Network Data Group reports pre-tax loss of £1.1m

Network Data Holdings annual results for the year ending December 2007 show that the group incurred a pre-tax loss of £1.1m against a profit of £0.3m for 2006.

Group sales rose by approximately 11% year on year to £32.4m and the group made gross profits of £8.2m which is an increase of 6% over last year.

However, as a result of it having to carry its HIPs business HIPSTAR, for longer than expected, the group incurred a pre-tax loss.

Loss per share was 2.9p against earnings per share of 0.5p in 2006.

Nevertheless the group will be maintaining its dividend of 0.35p per share payable on 9 May 2008 to shareholders on the register on 2 May 2008.

Richard Griffiths, chief executive of Network Data Holdings, says: “The group has faced a number of challenges during the course of the year, most notably the delay and phased implementation of the Home Information Pack program and the difficulties in the mortgage and property industries. This has obviously impacted the group’s profitability for the year ended 31 December 2007. However the core business, Network Data Limited, has achieved good growth in its business volumes and increased profit before tax by a healthy 26%.

He adds: “2008 will obviously continue to be difficult for businesses operating in the mortgage and property industries, however we believe the group is well positioned to ride out those troubles. Network Data Limited continues to operate as one of the largest mortgage broking networks in the UK and we anticipate our HIPs business to gather momentum during the course of the year. We are well placed to take advantage of any opportunities which may arise over the forthcoming months.”