also reported what it described as “steady and profitable underwriting results” with a claims ratio of 62.6%.

And the company said the outlook for the business was positive, with ongoing demand for services and opportunities ahead of the deregulation of the legal services sector in 2011.

Abbey chief executive officer Colin Davison said: “Against a backdrop of challenging market conditions, we are pleased to announce another solid set of full year results which display continued growth in both revenue and profits and demonstrate the resilience of our core business models. Heading into 2011, we are well positioned to expand both legal and tax related services, including the opportunities arising from the upcoming legal reform act.”

Chairman Tony Shearer said: “I’m delighted that Abbey Protection continues to deliver value-adding services to its clients and shareholder value with steady, long-term growth across market cycles. The second interim dividend which is payable on 25 March 2011 makes a total distribution in respect of 2010 of 4.0p per share.”