As expected, the 2004 results for car finance provider Private & Commercial (P&C) were pretty dire. Having spent 18 months locked in a court battle with National Insurance & Guarantee, the company was vindicated last May when it won its damages claim and was awarded £4m. The downside is that it affected performance as the company reined back new business growth and allowed its motor finance receivables portfolio to decline as a hedge against the ruling going against it. This accounts for the increased pre-tax loss from £1.6m to £2.7m on flat turnover of £31m. Chief executive Tony Nelson admitted that although strong growth was seen in the business finance division, the consumer finance side experienced a tough time as consumer spending slowed and competition remained intense. Nelson believes an acquisition strategy will help him rebuild P&C's portfolio, combat the competition issues and lead to greater economies of scale. To boost business, P&C launched Karma Cars in late 2004, a second hand car retail operation that enables cross selling of its finance products. In addition, it hired Graham Dry, formerly of Perry Motors, on a temporary basis to iron out teething issues with this division. It is yet to be profitable but Nelson is cautiously optimistic that it could start contributing in 'months rather than years'. A speculative buy for those with a penchant for risk.