Provisions burden eases for NHL
Tuesday 23 May 1995
The improvement was achieved by a considerable reduction in provisions made for bad debts. The future continues to look good for the company, according to analysts, as profit gains resulting from reductions in bad debts are likely to diminish as the company completes the process of shaking out the lowest-quality mortgages.
Trading conditions in the depressed housing market looked set to worsen as interest rates rise, Jonathan Perry, chairman, warned. Despite this concern, Chris Smith, analyst at the company's broker, James Capel, stuck to his full-year profit forecast of pounds 15m following the completion of a financial restructuring at NHL and the launch of a pounds 50m rights issue earlier this year.
"It is a low-cost producer of mortgages," he said. "The quiet market conditions help it because its mature loan book will reduce less slowly than others."
Shares in NHL plummeted from a high of pounds 23.29 in 1987, when it was one of the country's largest mortgage brokers, to a low of 12.5p in 1992 after the BCCI crisis and the collapse of the housing market sent the independent mortgage market into a downward spiral.
Since the appointment of Mr Perry in 1992 the company has struggled to restructure itself and, despite offering relatively expensive mortgages, has begun rebuilding its loan book.
Net interest income for the half year fell by 22 per cent as mortgages were redeemed, but Mr Perry hopes the outflow of funds will be reversed in the next two years.
Operating expenses increased by nearly pounds 1m, due to one-off costs associated with the restructuring, NHL said.The shares closed up 9p at 115p./
The shares closed up 9p at 115p.
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 Canadian woman suing police who locked her in van with sex offender who then raped her
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
Canadian woman suing police who locked her in van with sex offender who then raped her
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Stephen Fry explains what he would say if he was 'confronted by God'
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...