Profits at 123.ie fall despite broker cutting back on workforce and its costs
Profits at online insurance broker 123.ie fell from €8.4m in the financial year to the end of March 2014 to €6m in the nine-month period to the end of December 2014.
The reason for the differing time periods is due to 123.ie moving its financial year from the end of March to the end of December to match up with its parent company, RSA.
Although it is not entirely comparable due to the difference time periods, on a month by month basis profits were down from just under €700,000 a month to about €666,100.
Accounts just filed for 123 Money, which trades as 123.ie, shows that revenue dropped from €37.8m in the year to the end of March 2014 to €25m in the period to the end of December 2014, or about €3.2m to €2.8m on a month by month basis. Operating expenses were cut from €26.1m to €16.7m, or €2.2m compared to €1.9m on a month by month basis.
The average number of staff at the firm was cut from 300 in the year to the end of March compared to 280 in the period to the end of December.
123.ie's directors said: "The company responded to market pressure during the period, resulting in reduced turnover on some product lines.
"Management took corresponding action to reduce costs through tight expense management, automation and efficiency in core processes."
123 was bought by RSA Ireland for €65m in late 2010. RSA is currently in takeover talks with Zurich, which has made a £5.6bn offer for RSA.
Zurich made a revised approach worth 550p a share in August.
RSA has asked the British Takeover Panel to extend the deadline for the deal until 22 September as the two sides look to hammer out an agreement.