Ashley deal boosts Ultimate’s profits

THE acquisition of Cheshire-based competitor Ashley Commercial Finance has helped to push up sales and profits at AIM-listed Ultimate Finance.

The Bristol-headquartered company, which has a major office in Manchester, announced a 76% rise in pre-tax profits to £337,000 in the six months to December 31 (2009: £191,000).

The company said that Ashley Commercial Finance’s share of that profit was “above management expectations”, contributing £228,000 during the two months under its ownership following a £4.75m deal announced on October 12, 2010.

It also said that the business had been integrated quickly, with Ashley staff moving from its former Cheadle headquarters into Ultimate’s Manchester office.

Sales also rose at the company by 51% during the period to £4.3m (£2.9m), with the company attributing some of this towards a stronger regional presence following new office openings in Birmingham and Cardiff.

Chairman Clive Garston, who is also a corporate partner at law firm Davies Arnold Cooper, said: “This has been a period of significant development for the group, with the acquisition of Ashley Commercial Finance proving transformational for Ultimate in terms of scale and product offering. 

“The board is extremely pleased with the progress that this business has made and the contribution that it is already providing. 

He added that although the economic picture remained “challenging”, this presented opportunities for the firm since bank lending to SMEs remained tight.

By the end of the period, Ultimate Finance said that £6.2m of its £34m facility with Lloyds TSB remained undrawn.

“The group is well positioned with its regional presence, operational strength and £34 million funding facility.”