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Sesame reports loss of £1m

Sesame has lost £1m in the first half of 2009, compared to a profit of £2m for the same period last year.

Sesame announced in June 2009 that it is in discussions with Skandia UK to acquire Bankhall and Premier Mortgage Services.

Despite the fall in profit, Friends Provident insists that the transaction is not expected to require any additional funding from the Friends group to Sesame.

In its interim results Friends says the takeover, which is currently going through due diligence, would result in a 3,000-strong appointed representative network and a service business supporting over 1,500 firms.

Pantheon Financial also saw a drop in profits in the first half of this year, down 50 per cent from £2m in 2008 to £1m this year.

Friends blames the losses at Sesame and Pantheon Financial on economic conditions.

The interim report states: “Economic conditions in the UK have reduced revenues year-on-year for both Sesame and Pantheon. In each case, careful management of operating costs has offset the impact on underlying profit. However, we expect the full year underlying profit for Sesame to be below the £10m reported in 2008, which benefited from a number of one-off items.”

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