Cash flow finance minnow Ultimate Finance suggests the credit crunch could reduce competitive pressures after making £302,000 pre-tax.

Headed by experienced chief executive Brian Sumner, who launched Lloyds TSB’s Commercial Clients division, AIM-quoted Ultimate provides invoice discounting, factoring and kindred financial services to commercial clients typically turning over up to £15 million a year. Manchester broker WH Ireland holds 23 per cent of Ultimate, which saw profits growth slow from the previous year’s 13-fold recovery to an eight per cent increase on turnover up 15 per cent to £4 million in the year to June.

A veteran of the Alex Lawrie finance group, Sumner claims Ultimate, whose biggest single loan so far has been in the region of £750,000, scores with small company clients by being able to offer a more ‘tailored’ service than the subsidiaries of big banks. He says he expects the present credit crunch to deter the banks from vying aggressively for market share in Ultimate’s chosen fields, thus allowing terms to harden and margins to expand.

In a period of consolidation, Sumner says he wants Ultimate, whose activities extend to funding £2 million management buy-ins in the Home Counties, to be an acquirer, where suitable acquisitions present themselves. At 11.25p, half their 2002 float price and valuing the company at £2.25 million, the shares have some appeal on long-term recovery hopes.

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Ultimate Finance Group	AIM	£1.1m	5.50p	0.00p
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