Losses take toll at Loan Line

Accuma Group, the parent company of Loan Line has revealed the secured loan broker lost £196,000 in the first half of 2008.

Charles Taylor, chairman of Accuma, says: “Our loan broking division, Loan Line, has experienced very difficult trading conditions throughout the period under review, posting a loss of £196,000.

“Lenders have withdrawn from the market, cut commissions and toughened their acceptance criteria. In particular First Plus, a major lender representing some 30% of Loan Line’s business, announced its intention in July 2008 to withdraw from the market.

“Consequently the board are currently examining various strategic options for Loan Line given the continued losses and ongoing requirements for working capital.

“A further announcement will be made in due course.”

The Accuma group reported overall earnings for the first half of the year of £185,418 before tax, in the same period, turnover reduced by 7.6% to £6.1m, which has been blamed on Loan Line.

Gross profit more than doubled in the first half of the year to £2.4m.

Byrom & Keeley, its debt management business, posted a profit of £570,000 despite average new client payments decreasing from £261 in January 2008 to £217 in June 2008, which it puts down to general economic conditions affecting household disposable incomes.

While its insolvency division posted a profit of £449,000 with 5,406 cases under management.