News

Impact slumps on huge bad debt write off

31 May 2007 15:08:00

Impact Holdings plunged by more than 50% as it warned it is writing off a "substantial proportion" of its UK loan book with its chairman, Bruce Judge, standing down immediately.

"These provisions relate to exposure entered into prior to October 2006 and relate to the disbursement funding for the Right To Buy market, where the conversion rate and the replacement ratio of new loans to failed completions has been significantly below the company's original expectations," the statement said.

Provisions in the figures to March will total approximately £5.6m and the value of goodwill attributable to the acquisition of Impact Funding (UK) Limited will be written down to its estimated recoverable amount of £0.7m. Based on the interim statements as at 30th September 2006 this represents a write off of approximately £1.3m, the statement said.

"The provisions include £4m for the Right To Buy book, £1.2m for a term loan and £430,000 for the solicitor lending. In addition the company is taking steps to recover a secured loan of £200,000 made to a previous director," the statement added.

Plans to buy a £1.86m solicitor lending loan book announced in February have been scrapped. Richard Kilsby will undertake the role of interim Chairman until a suitable candidate can be found.

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