A healthy increase in turnover at St Helen’s Finance, combined
with high growth expectations in the year ahead, could mean the SME
lessor is on the path to recovery.
However, the City of London-based lessor still has a long way to
go, with its latest financial statement for year-end 2007 revealing
an increase in total losses, mainly from bad debt, of £312,391, up
from £168,000 in 2006.
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Nonetheless, managing director, Norman Kenvyn is optimistic
about future prospects saying “the current economic uncertainties
will undoubtedly present the company with greater new business
opportunities as traditional lenders to SMEs start to tighten
available facilities”.
The company’s number of live deals rose 134 per cent to reach
309, turnover grew 128 per cent to £759,896, while its finance
receivables more than doubled last year to £6.7m by year-end
2007.
Debt facilities rose sharply to £5.6m, up from £2.2m the year
before, while available cash resources remained steady year-on-year
at more than £413,000. Admin expenses rose from £350,000 to
£516,000 last year.
As a business largely reliant on using lease brokers for
generating new business, St Helen’s embarked on securing an
increase in available funding facilities from £500,000 in September
2004 to £5.6m by year-end 2007. In order to match that debt
finance, the company has also raised significant funds since its
flotation from investors.
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By GlobalDataSt Helen’s looks well positioned for 2008. Its cautious approach
to arrears is reflected in the profit and loss account, which
showed £126,380 of ‘bad debts written off, the company’s annual
report said. It also maintains, the report added, a conservative
approach with bad debt provision 3 per cent of the net cost of new
transactions, and also ensures it has no exceptional exposure or
asset category with a concentration of risk. Furthermore, with
fixed overheads now covered, a ramp up of sales should lead to a
dramatic growth in profitability over the next three years, St
Helen’s claimed.
