General Capital Group Plc, the asset, property and venture
finance specialist posted an almost six-fold rise in net profit to
£2.5m in 2007 and expanded its loan portfolio by 60 per cent. But
chairman, David Hickey warned the strong performance is unlikely to
be repeated this year owing to the disruption in credit
markets.
General Capital reported a 75 per cent increase in group revenue
to £13.3m as it financed more equipment, real estate and new
enterprises bringing its total loan portfolio to £53m last
year.
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Of its total loan portfolio, venture finance was the biggest
contributor last year with 47 per cent of total lending (£25.2m).
This was a 76 per cent rise over the year before. Property lending
meanwhile, grew 61 per cent to £10.3m.
The consolidation of brokerage, Norton Folgate which General
Capital acquired in March last year, boosted total lending within
asset finance by 41 per cent to £17.9m.
Chairman, David Hickey said in a statement to shareholders that
venture finance transaction profits have become a normal part of
the revenue stream and was something that differentiated the group
from other commercial asset finance companies.
In 2007, the group made investment gains of £1.4m from its
structured lending to fund new start ups. Hickey, however, raised
caution over the ability of the venture finance division to realise
value in investments this year as liquidity constraints in the
market persist.
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By GlobalDataDuring the year, General Capital raised £10m in equity and £10m
in debt and negotiated senior debt facilities through to March
2010. Still, it would need to secure more funds this year if it is
to meet forecast growth rates, the company said. As at December 31,
2007 it had total shareholders’ funds of £19.7m.
The group also announced board changes, appointing Steve Hartley
as Group chief executive officer, Mark Edworthy as executive
director of Venture Finance. Nick Marsham remains finance director
of the group and will take on additional operational
responsibilities.
