LONDON (Thomson Financial) - Asset-backed lender Davenham Group Plc. expects
year-to-end-June results to be in line with expectations and said it is well
placed to cope with more challenging market conditions and take advantage of
increased volumes and better quality new business.
However, it added it has seen a degree of credit slippage across risk
classifications in its property portfolio, and said it anticipates an increase
in the level of impairment in its property portfolio within manageable levels.
In a trading update, Davenham also said it continues to see strong demand
for its asset and trade finance products, presenting both improved pricing and
credit risk "in line with our appetite".
Due to a more cautious approach to the property market, the group does not
expect significant growth across the overall portfolio during the remainder of
2008 and 2009 but does expect an improvement in both the pricing and risk of new
business.
At the year-end, 211 million pounds had been drawn down from the company's
300-million borrowing facilities and its loan portfolio stood at 284 million
compared with 271 million last year.
TFN.newsdesk@thomson.com
ran/slj
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