Northern Ireland’s biggest IT firm saw a decrease of 73 in its workforce during 2023, its accounts have shown.
Allstate NI’s annual report and financial statements for last year record 2,113 workers, down 3% from 2,186. Job losses were announced to staff at the company in October 2023.
The company provides IT services to insurance giant the Allstate Corporation in the US, and its subsidiaries.
A strategic report filed with the accounts said the company had been “transforming to give customers the best experience at the lowest price”.
The report said that in 2023, it had made substantial progress with advancing growth, including continued “cost efficiencies” and a new property liability technology platform.
It said: “The drivers of turnover increase in the company are volume reductions for employee and contractor billable hours, offset by the recharge of restructuring expenses and favourable exchange rates.”
It said the drivers of a cost of sales increase of over £8m were the cost of the transformative growth programme and salary inflation. However, the profit margin from its turnover was “in the expected range”.
Turnover rose from £121.6m to £132.1m in 2023, with the cost of sales climbing from £106m to £114.6m. Pre-tax profit rose from £4.6m to £4.9m.
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It said that inflation was impacting salary and other operating costs, while climate change was “creating uncertainties for all businesses”.
However, the report reaffirmed its commitment to Northern Ireland. “There is a cost advantage to doing business in NI, the workforce is skilled and experienced, and our technological capability is high.
“These are key factors in the ability of the company to help deliver Allstate’s transformative growth strategy. The company will continue to contribute to the global transformation and ongoing operational efficiencies. Investment in R&D will remain a priority.”
Overall, it said the directors believe the company is “well-placed to manage its business risks successfully despite the current uncertain economic outlook…
“In the event of an extreme downturn in the US dollar to sterling exchange rate, the company can avail of a parent company loan facility of up to $30m.”
Over the year, the number of people working in production dropped by 80, from 2,111 to 2,031. However, the number of people employed in administration climbed form 75 to 82.
But despite the fall in overall numbers, its pay bill increased from £103.7m to £113.9m.
Like other IT firms, the trend for hybrid working has led the company to reduce its office space. During 2023, it put one-third of its £30m Belfast city centre office block up for rent.
The offices opened at Mays Meadow next to Lanyon Place Station in 2018 and were described as NI’s biggest new office development for 15 years.
In May that year, it gave up its 30,000 sq ft office in Strabane, when the lease on the building expired. In April this year, it opened the new Allstate NI office at the innovation centre at Catalyst in Derry.
It previously abandoned plans to move into the new 52,000 sq ft Ebrington Plaza building in Derry.