Bridging loans provider Excel to appoint administrators

A NORTH West bridging loans providers is set to appoint administrators.

Excel Securities, based at Mosley Street in Manchester, filed a notice of an intention to appoint administrators at the High Court in the city last week.

Excel offered secured bridging loans of between £100,000 and £1m for property investors, with funds being available within 48 hours.

Most recently-filed accounts for the group show it was starting to suffer from the slump in the property values.

In the year to the end of March 31 2008 Excel made a £5.5m bad debt provision and posted an operating loss of £4.8m against a profit of £1m the previous year.
Turnover in the period fell to £5m from £9.3m.

At year end 2009 banks were owed more than £23m, of which £10m was due to NatWest. The other lenders are the Israeli Discount Bank and Bank Leumi (UK) plc.

Excel, which has around 10 staff, is expected to appoint Manchester insolvency specialist Begbies Traynor.

Having filed the notice of intention, the directors have 10 days to appoint an insolvency practitioner.