Impact Holdings stock down 30% on half-year results

Impact Holdings shares fell by a third on Friday, as it suspended the recognition of revenue figures amid a Supreme Court case against its debtors.

The AIM-listed specialist lender announced its unaudited half-year results for the six months ended 30 September 2015.

In the report, Impact Holdings highlighted its increase in cash and cash equivalents over the previous corresponding period, from £0.63m to £0.79m.

Its net assets increased from £5.34m to £5.59m, and debt was down 14% year-on-year to £1.04m.

Impact Holdings did increase the size of its loss after tax, however, to £248,582 (from £234,933 in 2014), equivalent to a loss of 9.4p per share.

"The recognition of revenue, normally generated from loans to clients of solicitor firms, has been suspended pending the outcome of a hearing in the Supreme Court to be heard in June 2016," said Impact Holdings chairman Roger Barlow.

"The directors and their legal team remain confident that the Appeal Court decision handed down in February 2015 will be upheld by the Supreme Court, which would result in further recoveries thereafter from a number of professional indemnity insurers of those solicitor firms who have defaulted on the loans advanced", he added.

Barlow said the group continued to incur upfront legal expenses in seeking to recover loans which had been previously provided against by the group.

He confirmed Impact recently settles one litigated claim against a firm of former professional advisors on advantageous terms, and now await the result of the Supreme Court appeal.

"The Board of Directors is committed to the opportunities identified and continues to develop the strategy which is expected to provide, over time, enhanced shareholder value", he concluded.

At 12:25 GMT, shares in Impact Holdings had nosedived by 30.29%, to 72.5p.