News blog
Ultimate Finance Group
- BY: Andrew Hore |
- POSTED: 17/09/2009 |
Ultimate Finance Group has reaped the benefits of being choosy about which businesses it lends to and this has helped it grow steadily over the past year.
A maiden dividend of 0.25p a share helped the share price rise 5.875p to 14.25p, which values the invoice discounting and factoring company at £2.85m.
Underlying profits improved by one-third to £406,000 in the 12 months to June 2009. This adjusts for the £167,000 of restructuring charges in 2007-08.
Lower interest costs helped boost the second half profits.
Ultimate had already announced that its facility from Lloyds TSB has increased from £18m to £25m. The facility lasts until 3 July 2012. However, the interest rate was increased. Ultimate was using £16m of the facility at the end of June 2009.
New enquiries increased by 77% last year but only a limited number of these were taken on as clients. Ultimate is also lending less as a percentage of its customers’ turnover. The amount of client turnover financed still increased by one-quarter to £213m. The northern and south eastern offices are moving into larger premises and the sales force is expanding.
Ultimate is in a good position to make add-on acquisitions if it can find the right quality of business that has been careful about whom it lends to.
Arbuthnot was appointed as nominated adviser and joint broker, with WH Ireland, in July 2009.
Ultimate is on course for profits of £500,000 this year.
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