Falling sales hurt profits at Jerrold
PRE-TAX profits at property lender Jerrold Holdings fell sharply in the 12 months to June last year due to falling revenue and higher costs.
Turnover at the Manchester-based group fell 9% to £135.6m while pre-tax profits dropped 36% to £44.1m, according to newly-filed accounts.
It said slower rates of debt repayment had affected turnover.
Jerrold, which was established in 1973 by Henry Moser and Barrie Pollock, specialises in secured lending for residential and commercial customers across the UK.
It operates under a string of different brand names including Blemain, Cheshire and Lancashire Mortgage Corporations and Bridging Finance.
Loan book values remain static at around £1.1bn and the group’s gearing ratio fell, reflecting the fact that it funds a greater proportion of its loan book through reserves and subordinated debt rather than external borrowings.
The group, which banks with the Royal Bank of Scotland, National Australia Bank and Lloyds, has a £378m syndicated loan facility in place until November 2012 and £327m of shareholders’ funds which include £60m of subordinated loan notes that mature in 2016.
There is also a £386m revolving facility which expired on November 11 but in their report, signed off last month, the directors said they are condident the finance will be renewed despite market uncertainty.
Barclays Private Equity took a significant minority stake in September 2006. The company, which is based in the city centre, employs 282 people. No one at the firm could be reached for comment.
