Directors' Report & Financial Statements - page 6

International Schools & Humanities Division
This part of the group led by Janet Jenkinson continues to grow with an increase in revenue of 22% to £356,897 (£292,329).
The NGO sector has contributed valuable revenue and fees and we now have 9 Charity and NGO clients making annual
retirement plan contributions of over US$1 million per annum which combined with the continued growth in our
international schools business (we now serve 47 international schools) make total IRP contributions in excess of US$3million
per annum and total funds under management in Luxembourg of US$ 20 million.
International Employee Benefits Division
Turnover in this division fell by a further 15% in this year directly as a result of the ending of commission payable on new
pension plans. Perversely the Division did well in all other respects with 6 new US companies contracting with us to look
after their UK employees on board.
The replacement of initial GPPP commissions is gradually being replaced as recurring revenue for the year 13/14 is already
projected at £250,000+. We also successfully completed the build and launch of StaffChoice our web based flexible benefits
portal and this is gradually being rolled out across our membership.
Sadly the group as a whole was shocked and saddened by the sudden death of this Division’s Director, Phil Rooney in
February 2014.
Sports Media & Entertainment Division
Mark Hutchinson the Division’s Director left the Group in early 2013 to start his own business and under the terms of his
contract was allowed to take with him the professional football client base that he brought with him, we wish Mark every
success. Post the end of the year under question the Board will be given a proposal in April to sell the rump of this Division’s
client base as it no longer forms part of our core strategy. Turnover for the year in question was £86,405 (£133,603)
Other revenue
The Group’s wholly owned recurring income from prior acquisitions came in at £193,616 (£231,253) and total recurring
income for the group was again steady at approximately 50% of gross revenue.
Other developments
So all things considered whilst the bottom line results are somewhat disappointing, we performed well in achieving a total
revenue only slightly down at £1,977,617 (2011/12 - £1,984,447).
Our overheads were affected negatively by increases in the following areas:
1. 41% increase in legal fees
2. 16% increase in salaries
3. 33% increase in travel and associated costs.
4. 30% increase in our Professional Indemnity Insurance premium
These four areas alone accounted for an increase in expenditure of £110,000 and although saving were made in other areas
increase costs reduced Our trading profit expressed as earnings before interest, depreciation and amortisation (EBITDA) was
down at £114,011 (£168,804) and net taxable profit came in at £29,200 (£89,575).
P D Beard
Founder and Executive Chairman
Date: 26 March 2014
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