Cobra profits down 66%

by David Masters

Story link: Cobra profits down 66%

Cobra Holdings Plc has reported its results for the six months ending September 2008 with pre-tax profits down 66% on year despite a significant increase in revenues.

Substantial write-offs dented the acquisitive insurer’s profits, which fell to £274,000 in the six months to September, down from £801,000 in the same period during 2007.

Profit after tax was £111,000 or £0.26 per share, down from £525,000 or £1.49 per share the previous year.

The decrease in profits came despite an increase in revenues, up to £11.8 million compared to £7.4 million a year earlier.

Financial charges on five acquisitions made during the period, in addition to write-offs, were blamed for the fall in profits.

Cobra said it expects premium rates to increase during 2009, although the outlook across the financial services sector remains problematic.

The company added that it will be seeking to improve margins wherever possible, and that it is ‘well placed’ to find a way through the current uncertainty.