Money still tight at Sterling Green

A COST cutting programme at debt manager Sterling Green has helped it move into profit.

But the group’s working capital position “remains challenging”. In a statement issued today it said it would have to resort to further cost cutting and raise additional capital if it strayed beyond its financial forecasts.

The business stripped out operational costs – including the removal of some senior managers – last year which helped it to an operating profit of £31,000 in the second half.

The Manchester company, which offers debt advice and consolidation loans, has reduced its losses but the business still recorded a pre-tax loss of £365,000 for the full year to March.

This is down from £1.6m last time when the accounting period covered 15 months. Revenue rose 50% to £1.9m.

In a statement chairman Michael Edelson said revenues were also improving, helped by the economic climate which has left more people struggling with their debts.

The group currently has more than 3,000 “live clients”. Mr Edelson said this was a solid foundation on which to build a “profitable future”. He is also interested in growing the business by acquisition and thinks opportunities will arise as a result of further regulation in theh debt management industry.