(P&CF) has bucked the recent downward trend of some lessors and
last month reported a good year’s trading for the 12 months to
March 31 2008.
It reported an increase in pre-tax profits to £934,197 (15
months to March 31 2007: £388,748), finance receivables – net of
unearned income – up 46 per cent to a record level of £132m (31
March 2007: £90.5m), and turnover up some 30 per cent on an
annualised basis to a record £51.7m.
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During the year P&CF agreed additional funding lines with
Kaupthing Singer & Friedlander, and two other new lenders,
which totalled in excess of £25m.
Robert Murray, managing director of P&CF’s Business Finance
Division (BFD), said the division experienced a 58 per cent growth
during the period to reach £60m.
“In addition,” he said, “the Consumer Finance Division achieved
a 37 per cent growth over the previous year to a new total of £72m.
The group now has a total portfolio of receivables exceeding £160m,
which will release £29.1m of gross income over the next three to
four years.”
BFD funds a broad spread of assets ranging from light to heavy
commercial vehicles, minibuses and coaches to yellow goods and
manufacturing equipment. The small-unit sales aid market, which
finances assets such as catering, shop fitting and garage
equipment, represents around 15 per cent of the BFD portfolio.
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By GlobalDataDuring the year the BFD increased its new-business staff by 25
per cent as its broker base expanded by 30 per cent and the volume
of business written by 74 per cent to £41m.
“In recent months,” Murray said, “we have seen some competitors
in both the business finance and consumer finance sectors withdraw
from the market altogether. We have focused on tightening our
lending criteria and ensuring we make the best use of our capital.
For the immediate future we are adopting a cautious stance and
aiming to write good quality business with healthy margins.”
In the year-end statement, P&CF’s chairman, Michael
Cummings, said that he believes the current economic shakeout will
be for the long-term benefit of cautious niche players.
He said: “Although we do not anticipate growing our portfolio at
the same rate as in the past two years, we nonetheless expect to
continue to grow with proportionately less requirement for
additional capital and higher returns on the new business we are
writing.”
