Protection sales and broker training pushed Pink into the black this year
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Pink Home Loans says it is confident it will report a profit for 2011 after bolstering its protection sales and encouraging brokers to make the most of their client banks.
Advance Mortgage Funding, which trades as Pink Home Loans, filed its 2010 accounts on October 5 which show a pre-tax loss of £1.8m compared with a £3.2m loss in 2009. Its 2010 loss includes an impairment of £2.3m for BDS Mortgage Group, which it acquired in early 2008.
But the network, which LSL Property Services bought from Skipton Building Society in 2010, now claims it is making a small profit on a monthly basis.
David Copland, chief executive of Pink, says that since April the network has hosted a number of roadshows to train appointed representatives on how to use their client bank better and boost protection sales.
He says: “Last year was difficult due to market conditions, but we managed to keep our cost base down while increasing our income.
“Since our sale to LSL we have a clear strategy and a focussed future. The beginning of the year was tough, but there has been a marked improvement in the business’ fortunes over the past six months and it is now trading profitably.”
The results also reveal the network lost 178 advisers in 2010, but gained 89. Despite this, the overall value of lending through Pink was static compared with the previous year at £2.2bn.
In April Pink announced that it was to merge the BDS network into its own.
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