Swinton Insurance Group, the high street broker that has been shutting down dozens of branches across the UK, announced yesterday that its profits took a substantial hit last year.
Profits declined by 26% to £16.1 million for the year that ended on December 31, 2015, due to tough market competition, The Business Desk
reported. Revenues dropped by 7% to £265.3 million.
Operating profits fell by 23% to £19.4 million as the reduction in turnover was mainly offset by significant cost savings, the report said.
Total staffing costs went down from £126.5 million to £119.8 million as the broker slashed its workforce by 261 to 3,766 in 2015.
Restructuring expenses amounted to £6.9 million as the number of Swinton’s trading and call centres decreased by 33 to 368.
Swinton’s directors received a total of £1.65 million, including company contributions paid to pension schemes, according to The Business Desk.
The Manchester-based broker announced its latest financial results amid reports of its impending move to its new headquarters. Swinton is set to relocate 1,000 employees from existing offices on Whitworth Street and Great Marlborough Street to a new building, 101 Embankment.
The new headquarters is expected to house Swinton’s modern contact centre. The move is part of a wider restructuring plan, which also includes the closure of 130 branches nationwide by the middle of 2017.
“We are investing in our network of high street branches to create a smaller number of more efficient branches and a modern contact centre. These changes reflect how our customers choose to engage with us,” a company spokesman told the Lincolnshire Echo
An earlier report by This is Money
claimed that the closures will result in job losses, including branch manager roles.
Swinton moving to new headquarters
Swinton Insurance to shut down Lincolnshire branch