Pension deficit on the mend.
Pension deficit problems have nagged GAB Robins over the last couple of years but the loss adjuster is now on course to rectifying this problem. In the past, the business has seen loss of profits in the millions – in 2005 the company posted a pre-tax profit loss of £6.5m – and a series of senior staff defections.
But now it looks like chief executive Kieran Rigby’s policy of looking beyond traditional loss adjustment business, by focusing on end to end solutions such as data management and surveying, is paying off.
Financial performance for the 12 months ending 31 December 2007 show that GAB Robins earned a pre-tax profit of £2.726m in 2007 against a loss of £426K in 2006. The 2007 profit took into account non-operational expenses such as internal group charges, pension deficits funding and legacy costs. “There has been a significant improvement on the pension deficit from some £34m noted in 2006 accounts to £25.6m in 2007 accounts and which is based on the more recent three year valuation,” said Kieran Rigby, chief executive officer at GAB Robins.
Rigby added: “Whilst flood revenues contributed, the key trend for us is that in 2008 we are set to match 2007 revenues over £36m and secure and improved adjusted pre-tax profit return approaching £3m.”
However rumors that parent company and private equity firm Brera Capital Partners will sell the loss adjustor just won’t seem to go away. GAB Robins has been owned by Brera since 1999. Both parties deny that GAB Robins is to be sold.
The rumors sprung from a report from Brera indicating it was exploring alternatives for its portfolio companies. But this is not unusual points out Edward G. Troy, chairman and CEO, of GAB Robins Global Group of Companies in a statement. “Private equity investment funds, including Brera, always explore alternatives that may enhance the value of their companies or the services they provide. That said, we do not comment on rumors and speculation in the marketplace.”
Troy added: “We are a strong, profitable global company that will continue to provide superior, innovative and cost-effective risk and claims management services to our customers, and we will continue to meet all obligations to our clients and business partners and serve them to the best of our capabilities – business as usual.”
