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 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Greece debt crisis explained: A history of just how the country landed itself in such a mess
- 3 People all over the world are getting semicolon tattoos to draw attention to mental health
- 4 Greek debt crisis: Yanis Varoufakis's funniest (and most memorable) quotes
- 5 The biggest first date turnoff has been revealed
Greece debt crisis explained: A history of just how the country landed itself in such a mess
Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
Man dies instantly after shooting firework from top of his head
Isis schoolgirl Amira Abase who fled London to join terrorists in Syria mocks victims of Tunisia massacre
Father faces deportation to Thailand after 27 years in Britain for two 'stupid crimes'
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...