Davenham to de-list and close to new business
ASSET-based lender Davenham is to close to new business and start calling in loans.
The AIM-listed firm, which suffered huge losses as a result of lending to the commercial property sector, also plans to de-list.
In March Manchester-based Davenham warned investors that there was, “little or no value” in the company’s shares.
They are now worth just 0.5p, down from 120p when the financial crisis began in late 2008, giving the firm a market value of £143,000. It has borrowings of £148.8m.
In a statement it said: “Davenham will cease to write new business and, with the support of its banking syndicate, Davenham will collect in its loan books in a prudent and orderly manner. The detailed parameters of that run-off are being finalised with the banking syndicate, to ensure a stable platform.”
On April 1 Davenham reported interim operating losses before taxation and exceptional items of £7.7m, down from £28.7m. Revenue for the six months to December 31 2009 was £17.4m, against £27m last time. In December 2009 the value of its loan book stood at £144m.
