Impact pulls back from bridging loans

SPECIALIST lender Impact Holdings managed to keep pre-tax profits steady at £301,209 in the year to March 31 (2010: £324,464), which chief executive Paul Davies hailed as an achievement “in what has probably been the most challenging and uncertain economic environment in recent times”.

The Manchester-based business also saw its revenues drop by 6% to £1.6m as it movedf away from its (previously core) bridging finance operations to concentrate on more specialist forms of funding, such as solicitors’ disbursements.
The firm’s non-executive chairman, Roger Barlow, said there had been an “unprecedented” impact on the bridging loans market since the onset of the credit crunch in 2007.

“The refinancing options for bridging loan transactions diminished and we have taken the strategic decision not to write new business in the short term until some normality returns to the economic markets.”

It will continue to fund solicitors’ dusbursements and other “short term niche funding solutions”, as well as providing outsourcing servies to other financial services companies. The company also said it would look continue to look at potential acquistions following its recent integration of the Sutherland Professional Funding business.

By its year, end, net assets had grown by £300,000 to £4.8m and it finished the year with net cash of £1.9m (£2.2m).

Chief executive Paul Davies said: “The enhanced board and management team have spent considerable effort in improving the risk management, operational and financial controls within the business.

“This performance is a credit to the management and staff, who have collectively worked with commitment and resilience to deliver this performance.”