Bradford-based health cover provider Sovereign Healthcare continued to reverse the fall in members last year by signing up 1,000 more subscribers.

The mutual company achieved a general business profit of £1.48 million in 2011, which it said underlined its strong financial position. It increased year-on-year sales by 28 per cent and for the first time in ten years raised the overall number of cash plan customers, which now stands at around 70,000.

Chief executive Russ Piper said the organisation had absorbed higher insurance and also faced rising regulatory costs. Rising expenditure reduced Sovereign’s trading surplus to £275,000, which also reflected an investment in business development by the company. The overall profit was boosted by dividend income of £1.2 million Mr Piper said: “In 2011 new business grew by 28 per cent with large increases in the individual market compared to the previous year. Our cash plan product continues to withstand the test of the difficult economic times. With finances stretched, many people are having to make some tough spending decisions including whether they can afford their health care.

“Unfortunately, we have little control over our health and problems do arise, however our cash plan can help people to continue to afford their everyday health care so they can keep having their regular dental check-ups, eye tests and physiotherapy, even complementary therapy. Our cash plan is designed to be used and pay back towards health care costs and that's exactly what it does.

“The health care market is, and will continue to be, affected by changes to how health care is delivered, whether this is through the types of treatment offered by the NHS, who provides the treatment or how it is paid for.

“To aid growth we will continue to monitor changes in health care provision and consider how our products can be adapted to best meet the needs of our customers.”

Mr Piper said after holding its cash plan subscription levels for five years, Sovereign had increased monthly cash plan rates by 13 per cent, with the entry level plan rising from £1.80 a month to £2.04. He said the increase was below the increase in the retail price Index and the Consumer Price Index. During 2011, the Sovereign Health Care Charitable Trust donated £750,000 in support of charities.

Mr Piper said: “We are very proud of the work the Charitable Trust does, which over the past four years has made over £4 million in donations. We experienced a huge increase in requests last year, which came as no surprise given the difficulties charities have faced with regards to obtaining funding.”