Finance firm Impact Holdings declared a 4% increase in pre-tax profits to £314,475 in the year to March 31 even though revenues fell by 20% to £1.2m (2011: £1.5m) according to BusinessDesk.com.
The company, which provides loans to solicitors and other professionals, has continued its long-term goal of working down its loan book, which now stands at £5.2m, from £7.5m in the prior year. It also successfully negotiated an extension of its bank facilities.
However, company chairman Roger Barlow said that banks were still failing to stimulate growth as they shied away from lending to SMEs, causing a lack of liquidity.
“Financial institutions globally continue to increase their margins, review their lending criteria and implement more rigorous credit processes, which has reduced the availability of credit.
“The Impact group has not been immune to lenders restricting credit lines and increasing margins with the consequent effect on the management’s ability to grow the business.”
Chief executive Paul Davies said the firm had “spent considerable effort reshaping the business” in the wake of the banking crisis.
“We will be cautiously and energetically repositioning the business over a period of time, away from being purely a lender and thereby exposing ourselves to balance sheet risk to one of a lower risk, higher return service provider.”