Davenham, the asset-based lender to the UK SME sector, was in confident form yesterday as it issued a trading update ahead of announcing its preliminary results on September 5.
The board said it anticipated results for the financial year ended June 30 would be in line with expectations.
David Coates, chief executive of the AIM listed group, said: "Davenham has made good progress against its strategic and operational objectives during the course of the year. The group has continued to strengthen its regional sales teams and has in particular opened its South-east regional office in London. The board believes the group is well positioned to take advantage of trading conditions in the next twelve months."
In February Davenham said it was "seeing increasing sales in the Midlands" where it has an office in Birmingham.
The assessment came as turnover for the six months to December 31 increased by 17 per cent to £15.9 million. Profit before tax was £2.7 million after including £1.8 million of exceptional costs relating to its listing. The underlying performance of the group saw profit before tax and exceptional items increase eight per cent to £4.5 million.
The loan portfolio jumped 16 per cent to £166 million.
The business was founded in 1991 in Manchester from where its core operations are run. In addition to Birmingham, it now has offices in Leeds, Liverpool, London and Newcastle.
Davenham specialises in the SME sector - typically involving loans of between £10,000 and £4 million.
Its activities are organised into three divisions: property finance, asset finance and trade finance.
