London Scottish Bank Group says its factoring and leasing divisions have continued to progress during the second half. Whilst the market is competitive the factoring division has built a high quality business with a strong return on investment.
Leasing continues to build its receivables book and improve its contribution to the group's profits.
The group's overall bad debt charge as a ratio to receivables will show a slight increase on last year as provisions have increased in the traditional home collected credit business. Bad debt charges in factoring and leasing will be less than last year.
Robinson Way, the Group's debt collections division, has experienced a strong second half and performed ahead of expectations. Whilst the debt collection market is still competitive, new accounts from its traditional suppliers have increased.
