In its half-yearly results, the group says Park Row’s turnover was £7.4m, 16 per cent lower than its £8.7m target and 28 per cent lower than its H1 2007 figure of £10.3m.
However, branch costs fell from £1.9m in the first half of 2007 to £0.9m for the same period this year as a result of Park Row’s cost saving initiatives and restructuring programme.
Group chief executive Steve Burnett says the losses reflect the turbulence in the mortgage and investment markets depressing consumer demand for products.
He says Park Row will look to grow its business and sales volume by recruiting more quality advisers. The firm currently has 247 advisers but is looking to grow numbers by around 10 to 15 per cent in the next year.
Overall, Royal Liver recorded an operating surplus of £2.4m. The group’s online protection provider Progress saw new business volumes rise 27 per cent, with new business allowances 42 per cent ahead of budget.
Finance director George McGregor says: “Progress had a cracking first half-year. Two things have driven that, the competitiveness of its products and the protection business that is written isn’t as correlated to mortgage transactions as its competitors.”
Burnett says: “The outlook for the sector is dominated by the worsening economic climate in both the UK and Republic of Ireland and the likely impact on our customer’s spending patterns. Resilience will be our watch word.”