10 December 2010 – trading statement

The group has issued an interim management statement for the period 1 August to 9 December which has confirmed that despite difficult trading conditions it is performing in line with expectations.  Customers in the Home Credit business have become understandably more cautious due to job insecurity and potentially lower levels of Government benefits, whilst the Motor Finance division has also seen a slight slowdown in transactions growth.  However, cash flow is strong with net borrowings falling by £2m during the period and these are now at the lowest level since 2001.  We continue to rate the shares as a LONG TERM BUY.