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Tenet reports 18% rise in profit after paying out £3m in claims

Tenet has reported a pre-tax profit of £355,414 for the year to the end of September 2014, up 18 per cent on a profit of £301,183 for 2013.

The group, which includes its insurance arm Paragon, increased turnover by 6 per cent, from £118m in 2013 to £125m.

Tenet says its investment network Connect saw an increase in turnover of 9 per cent, and its mortgage network Lime saw turnover increase by 42 per cent.

The network paid out £3.2m in complaints settlements during the year, of which it says a large proportion relates to Arch cru.

It has set aside an additional £2.1m for liabilities, which it says relates to “historic advice”, but declined to give further details.

The network’s total amount of claims provision, including that set aside in previous years, is £7.1m as at the end of September.

Tenet says it received one complaint during the year regarding the sale of a product not approved by the group through a firm it had not authorised to give advice. It says no provision has been made for this in the accounts as it does not believe there to be any probable loss.

Tenet finance director Caroline Bradley declined to say how much the claim is worth, but says: “The fact we have made a note suggests it is not a small claim.

“Sometimes an appointed representative will set up another company which sells a product which has nothing to do with Tenet. Claims management companies then tend to look for whoever has the deepest pockets.”

Tenet declined to give specific details on its member numbers.

Bradley says: “Turnover for Connect is up 9 per cent, which is from slightly fewer members, but those that have left tend to be smaller and less profitable members.”

Tenet chief executive Martin Greenwood says: “The group further continues to invest in the development of the Tenet Advantage system and ongoing training and support to members. Administration expenses grew 5 per cent to £19.1m to support the growth of the business.

“The group’s balance sheet at 30 September 2014 remains strong with £21.7m cash at bank and £28.9m net assets.”

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  1. Ouch! But at least they seem to have weathered it and even managed to turn a profit, albeit only a modest one.

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