Pre-Close Statement
Notice of results
24 January 2008
General Capital Group plc (AiM: GENC), the independent asset, property and venture finance lending principal, is pleased to provide the following trading update as it enters its close period.
Recent tightening of credit conditions and the consequent reduction in liquidity available to the small and mid corporate market has provided advantageous trading conditions for General Capital. The Group has experienced increased proposal flow across all three trading divisions enabling it to be increasingly selective and to tighten terms, and to improve security on strongly increased levels of new business transacted.
Asset Finance Division
Following the acquisition of the asset finance brokerage Norton Folgate in March 2007, the Company’s stated strategy to accelerate the growth of its asset finance division has been successfully achieved with new business for 2007 more than doubling on a year on year basis.
Property Finance Division
The property finance division has continued its cautious growth whilst tightening its loan to value criteria. With low direct overheads, and no significant bad debts, this division has been a solid contributor to group profits.
Venture Finance Division
During 2007 the venture finance business enjoyed a number of successful exits and looks forward to further exits in 2008. Strongly increased deal flow also augurs well for the future.
Group Performance
Underlying earnings for the year ended 31 December, 2007 are expected to be in line with market expectations. The Group predicts market conditions will continue to favour strong trading during 2008.
Funding
As previously announced, the Company has committed debt funding of £40 million until March 2010, from NM Rothschilds and Halifax Bank of Scotland. The Company is in discussions regarding additional funding in order to take advantage of the numerous profitable business opportunities that continue to present themselves in the current market. It is anticipated that shareholders will be updated on progress in this regard not later than the announcement of the 2007 preliminary results.
General Capital’s Managing Director Mark Edworthy said:“I am very pleased with our collective achievements in 2007 and look forward to be able to continue strong risk balanced growth in 2008. Prevailing market conditions present us with significant opportunities since our business model is designed to take maximum advantage of the uncertainties currently being experienced in debt and equity markets.”
Notice of Results
General Capital expects to announce its Preliminary Results for the twelve months ended 31 December 2007 on Wednesday 26 March 2008.
For Further Information:
| General Capital Group Plc |
|
| Mark Edworthy, Managing Director | Tel: +44 (0) 1603 610 610 |
| mark.edworthy@generalcapital.co.uk | www.generalcapital.co.uk |
| Collins Stewart Europe Ltd | |
| Mark Connelly / Adam Cowen | Tel: +44 (0) 20 7523 8350 |
| mconnelly@collins-stewart.com acowen@collins-stewart.com |
www.collins-stewart.com |
Media Enquiries:
| Abchurch Communications | |
| Heather Salmond / Franziska Boehnke / Amy West | Tel: +44 (0) 20 7398 7700 |
| franziska.boehnke@abchurch-group.com amy.west@abchurch-group.com |
www.abchurch-group.com |