26 September 2012 – interim results

In the six months to 31 July, the group increased its revenue by 8% to £26.8m (2011: £24.8m) with pre-tax profit rising by 14% to £7.3m (2011: £6.4m).  Earnings per share rose to 47.1p (2011: 39.9p) and the first interim dividend was raised to 12p (2011: 11p).  Gearing at the period end had fallen to 33% (2011: 38%).

Both divisions have done well with Home Credit seeing revenues increase by 5% and pre-tax profits nudging up to £3.6m (2011: £3.5m).  In Motor Finance, revenues rose by 14% but pre-tax profits were 29% higher at £3.8m (2011: £2.9m). 

These were clearly impressive results and we have nudged up our year-end profit forecast to £13.5m for earnings per share of 86p.  We retain our recommendation of BUY.