Abbey Protection profits rise 6%

Abbey Protection posted a 6% rise in pre-tax profits to £8.7m in 2009 as revenue (before investment income) increased 15% to £32.5m.

The legal expenses provider, listed on AIM, also recorded a 9% increase in EBITDA to £8.7m and said its claims ration remained "steady" at 63.2% (2008: 63.9%).

Highlights

• 6% growth in pre-tax profits to £8.7m
• Revenue (before investment income) up 15% to £32.5m
• 9% increase in EBITDA to £8.7m
• Steady claims ratio of 63.2% (2008: 63.9%)
• Cash and financial investment balances of £37.1m
• Shareholders' funds up 16% to £22.4m
• Second dividend of 2.1p, making total dividend in respect of the year ended 31 December 2009 of 3.7p per share (2008: total dividend 3.5p)
• Outlook stable, with strong demand for services

Chief executive Colin Davison said: "I'm delighted to report another strong set of full year results for the group, which have once again been achieved against the backdrop of challenging economic conditions.

"The results mark a decade of increased revenues and earnings for Abbey Protection, which is testament to the disciplined underwriting and strong risk management across the group. The successful integration of Accountax into the group this year has been particularly pleasing and we can look forward to 2010 with confidence."

Tony Shearer, chairman, added: "Abbey Protection has yet again underlined the strength of its non-cyclical business model and the continued ability to provide shareholders with long term, sustainable growth in a prolonged, difficult market environment.

"The second interim dividend which is payable on 26 March 2010 makes a total distribution in respect of 2009 of 3.7p."