Positive half-year for motor finance provider

The overall pre-tax profits at Private
& Commercial Finance Group for the six months to September 30
2008 rose by 15 per cent to £0.5m, on turnover of £31.9m, up 36 per
cent. P&CF provides business finance and consumer finance, with
its consumer division focusing on broker-introduced motor
finance.

Progressive margin increases, cost-cutting and a decline in
competition had helped business during the period, said P&CF,
although rising arrears were a worry. “We continue to operate
within an industry-wide scarcity of funding and, although it is
often frustrating that we are having to turn away excellent
opportunities, the business which we are writing is in line with
our plans and of high quality, with attractive margins,” said the
group’s chairman, Michael Cumming.

The Consumer Finance division agreed an extension to its
existing facility with Barclays Bank, while the group as a whole
obtained £7.5m of new facilities during the reporting period,
meaning it has “adequate facilities for our current growth plans”,
said Cumming.

While the outlook remains “challenging”, he added, “[the] improved competitive environment, coupled with the more prudent
lending terms now being offered by our remaining competitors, mean
that our opportunities for new business on favourable terms are
highly promising.”