Paul Carter, head of out-of-favour debt management and consumer loans company Relax Group, is considering taking the company into the front line of the secured mortgage business, just when many other sources have dried up in the credit crunch.
The product of Carter’s Debts.co.uk purchase of loans and mortgage broker Relax Finance for £3m, the company is contemplating establishing a large line of credit in its own name to lend on secured mortgages.
This might seem a brave move, when some major finance providers have recently pulled out of this field and the mortgage market is generally seen as dire. But Relax, whose Debts.co.uk side has tended to score counter-cyclically when times are tough for consumers, claims there is profitable potential in a field where it sees demand as strong, and competitors are pulling out.
The company insists it has no intention of becoming a lender of last resort. However, Relax Finance has already ‘ring fenced’ lines of credit with smaller lenders and is understood to be actively pursuing a variety of options.
Carter and his Relax colleagues are looking at moving into other possible services, such as managed banking facilities. Having fallen nearly 90 per cent in two years to 24.5p, the shares could stage a rally if the new plans look like bearing fruit.
Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.
Market cap: £7.5m
PE Forecast: n/a
Share price: 24.5p
More breaking news stories.
More extended feature articles.
And a depth of analysis you
can't find anywhere else.
Advertisement
VCT Report 2010 uncovers the money available
for investment in every single VCT, helping you get one step ahead in the race to attract funding for your unquoted, AIM-listed or PLUS-quoted
company.
Order VCT Report 2010 today using this online form
A comprehensive overview of cash shells on AIM and PLUS, companies that have become a significant feature on the market landscape. For more information and to order, click here or contact our marketing team on 020 7250 7056.
Informative features and research on fast-growing companies, small-cap and growth stocks, penny shares, stock market tips and share recommendations, directors' dealings, company news and analysis, new issues and upcoming IPOs.
A full year's subscription to What Investment magazine for £19.95, a whopping 58% off. Get the latest news, features and expert advice on ISAs, Investment Trusts and Funds, SIPPS, Investing for Children and much much
more. Find out more here.
is the definitive and most up-to-date guide to completing your self-assessment tax return, making sure that you get it right and on time, and showing how you can save tax. For more information and to order, click here or contact our marketing team on 020 7250 7056.
The new, fully updated AIM Guide is now available to buy for only £49.95 (saving you £30).
A 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies. Order your copy today Hurry, as offer ends soon!
Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.
Advertisement
Delcam, the international seller of CAD/CAM software to the engineering, aerospace and healthcare sectors among others, is a cash-generative small-cap seeing recovery in its markets.
Bombed-out biotech play Antisoma is hoping two of its drugs will lead to good fortune after experiencing disaster with lung cancer treatment ASA404.
London pub operator The Capital Pub Company is seeing continuing sales growth on the back of a surprisingly resilient market.