The decision by specialist bank and finance group Broadcastle to focus on business-to-business work is paying off. Moving away from consumer finance has reduced the group's risk profile, and it is now strongly placed in a number of niche areas and is benefiting from a variety of income streams.
Increasing levels of fee income are feeding directly onto the bottom line, as business work is less capital-intensive. The majority of fee income comes from its invoice discounting and medical operations. This totalled Ј656,000 (Ј484,000 last year) in the six months to 30 June 2003, and contributed Ј600,000 to last year's results.
Broadcastle's other main source of revenue is income from the finance side of the business. This includes leasing, hire-purchase and contract hire.
A good performance by all of the group's operating divisions underlies the rise in first-half profits, which grew from Ј1.33m last year to Ј1.54m.
Source: Investors Chronicle
