Poor liquidity hampers Impact

SPECIALIST lender Impact Holdings has blamed a continued lack of liquidity in the banking market for a fall in its revenues.

Impact, which is based in Manchester, offers short term loans to property and legal markets.

During the six months to September 30 the company saw pre-tax profits fall 28% on turnover of £893,606, down 24%. But chairman Roger Barlow said the performance was in line with management expectations.

He added: “The lack of liquidity in the banking markets, our concerns for the overall economic environment in which we trade and our desired strategy of
concentrating on better quality covenants have resulted in a slowing down of
our growth in the first six months.”

Impact’s main business is based around funding payouts in personal injury cases. Two years ago it opened a new division to fund property deals.

Mr Barlow said a lack of liquidity in the mortgage market has prompted a strategic decision to restrict, “new exposures to lower loan to values where a refinance is not perceived to be problematic”.

Impact added that it had completed the £800,000 acquisition of Edinburgh-based Sutherland Professional Funding which would create cross-selling opportunities and provide further funding lines.

The all share deal gives the vendors a 47% stake in Impact which was advised by Manchester law firm Pannone.