Davenham Group has confirmed it is
looking for a buyer. The AIM-listed company, whose asset finance
portfolio exceeds £50 million (€57.7 million), said it was looking
for a bidder who could take on the whole group or buy one of its

“All options are being considered, whether
that is an acquisition as a whole or of parts of the group,” a
spokesperson said.

Sources claim Davenham’s shareholders, which
include institutional investors such as Perseus Holdings and ACP
Capital, have “given up” on achieving any significant return on
their investment.

In the year ending 30 June 2009,
Manchester-based Davenham made a £55.4 million loss, largely
attributable to its property finance book, which went bad following
the global economic turmoil.

Davenham’s asset finance arm, however, was one
of the profitable segments, recording a £6.8 million gross profit
for the year.

Davenham ceased writing new business in small
ticket leasing and professional loans last year, although it kept
its large ticket business, including Manor Credit, open.

Thus far, Davenham’s advisers, Hawkpoint
Partners, have received around 85 enquiries from companies
interested in buying parts of the business or its assets, although
a proportion were ‘bottom feeders’ looking to buy debt at deep

Jason T Hesse