3rd Aug 2016 07:57
LONDON (Alliance News) - Acquisitive lender Non-Standard Finance PLC on Wednesday said it made a wider pretax loss in the first half of 2015 due to impairment charges it booked.
The company said it made a pretax loss of GBP4.7 million in the six months to the end of June, compared to a GBP910,000 for the comparable period a year earlier. The company was incorporated in July 2014 but did not acquire the Loansathome4u home credit business from fellow London-listed S&U PLC until July 2015.
As a result, Non-Standard Finance made revenue of GBP29.1 million in the first half of 2016, compared to zero revenue for the first half of 2015.
Since the Loansathome4u deal, Non-Standard Finance also agreed to acquire consumer lending business Everyday Loans from Secure Trust Bank PLC, another London-listed lender, in April this year.
Non-Standard Finance said its loan book stood at GBP146.8 million at the end of June, with strong growth seen across its portfolio. This has continued into the second half, the firm said, leaving it on track to deliver on its target of 20% loan book growth per year and a 20% return on assets in 2017.
Non-Standard Finance also declared its maiden interim dividend of 0.3 pence per share.
"The group has achieved a solid first half performance, reflecting the positive response to the changes implemented in each of our three business divisions," said Non-Standard Finance Chairman John van Kuffeler.
"The vast majority of our customers benefit from our face-to-face model that delivers positive customer outcomes and has a history of robust performance during periods of economic uncertainty. In addition, Britain's decision to leave the EU may increase demand for our products if mainstream lenders seek to tighten credit further," he added.
Shares in Non-Standard Finance were up 5.0% to 64.04p on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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