Insured Group has reported an unaudited after-tax profit of $1.39 million for the year ending June 30.

It follows an audited after-tax loss of $2.56 million for the 2011 financial year.

The profit came despite a 42% drop in revenue to $2.1 million, from $3.6 million last year.

In a report to the New Zealand Stock Exchange, Insured Group directors say the repayment of $4.18 million of debt enabled the return to profit. 

But the company must still repay $3 million to St George Bank by September 30.

The directors say there are no terms to extend the loan, although extensions have been granted in the past. They expect to repay a “significant proportion” before the deadline.

Insured Group’s current assets stood at $3.3 million on June 30. With non-current assets added, it has total assets of $13.95 million.

Total liabilities were $10.8 million, giving net assets of $3 million.

At June 30 last year total assets were $16.6 million and total liabilities $17.4 million, making a net deficit of $839,000.

Insured Group held $590,000 cash at the year-end, compared with $2 million last year.

The directors say the company is continuing to seek investors after its recent $2 million capital-raising was abandoned. They expect revenue growth in the 2013 financial year from the joint venture with Priority One Network.

After abandoning an Australian Securities Exchange (ASX) listing, Insured Group will stay listed on the New Zealand exchange.

“The company will continue to reduce its remaining debt and strengthen its statement of financial position to seek quotation on the ASX in the medium term, with the prospect remaining of being dual-listed,” the directors’ statement said.

Insured Group has found a New Zealand-based director – a requirement for listing on the NZ exchange – appointing Jonathon Gilbert, a director with a Wellington IT company.

MD Wayne Miller says Mr Gilbert will provide expertise for subsidiary company Advanced Insurance Technologies, which is responsible for the delivery of online insurance to the Priority One Network.