St Helens Finance plc
LSE : SHF

March 06, 2008 03:34 ET

St Helen's Finance Plc ('St Helen's Finance', 'SHF' or 'the Company'): Audited Annual Results for the Twelve Months to 31 December 2007

LONDON, UNITED KINGDOM--(Marketwire - March 6, 2008) - The Board of St Helen's Finance, the independent provider of finance facilities across a range of assets has today announced audited results for the twelve months to 31 December 2007.

HIGHLIGHTS

- Turnover up 128% to GBP776,000

- Shareholder Funds(i) up 191% to GBP1,954,000

- Debt Facility up 151% to GBP5,650,000

- Number of live deals up 134%

- Broker coverage initiated

(i) Shareholders funds include GBP1,000,000 of convertible loan notes, further details of which are included in the
Financial Review below.

Commenting, Norman Kenvyn, MD, said:

'I am delighted to report that your Company has achieved record growth during this year which has outstripped the collective growth of previous years. It has achieved increases of over 100% in new business written, portfolio growth, turnover, number of live deals and also in external debt facilities and shareholders' funds to support our current and further controlled growth.'

The Directors of the Issuer accept responsibility for this announcement.

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007

As Chairman of St Helen's Finance I am delighted to report that further excellent progress has been made in the continued building of your Company into a leading asset financier specialising in the SME sector. Given the broader economic challenges that have been presented to many small businesses during the year, it is pleasing to record the solid improvements in performance delivered by the management team and staff within the Company.

Your Board of Directors continues to focus on the vital areas for success in our industry such as prudent risk management coupled with new business and structuring flair to take considered advantage of new opportunities to secure further growth for the Company.

Whilst it is our intention to continue the Company's growth strategy we shall only do so where we are confident of achieving acceptable returns. The Board believes that the best prospect to achieve further material growth is through acquisition and the Company is poised to pursue opportunities as and when they match strict risk/return criteria set by the Board.

I would like to take the opportunity to thank our customers and funders for their continued support and for the excellent work achieved by our colleagues during this year.

Rick Abbott, Chairman

4 March 2008

MANAGING DIRECTOR'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007

I am delighted to report that your Company has achieved record growth during this year which has outstripped the collective growth of previous years. It has achieved increases of over 100% in new business written, portfolio growth, turnover, number of live deals and also in external debt facilities and shareholders' funds to support our current and further controlled growth.

Whilst it is disappointing to report a small trading loss of GBP 18,177 and a total loss of GBP 312,391 after taking write-offs and making available both general and specific bad debt provisions, I can unequivocally state that the Company has never been in such a strong and commanding position to face the forthcoming year - and it does so with energy, eager anticipation and confidence.

When the Company was first established, in my view it was always going to take 3 years to develop its firm foundations. Whilst there remains (and I expect this always to be the case) a lot of work to be done to achieve the potential that SHF has, we now have a solid platform on which to build a strong and profitable Company.

FINANCIAL REVIEW

The critical areas of the business all show increases of over 100% when compared to the previous 12 months



Dec 2004 Dec 2005 Dec 2006 Dec 2007
(all figures are in GBP and are rounded to the nearest
1,000 except for the number of live deals)
Turnover / Income 28,000 190,000 340,000 776,000
including interest income
+128%

Equipment Financed 395,000 1,472,000 2,033,000 4,601,000
equipment purchased for
our customers
+126%

Portfolio of Receivables 258,000 1,264,000 3,105,000 6,748,000
gross payments now due
to the company
+117%

Number of Live Deals 15 69 132 309
for 2007 the average
balance is GBP 21.8k
+134%

Shareholders Funds 542,000 329,000 670,000 1,954,000
Includes GBP 1m of
convertible loan notes
+191%

Debt Facilities Available 500,000 1,100,000 2,250,000 5,650,000
total bank lines that the
company may use
+151%

Trading Profit / (Loss) (63,000) (104,000) (105,000) (18,000)
loss before bad debt
provisions

(Loss) on Ordinary
Activities (74,000) (211,000) (168,000) (312,000)
loss after bad debt
write-off and other
provisions


- Shareholders funds include GBP1,000,000 of convertible loan notes. The convertible loan notes may be converted at the conversion price at any time at the option of the Loan Note Holders or at the Company's option if the mid-point of the Company's share price as listed on PLUS exceeds the conversion price by a minimum of two pence for a continuous period of not less than 28 days. At present the Company's share price does not exceed the conversion price and therefore the loan notes are not convertible.

