10 August 2011 – trading statement

The home credit and motor finance group has revealed that trading in the six months to 31 July has been in line with expectations.  In the home credit business, revenues are up by 3% on the previous year and a new branch has been opened in Derby.  The Advantage motor finance business has increased the number of new advances by 6% and the average loan is up to £5,000 from £4,500.  Strong cash flow has seen gearing reduce to 40% against 51% last year.  The group has also put in place banking facilities to cover core borrowing and these mature in April 2016.  This gives the group considerable headroom for further expansion and the shares remain a BUY.