Insured Group has reported a $5.8 million pre-tax profit for the year to June 30, despite making revenue of only $3.2 million.

The company has recorded $5.6 million of other revenue in its unaudited accounts by treating $4.8 million of debt reduction as income.

It comes after Insured Group secured a loan from Singapore-based Cordell James to repay an outstanding facility with St George Bank.

It now owes $788,000 to Cordell James, which also took a 16.67% stake in the group.

Insured Group’s $3.2 million revenue came from brokerage and commissions, and was up from $2.9 million the previous year.

Excluding the debt forgiveness sum, Insured Group made a pre-tax profit of $946,000, up from $234,000.

MD Wayne Miller says the company has focused on cutting operating costs and switching to business with better margins.

Company wages have been reduced to $1.3 million from $1.4 million the previous year, and administration costs are down to $533,000 from $1.8 million.

However, fees to consultants increased to $273,000 from $73,000, while travel and accommodation grew to $893,000 from $13,000.