Finance Ireland, the holding company of Shared Home Investment Plan (SHIP) which specialises in equity release mortgages, has reported pre-tax losses of €881,000 for the six months to June 30th.
The half-year results reflect an ongoing improvement in the core business of the company, which is lifetime mortgages for the over-55s market, and trading is broadly in line with expectations despite the fall in house prices throughout 2007, the company said.
"Growth in lifetime mortgages was slower than forecast in the first six months, mainly due to adverse press commentary on the equity release market.
"As a result of ongoing radio and television advertising, sales improved in the third quarter and the outlook for the remainder of the year is positive," said chairman and chief executive Billy Kane.
The company's home reversion portfolio increased from 45 to 102 properties following the acquisition of SHIP Property Trading (One) Limited on 31st January 2007 for €5.5 million
The results also reflect a share of the start-up losses attributable to Nua Homeloans, its sub-prime mortgage business launched in April 2007.
That business is trading in line with expectations, according to Mr Kane. "Despite uncertainties in financial markets, Nua has committed funding lines with its business partner Investec Holdings (Ireland) Limited," he said.
Shareholder funds were up 19 per cent to €15.7 million and total assets have increased by 40 per cent to just under €68 million, Mr Kane said.
"The group continues to seek opportunities in niche retail financial services and is currently exploring the possibility of launching a specialist car finance subsidiary before December 2007," he said.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)