Venture Finance was unwittingly caught up in the problems surrounding Fortis as Fortis had supposedly acquired them as part of the carve up of ABN Amro but had then been told to divest themselves of the ABN assets as part of their own rescue by various Governments.
Venture Finance remains part of the ABN Amro group which in turn is now owned by the Dutch Government so we are pleased to see that their foundation is now secure.
Administrators have been appointed to Quest 4 Finance Ltd who operated the Wageroller facility. Whilst never wholly convinced enough about the payroll funding facility to actually introduce any business to the company it is still sad to see their demise as the product was fairly innovative.
Less than a year after Davenham rejected an £84m takeover bid at £3.25 per share an announcement that record bad debts will wipe out any profits has seen the share price tumble to just 8.25p
The company has taken measures to react to changing circumstances by making a large number of staff redundant whilst employing more people in it’s arrears department but there are still concerns that the problems that originate in the property division might impact on the factoring and trade finance divisions.
Davenhams have some niche products for financing the SME sector including a stock finance facility that is quite innovative and we would hate to see that plunging property values will affect the company’s ability to continue increasing it’s presence in the factoring arena
In these fast moving and difficult times one has to be doubly careful of press releases and PR exercises as they may leave you with egg on your face at a later stage.
The current edition of the glossy magazine Business Money has a full colour cover devoted to Landsbanki which will no doubt continue to be an embarrassment to it’s editor until the next edition comes out whilst Venture Finance sent out a press release on 25th September telling the world about the new larger premises that they were moving into on 1st October in order to facilitate the integration of all the extra people upon their integration with Fortis. This was less than two weeks before the announcement that Fortis was being nationalised and the integration would now no longer be going ahead.
The half percent reduction in bank lending rates last week may not be greeted quite so warmly by some factoring clients as they could find that their agreement stipulates that base will be a minimum of 5% as is the case with one of the largest of the independent factoring companies.