27th Sep 2013 13:15
LONDON (Alliance News) - Impact Holdings PLC Friday said profits declined for the first half, as its continues to get its expenses under control.
The company which provides short-term funding solutions, posted pretax profit of GBP250,071 for the period ending 30 June, down from GBP314,745 a year earlier, despite revenue rising to GBP1.3 million from GBP1.2 million in 2012.
Impact did not explain why profit fell but said it is exposed to the risk that clients owing money will not fulfill their obligations.
"The group regularly reviews credit exposure for every client, including the level of security available in the event of default," it said.
Nevertheless, credit default risk may arise from events or circumstances that are difficult to detect and handle, such as fraud.
Impact said it reduced exposure to external debt providers to GBP1.6 million, from GBP5.2 million and its gearing to 28% to 102%.
It had net assets of GBP5.6 million, compared with GBP5.1 million a year earlier.
"The group continues to see ongoing progress with expenses under control, a marked reduction in external finance and it continues to actively look for alternative income streams to enhance its profitability," Chief Executive Paul Davies.
No dividend will be declared for the year, said the company.
The stock was trading at 70.00 pence Friday afternoon, up 17.50 pence or 33.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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