Fresh DBS provision

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The Independent Online
DBS Management, the Huddersfield firm that runs a nationwide network of more than 1,100 independent financial advisers, has put aside a further pounds 1.1m to compensate investors who suffered when they arranged home income plans, writes Paul Durman.

Six months ago, Ken Davy, DBS's chairman, believed that the pounds 2.5m provision already made would be 'more than adequate'.

Home income plans involved homeowners, usually elderly, remortgaging their property to release money for investment. High interest rates and falling property prices during the recession left many people in financial difficulties.

DBS said it was confident no further provisions would be necessary. The provision cut pre-tax profits to pounds 356,000 in the six months to last September, down from pounds 1m in 1992. Income rose from pounds 18m to pounds 24.9m.