30th Sep 2014 15:34
LONDON (Alliance News) - Impact Holdings (UK) PLC Tuesday reported higher pretax profit and revenue for its last financial year.
The group, which provides short-term funding solutions, reported a pretax profit of GBP97,088 for the year ended March 31, compared with a GBP45,340 profit the prior year, as revenue in the year increased to GBP1.7 million, up from GBP1.0 million a year earlier.
The company said its gross profit was hit by a huge increase in the costs of sales, to GBP1.3 million from GBP413,906, but said its pretax profit benefited from GBP3.1 million in exceptional interest receivable in the year, compared with a similar gain of only GBP83,000 the prior year.
Impact Holdings said it reduced its exposure to external debt providers during the year. At the end of last year, Impact Holdings had 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 had identified growth opportunities for new business lines.
"Trading results remain suppressed whilst the group's lending subsidiary companies continue to pursue complex litigation against errant borrowers and professional advisors. Following on from recent successful recoveries and cases concluded in our favour the directors anticipate that the litigation process is likely to be successfully concluded within the next two years," said Chief Executive Paul Davies in the company's statement Tuesday.
Shares in Impact Holdings were untraded Tuesday at 55.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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