Bristol-based factoring group Ultimate Finance today reported strong growth in difficult markets for the half-year to December 31 with turnover up 25% to £5.3m on the first half of 2010.
Ultimate underwent a boardroom shake-up towards the end of last year following the surprise departure of Richard Pepler, the company's chief executive and co-founder. He was replaced by Jeremy Coombes, his former partner and company co-founder.
Subsequently it was announced that Clive Garston would retire as non-executive chairman when today's interim results were announced. He has been replaced by Roger McDowell, one of two new non-executive directors who joined the board in November.
In January the group, which specialises in solutions for SMEs, raised about £1m before expenses following a successful placing to strengthen its balance sheet and reduce its gearing ratio. And today, Clive Garston declared himself delighted that Ultimate had again delivered another set of strong financial results "demonstrating good organic growth and the successful embedding of the acquisition of Ashley Commercial Finance".
He added: "There are many high quality small businesses who need a flexible approach to financing and as the UK economy emerges from recession there is an increasing demand for our expertise, products and services."
Pre-tax profits remained broadly flat at £329,000 (£337,000) due to amortisation associated with the acquisition of Ashley Commercial Finance and group reorganisation costs. But there was a 44% rise in adjusted operating profit to £802,000, excluding acquisition, amortisation and group reorganisation costs. The unadjusted operating profit increased 28% to £502,000. The interim dividend has been raised from 0.35p to 0.40p per share.
Average client size, measured by turnover per annum, has increased by 5% and continues to grow – and Mr Garston said there had been a healthy level of enquiries, bolstered by acquisition of Ashley Commercial Finance which is performing ahead of plan.
There was strong growth across the asset finance division and investment had been made into the business to support further growth including more spending on the head office operational team. The sales team has been strengthened and regional coverage expanded while bad debt levels remain at traditional lows of around 1%.
The shares were up 1.61% or 0.25p at 15.75p just before noon.
