Chief executive Richard Griffiths says the delay and phased implementation of the HIP program and the difficulties in the mortgage and property industries has “obviously impacted the Group’s profitability for the year ended 21 December 2007.”
The Group saw turnover increase by 11 per cent to £32.4m, up from £29.2m in 2006. Gross profit was up by 6 per cent to £8.2m, from £7.7m in 2006.
The Group’s core business, Network Data Limited, grew business volumes at approximately 11 per cent.
The firm says the NDL business experienced a less severe downturn than the market as a whole, which it claims is evidence of the robustness of the NDL business model.
NDL saw a profit before tax of £2.35m in 2007, up from £1.86m in 2006.
As of 31 December 2007, Network Data had 511 appointed representatives.
The gross margin for NDL declined from 27 per cent in 2006 to 35.5 per cent in 2007 which is in line with the firm’s expectations. It says it anticipates that its longer term sustainable gross margin will settle at just about the 20 per cent.