Genesis Capital, the Hampton-based broker for software finance,
is expected to report stagnant earnings and new business volumes
for the financial year ended March 31 2008.
Company spokeswoman Elaine Levitton said pre-tax profit for the
period is estimated to equal last year’s £350,000, while
newbusiness volumes were flat at £22m.
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Genesis, which also underwrites about five per cent of the deals
it originates, established its first regional office in Leeds early
this year.
Despite the uncertain economic outlook, Genesis will
continue to expand to meet the needs of business
partners.
“We anticipate more partners will need our service and those we
already work with will need more of it, so we are forecasting an
increase in turnover and cases during this financial year,”
Levitton said.
Towards this goal, it has also been recruiting staff, Levitton
said. In March and April, it added three people to the sales team
and expects to hire another three this summer.
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By GlobalDataHowever, it will be a while before the investments in the new
office, human resources and new systems translate into profits.
Profitability, as a result, is expected to be static in
2009.
Genesis has not been insulated from the liquidity shocks
currently experienced in financial markets.
Not surprisingly, there has been a definite shift in the credit
appetite of its funders.
“Deals that would have been easily placed last summer are now
proving quite difficult to find a home for,” Levitton
said.
Lessees are also taking a little longer to make decisions on
deals. At the same time, there has been an increase in the number
of proposals from its partners and existing customers, who are
considering more options before committing to an
acquisition.
Deflecting the generally gloomy outlook, Genesis is staying
positive, even as it acknowledges the challenges.
“A finance partner that has knowledgeable, experienced and
professional staff clearly has the ability to add far more value in
times like these than a finance partner that relies on automated or
online-style approaches to proposal acquisition, which, by its very
nature, prevents staff from developing their knowledge of different
products, profiles and underwriting concepts,” Levitton said.
