Coates leaves Davenham

DAVID Coates has stepped down as chief executive of Davenham Group, the small business asset-based lender.

Group finance director Paul Burke has now been appointed group managing director and will take over Mr Coates’ responsibilities with immediate effect.

The Manchester-based company said in a statement: “David has played a key role in the development of Davenham, joining the group before its flotation in 2005 and leading it through a period of growth and subsequently through a challenging period with the onset of turbulence in financial markets and economic recession.”

The struggling firm is undergoing a strategic review and in January it said it was looking for buyers or to raise extra finance for parts of the group.

The group, which provides loans of up to £5m to small and medium-sized companies, has had a turbulent year. Its shares have lost more than 90% of their value in the past 18 months and it has been forced to cut staff after racking up losses of £55m.