BAD DEBT REVIEW

The Board is concerned about the impact of current, local and global economic issues and has taken a prudent view of the bad debts within the Company by writing off GBP 126,380. The adopted stance is that the deterioration of the current economic environment could result in possible slower payments by existing lessees. Therefore, in addition to maintaining the General Provision at around 3% of the net book value of the portfolio, the Company is making Specific Provision for all transactions that are more than 30 days in arrears at the year end. These additional provisions total GBP 167,834.

The creation of the Specific and General Provisions is in line with the Boards prudent governance of the Company and the net result is that after making such a provision the Company is reporting a loss for the financial year of GBP 312,391. The Board would hope that such a provision proves to be unnecessary but this is by no means certain and is clearly subject to the underlying economic climate and customer performance.

OPERATIONAL REVIEW

The Board has continued to develop your Company at a very high pace over the last 12 months. The progress made is reflected in the improvement of the financial position to the extent that the Company has cash resources available at year end of GBP 413,048 and additional committed facilities of circa GBP 2 million. There has been no material change in that position since the year end.

OUTLOOK

A well worn quote but one that I feel is more than appropriate - 'the foundations have been laid and the building of a really profitable Company has started'.

I am proud of the achievements over the last 12 months especially the injection of new funds into the Company at a premium to share price. This is a rare phenomenon in these challenging times and clearly demonstrates the strong support and understanding we enjoy with our shareholders in recognising the true value and potential of the Company; and whilst the prudent approach of bad debt provisioning has resulted in a larger loss than we would have liked, it does ensure that the Company has the most appropriate stance from which to attack 2008 with confidence and from a position of strength.

The current economic uncertainties will undoubtedly present the Company with greater new business opportunities as traditional lenders to SMEs start to tighten available facilities. With our experience, care and expertise combined with a strong balance sheet and an ability to react quickly, the Board believes the Company is extremely well positioned to take advantage of such market opportunities. With the strong support of shareholders and an experienced and enthusiastic team I believe the Company is positioned to produce another strong set of results by the end of 2008 and to pursue non organic investment initiatives if they are available and meet our strict criteria.

Norman Kenvyn, Managing Director

4 March 2008



ST HELEN'S FINANCE PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2007

2007 2006
GBP GBP

Turnover 759,896 329,874

Other interest receivable and similar Income 16,281 10,562
776,177 340,436

Operating expenses

Interest payable and similar charges (254,804) (95,221)
Funding facility fees (26,845) (3,750)
Disposal of leased assets 4,031 3,773

Gross Profit 498,559 245,238

Administrative expenses - general (516,736) (350,824)
Administrative expenses - bad debts written off (126,380) (13,048)
Administrative expenses - specific & general (167,834) (49,679)
provisions for bad and doubtful debts

Loss on ordinary activities before taxation (312,391) (168,313)

Tax on loss on ordinary activities - -

Loss on ordinary activities after taxation (312,391) (168,313)

Loss per share (pence) (2.0) (1.3)


The profit and loss account has been prepared on the basis that all operations are continuing operations. There are no recognised gains and losses other than those passing through the profit and loss account.



ST HELEN'S FINANCE PLC
BALANCE SHEET
AS AT 31 DECEMBER 2007

2007 2006
GBP GBP
Fixed assets
Tangible assets 37,270 7,432
Investments 50 -

Current assets
Debtors: amounts falling due within one year 2,065,290 926,661
Debtors: amounts falling due after more than
one year
3,330,016 1,625,514
Cash at bank and in hand 413,048 346,480
5,808,354 2,898,655

Creditors
Amounts falling due within one year (1,835,715) (1,002,737)

Net current assets 3,972,639 1,895,918

Total assets less current liabilities 4,009,959 1,903,350

Creditors: amounts falling due after (3,055,553) (1,232,750)
More than one year

954,406 670,600

Capital and reserves
Called up share capital 657,845 505,358
Share premium account 1,064,604 620,894
Profit and loss account (768,043) (455,652)

Shareholders' funds - equity interests 954,406 670,600


The information above has been extracted from the Company's Audited Accounts for the year-ended 31 December 2007 which contains an unqualified Audit Report.

The financial statements were approved by the Board on 4 March 2008.



N J Kenvyn A Irving
Managing Director Director


Contact Information

  • St. Helen's Finance Plc
    Norman Kenvyn
    Managing Director
    020 7628 4004
    or
    St. Helen's Finance Plc
    Rick Abbott
    Chairman
    020 7628 4004
    Email: info@sthelensfinance.com
    or
    Fisher Corporate Plc
    Gary Miller
    020 7388 7000
    or
    Bishopsgate Communications Limited
    Dominic Barretto
    020 7562 3350
    or
    Bishopsgate Communications Limited
    Gemma O'Hara
    020 7562 3350