Debt manager doubles losses
DEBT management group Paymex increased sales last year by 4.6% to £31.4m (2008: £30m) but doubled pre-tax losses to £2m, according to recently-filed accounts.
The Manchester-based company, which operates the Baines & Ernst debt management business and a company which organises individual voluntary arrangements known as Blair Endersby, is owned by chairman Tony O’Neill.
Its earnings before interest, tax, depreciation and amortisation for the year virtually halved to £2.5m (£4.9m), but it said that the money generated still covered interest payments of £1.9m on long term loans of £27m secured against the future receipts of its IVA and debt management books. These are currently valued at £48.9m.
A directors’ report accompanying the accounts states that there “continues to be s very strong demand for the products provided by the group” and that as a market leader Paymex was well served to meet it. It also said that the UK’s high levels of personal debt would “become an increasing burden” in the current economic climate.
By the year end, the company’s net assets had dropped to £7.7m, from £9.3m a year earlier.
