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February 1, 2010updated 12 Apr 2017 4:27pm

Uncertainty over Davenham future

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 arms.

By Jason T

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 arms.

“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 discounts.

Jason T Hesse

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