LONDON (Alliance News) - Curtis Banks Group PLC on Wednesday reported strong growth in profit and revenue for 2018 as its number of pensions administered increased.
In 2018, the pension provider's pretax profit increased 71% to GBP10.1 million from GBP5.9 million in 2017.
The company's revenue was cut to GBP87.8 million from GBP386.6 million. Curtis Banks's policyholder investment revenue in 2018 dropped significantly to GBP41.7 million from GBP343.0 million in 2017.
Curtis Banks's operating revenue, however, increased 5.7% to GBP46.1 million from GBP43.6 million. The company's fee income increased 3.8% to GBP35.4 million, with 87% of its fee revenue recurring.
The company's administrative expenses increased 4.0% to GBP33.6 million from GBP32.3 million, with staff costs rising 4.1% to GBP21.9 million.
Curtis Banks proposed a final dividend of 6.0 pence per share, 26% higher than 2017's final dividend of 4.75p, resulting in a total dividend for 2018 of 8.0p, 28% higher than the 6.25p distributed in 2017.
"We believe we are setting a high bar with the introduction of our new self-invested pension plan proposition. Coupled with our new distribution structure we are now well-placed to increase our organic growth of full and mid SIPPs over the next full reporting period. We are also well positioned to grow the business inorganically and are proactively exploring possible acquisitions," said Chief Executive Will Self.
Curtis Banks self-invested personal pension schemes administered increased 1.7% in 2018 to 77,739 from 76,474 the year before. The company's growth in total organic new own self-invested personal pension schemes administered slowed to 5,838 from 8,719 the year before.
The company attributed the slow down in organic growth of its own administered pensions to the release, and marketing, of a new product, after period-end, that will replace all of its current products.
Slowing organic growth is expected to continue in the first half of 2019 but then see a reversal in the second half.
Curtis Banks ended 2018 with GBP24.8 billion assets under administration, slightly higher than the GBP24.7 billion it started the year with.
Looking towards 2019, Curtis Banks said it expects to benefit from the transition it underwent in 2018. Including the launch of its new product, the company also "enhanced" its sales team.
The company also created two new businesses to expand into the commercial property market, Rivergate Legal Ltd and Templemead Property Solutions Ltd, which Curtis Banks said will aid the company's fee income revenue grow.
Self added: "The SIPP market is undergoing an evolution and, as one of the UK's leading providers, we have entered 2019 in an extremely strong position and I am confident about our prospects for growth and our broadening capability to deliver enhanced services for our customers as well as our ability to deliver against our strategic objectives."
Shares in Curtis Banks were up 2.8% Wednesday at 299.00 pence each.