Since it started trading, St Helen’s Finance, an independent
asset finance provider has recorded its first profit of £55,000 for
the first six months to 2008. This compares to losses of £44,000
for the same period in 2007.
The company’s turnover increased by 120 per cent year-on-year
for half year 2008, up to £669,000 from £304,000, but its expenses
also doubled for H1 2008, from £321,000 in H1 2007 to £517,000 in
H1 2008.
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St Helen’s announced month-on-month profitable trading throughout
the first six months of 2008 and established a new brokerage
department in June this year.
Its net portfolio of finance receivables has also increased 102 per
cent from £4.5m in H1 2007 to £9.2m in H1 2008 and should receive a
further £1.8m in unearned income not yet collected. St Helen’s
total current assets value, which includes cash in the bank and
debtors, has increased from £5.8m for H1 2007 to £7.6m for H1
2008.
St Helen’s Finance chairman, Rick Abbott said: “Our results, in
line with management expectations, clearly support the accuracy of
previous comments made in the Managing Director’s report for the
corresponding period last year insomuch we have negotiated the
appropriate funding lines, we have doubled the size of the
portfolio and we are trading profitably month on month. We
are pleased that the full effect of the operational gearing is
clearly being demonstrated by bottom line growth.”
St Helen’s borrowing costs have increased, but it has managed to
maintain margins by passing these increases onto its
customers.
“Our borrowings are always fixed and matched to our portfolio so we
maintain both a constant return and positive cash flow, despite any
further external movement in money costs,” Abbott said.
Furthermore, in order to manage current economic conditions and the
increasing likelihood of defaulting customers, St Helen’s has
reduced the average deal size across its portfolio and capped its
exposure to certain sectors where there is external pressure to
reduce consumer spending.
St Helens sources funding from a number of institutions and is
looking to increase its facilities and number of funders to take on
new opportunities.
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