30th Dec 2013 10:08
LONDON (Alliance News) - Impact Holdings (UK) PLC Monday reported a sharp drop in profits for the first half of the year, despite doubling its revenue, as the group said it continues to realign its business.
The group, which provides short-term funding solutions, said that due to the ongoing credit crisis, it has been realigning its business to reduce its exposure to third-party funders and to withdraw from new exposures in the specialty funding market. It said that it has identified growth opportunities for new business lines.
Impact Holdings reported a pretax profit of GBP1,904 for the six months to September 30, down significantly from the GBP3,726 reported for the same period a year earlier, due to a large increase in the cost of sales, higher operating expenses and a lower operating profit.
Cost of sales rose during the period to GBP520,983 from only GBP112.793 a year earlier. Operating expenses also increased to GBP434,781, compared with GBP308,585 last year, while operating profit dropped to GBP1,888 from GBP3,726 the period year.
"We continue to incur upfront legal expenses in seeking to recover loans which have been previously provided against by the group," Chairman Roger Barlow said in a statement. "Litigated matters continue to be concluded successfully."
Impact Holdings said that revenues rose to GBP957,652 from GBP425,104 for the same period a year earlier.
The group reported net assets of GBP5.65 million, up from GBP5.40 million a year earlier.
Earnings per share for the first-half fell to 0.1 pence, down from 0.2 pence the prior year.
Impact Holdings said that it has reduced its debt by 66% year-on-year to GBP1.6 million, compared with GBP4.8 million at the end of September last year.
Shares in the group were down 1.0% at 52.00 pence per share Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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