Davenham made a pre-tax loss of £55.4 million (€60.6 million) in
the year ending June 30 2009, largely due to non-performing assets
in its property loan book, the company said.
At the end of June, the business’s asset finance portfolio was
£53.2 million, compared with £71.4 million the previous year.
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“Whilst asset values have generally fallen and SMEs are
naturally cautious about taking on further commitments, demand for
[asset finance] remains steady. This is the core of the group’s
asset offering both through hire purchase and leasing,” said David
Coates, chief executive of Davenham.
Coates added that although arrears and bad debts had increased,
these weren’t out of line with the company’s expectations.
Following a review of the business last fall, Davenham decided
to focus on its asset finance and trade finance divisions; while
ceasing new business in small ticket leasing, which had experienced
higher rates of default.
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