Profits shrink as Impact takes prudent approach

ECONOMIC uncertainty and a shortage of liquidity in the banking markets has restricted growth at lender Impact Holdings.

Impact, which specialises in lending to solicitors, said the environment had led it to focus on “better quality covenants” which had slowed down organic growth.

“The board intends to continue this prudent strategy until the economic environment returns to a more stable platform,” said the company.

It is also looking to diversify its product offering, reducing its reliance on speciality funding and re-aligning the business to provide various ancillary services to the legal and professional sectors.

During the six months to the end of September revenues halved to £425,104 and pre-tax profits tumbled from £141,024 to £3,726.

But the business said this was in line with management expectations as they continue to realign the business. Debt reduced by 20% year on year to £4.73m.

Chairman Roger Barlow said: “The group remains focused on providing services to the legal and professional sectors and maximising niche funding opportunities where the return profiles look highly attractive.

“In addition, the management team continues to analyse various opportunities that will only be executed upon if they meet our exacting standards for profits growth and shareholder returns.”