Non-Standard Finance (NSF), an investor in alternative lenders, has more than tripled its pre-tax profit for the first half of 2016.
NSF offer credit to UK adults not served by mainstream financial services businesses, focussing on home credit, branch-based lending and guaranteed loans.
The first half performance report highlights revenue of £31.3m, (excluding fair value adjustments and amortisation of acquired intangible), with impairments of £9.9m.
The pre-tax profit for the first half of 2016 was £1.6m, opposed to a deficit of £858,000 reported for the same period last year.
Previously in 2015 NSF had no operational businesses, this year it has three divisions in Everyday Loans, Loans at Home and Trusttwo as well as a combined loan book of £147m.
On track with its 20 percent annual targets of loan book growth and return on assets. The company also reported that its shares rose six percent.
John van Kuffeler, Non-Standard Finance’s chairman, said: “The vast majority of our customers benefit from our face-to-face model that delivers positive customer outcomes and has a history of robust performance during periods of economic uncertainty.
“In addition, Britain’s decision to leave the EU may increase demand for our products if mainstream lenders seek to tighten credit further. Since the end of June 2016, each of our businesses has continued to deliver loan book growth and while the important Christmas period lies ahead for Loans at Home, the group’s performance to-date underpins our confidence in the full year outlook.”
NSF forecast its pre-tax profit for the entire year of 2016 to be £15.2m.