Acquisitve venture financier General Capital Group has lifted first-half pre-tax profits from £100,000 to £2.8 million.

Glasgow-based General, which provides equity-linked loans on tough terms to stretched smaller companies, increased revenues 127 per cent to £6.8 million in the six months to June. The AIM-listed company, which raised £10 million in March at 130p when it bought finance group Norton Folgate for £2.6 million, has been looking forward to the present credit crunch.

General, founded by deputy chairman Jonathan Hill and run by managing director Mark Edworthy, made £1.1 million on exiting from one client, recruitment group Greatfleet, and increased its total portfolio 28 per cent to £43 million. The company argues a credit crunch makes banks withdraw as competitors for business, lenders can obtain better security with depressed asset values and there is wider scope for raising rates and fees.

General's shares, which rose from 100p in 2004 to 159p last July, have performed disappointingly since Growth Company Investor highlighted them that same month at 138.5p. They now stand at 121p, up 4p today, valuing the company at £30.4 million.

But they still have speculative potential.

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General Capital Group	AIM	£0.57m	2.25p	0.00p
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