IT finance provider Syscap has reported a 40%
earnings boost in its latest annual results, helped by nearly 30%
growth in business volume in the professional services sector.
The report for the UK firm’s financial year
2012, which ended 31 March, showed the company’s EBITDA grew 40% to
£1.47m from £1.05m in the previous reporting period.
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Syscap saw total new business up 6%
year-on-year to £121.7m, with 29% growth in lending to the
professions sector – predominantly to small- and medium-sized legal
firms.
John Allbrook, Syscap’s chairman, told
Leasing Life the growth was down to a combination of
greater demand from SME law firms and Syscap targeting business in
the legal sector.
In February Syscap signed a deal to become the
exclusive funding partner of trade organisation the Law
Society.
Much of the new business in the professions
sector was in the form of working capital loans although the
technology lender also said there was slight investment increase in
IT equipment leasing.
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By GlobalDataPhilip White, chief executive of Syscap, said:
“We’ve seen an improved sentiment to invest but I wouldn’t say
we’ve seen a radical shift – it is still a slow burn.”
The broker and lender also saw a 10%
year-on-year rise in new business through its vendor segment
although lending to the public sector was down year-on-year.
Syscap’s report also revealed the firm had
increased its earnings margin by two and a half percentage points
and reduced its debt by converting outstanding loan notes into
£30.3m of equity, resulting in total net assets of £12m.
Also speaking to Leasing Life, White
said the company was pleased with year’s performance.
He said: “As a business we have continued to
set the bar high. The results in the context of the market are good
and I think the results in the context of year-on-year growth are
good but it is still part of a medium term recovery plan so we are
not getting carried away with it.”
grant.collinson@vrlfinancialnews.com
