Bradford’s Sovereign Health Care reports £11.6m turnover during 2014

Sovereign Health Care, the Bradford-based cash plan provider, has shown significant financial growth in the results for 2014.

The organisation recorded a positive pre-tax surplus, increased its turnover and reserves and paid out another record amount in claims to customers during the year.

The cash generated by Sovereign aims to create more affordable and accessible health care by paying money back towards expenses such as dental treatment, optical bills, prescription charges and physiotherapy costs.

The organisation recorded an unchanged pre-tax surplus of £1.3m and a turnover increase of £200k to £11.6m during 2014.

In addition, Sovereign’s reserves continued to significantly exceed solvency capital requirements, with its investment portfolio and cash deposits worth around £53m at the year-end, compared to £50.5m in 2013.

Furthermore, over £7m was also paid out to customers in claims during 2014, compared to £6.8m in the previous year.

As well as not having shareholders, any surplus the organisation makes is reinvested in the business or given by Gift Aid to Sovereign Health Care Charitable Trust.

The Trust made 188 grants in Bradford alone last year, which is another increase of more than £50k on the previous year’s figure.

Dr Bob Dugdale, Sovereign’s chairman, said: “I’m delighted that my first full year in post has been another successful one for the commercial business and saw continued significant donations made by the charitable trust.

“Our executive and management team have been tasked with making an annual trading surplus and continue using dividend income to help fund the charitable trust. I’m pleased to report that not only were these objectives achieved during the 12 months but we exceeded our targets for sales growth and surplus.”

Russ Piper, Sovereign’s chief executive, added: “As we entered the final full year of a pricing cycle, an increase in claims was to be expected. However, the level of that increase was unprecedented, compared to previous years.

“Our charitable giving continues to be very important to us, so it’s essential that our business operates in a manner that sustains our ability to make these donations.

“Being there for our customers and local communities when they need us most remains a key priority for us and I’m pleased to say that we certainly achieved that in 2014.”

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