Loyalist reports decreasing revenues

The Loyalist Insurance Group Limited (TSX Venture Exchange symbol: LOY), which operates in three Ontario locations as well as Charlotte, North Carolina, has reported decreasing revenues for the year ending 2005 from $2.43 million in 2004 to $2.011 million in 2005.
The Loyalist Insurance Group Limited is a financial services holding company, involved through a subsidiary, in the retail insurance brokerage business. In Ontario, Loyalist’s brokerage operations sell various insurance products on behalf of a number of insurance underwriting companies.
Loss from operations was $266,040 in 2005 versus a loss of $56,359 in 2004, the company reported. Cash and short-term investments in trust increased to $1.05 million from $116,712 for the same period in 2004.
“This increase was primarily due to one significant commercial brokerage account written in the last quarter of 2005,” Loyalist reported. “Proceeds from previous asset sales and investments have been used to substantially reduce the company’s debt obligations.”
As a result of an August 2005 share transaction, the company’s ownership in Loyalist Group Limited was reduced from 19% to nil. The transaction resulted in a gain of $53,160.
“The company made this structural change to its investment in LGL to allow the company to focus on its profitable core operations,” Loyalist announced in a press release. “The company has attempted to eliminate operations that have to date had negative cash flow or are capital intensive with a historic low return on equity. Our management resources can be better utilized pursuing known profitable businesses.”
Loyalist Insurance Brokers, a subsidiary of the company, continues to pursue revenue growth through internal sales and its recruitment of new key personnel, the company said in a press release. The plan is to enhance this strategy over the next year.