Overseas boost for London Forfaiting
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE gloom in the economy did not prevent London Forfaiting, the specialist trade financing company, raising its half-year profit from pounds 6.6m to pounds 8.4m before tax, mainly as a result of overseas expansion and careful cash management.
The firm has strengthened its operations in Hong Kong, Italy, Germany and the US over the past six months at a time when business in the UK has been flat.
Business has also been helped by diminishing competition from banks. 'The banks have been less aggressive because of their other problems,' Jack Wilson, chief executive, said.
The firm has remained a net depositor with banks, so interest income exceeded payments by pounds 1.6m during the six months.
London Forfaiting has taken a cautious view of the size of its portfolio of trade paper. This fluctuates daily but has tended to approximate in size to the firm's capital and reserves of pounds 111m. The firm could operate at up to five times capital and reserves.
Mr Wilson said there was no sign of a respite for exporters in the UK. 'I'm rather depressed that at a time of severe recession we should have a trading deficit, with exporters having problems with their prices.'
He added: 'Whether a devaluation is appropriate or not at this point I don't know, but I don't think the current exchange rate is helpful for exporters.'
Trading income rose pounds 2m to pounds 10.9m compared with a year earlier, and after-tax profit was up from pounds 5m to pounds 6.4m, with the dividend up 10.5 per cent. Mr Wilson said that trading would continue satisfactorily in the second half. The shares, on the Unlisted Securities Market, rose 1p to 121p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments