London Scottish Bank, parent of London Scottish Invoice Finance Ltd (formerly Isis Factors plc and Sygnet Invoice Finance Ltd), has increased its pre-tax profit for the full year by 15 per cent to Ј19.8m, helped by a sharply higher contribution from its fast-growing Robinson Way debt collection operation.
Factoring and leasing profits were 17 per cent up at Ј2.3m and reinsurance profits rose 10 per cent to Ј2.7m. London Scottish's performance was boosted by a Ј3.2m release from the claims reserve in its reinsurance operation and this more than offset the Ј2.7m invested in upgrading the IT system.
Operating income rose 23 per cent to Ј87.9m in the year ended 31 October 2003 and costs rose 26 per cent to Ј60.5m.
Bad debt charges rose 16 per cent to Ј6.5m, of which Ј6.1m was in the traditional consumer lending business.
The ratio of bad debt charges to net balances in consumer credit rose from 3.7 per cent to 3.9 per cent.
