Kensington Group has sold its direct-to-consumer business TML following a strategic review of the business.
TML, which was bought by Kensington in 2002, has been sold to Customer Financial Solutions for an undisclosed sum, with Kensington citing low levels of business generated for its sale.
Kensington has also today reported a 17 per cent increase in new business completions of £4.1bn for the year ended November 2006, compared to £3.5bn for the previous year.
However, pre-tax profits fell from £55.9m to £49.1m, though Kensington argues that the fall is partly a result of new accounting techniques, and also points out that profit before tax and goodwill impairment from the purchase of TML was up 17 per cent to £65.2m
Kensington chief executive John Maltby says: “Over the past 18 months the contribution of TML to the Kensington Group has been reducing and in 2006 it generated less than 5 per cent of our new business.
“As a result, following a strategic review, we decided to sell the business and TML will become a direct-to-consumer broker. We wish the TML team well, they have been important to the success of Kensington and we look forward to working with them in the future.”