Claims services provider Stream Group has reported a net loss of $12.82 million for the year to June 30, as bad investments took their toll.

The figure compares with a loss of $2.38 million the previous year, while revenue was up 17.4% to $34.63 million.

Stream last month announced the appointment of CEO Gavin Dixon, most recently COO of New Zealand life insurer Sovereign, while Lawrence Case was made Chairman.

Mr Case told insuranceNEWS.com.au the acquisitions of loss adjuster Cerno and Melbourne Technology Group, operating as National Insurance Replacement Services, were responsible for $7.8 million of the loss, and UK start-up costs accounted for $2.4 million.

“There were other distractions, including some very benign weather [last year], but we actually traded profitably day to day for the last quarter of the period,” Mr Case said.

“We’ve written off everything that can be written off. It is now about getting back to basics and putting the last year well and truly behind us.”

Mr Case says Stream tried to expand too quickly.

“We won’t make those mistakes again, you can be sure of that,” he said. “Gavin brings a hell of a lot of experience and expertise to the group. He is the right person to take us forward.”

Stream invested “significant funds” in Cerno but was unable to return it to profitability. It was wound up after agreement could not be reached with debt-holders.

National Insurance Replacement Services has experienced trading difficulties, but a new management team has been formed to “spearhead turnaround initiatives”.

UK operations have maintained steady growth over the past six months, and the board is optimistic they will soon deliver a trading profit.

New Zealand was the only profitable region last financial year, with Stream’s earthquake program continuing to perform well.