20 October 2016 – trading update
The specialist finance house has issued a positive trading update with results for the 18 month period to 30 September likely to be slightly ahead of expectations. New business written in the last six months amounted to £37.2m, an increase of 20% over the previous six month period, so that at the end of September the group had a loan book of £122m. The level of loan impairments also continues to fall demonstrating the quality of the loan book. The application for a banking licence continues to progress and, assuming this is successful, it will be transformational for the group. The shares have recovered from recent lows of around 25p but we believe these is further upside. Continue to BUY.