STRONG growth in all geographic areas has pushed Woodchester Investments'

pre-tax profit up by 25 per cent to £21.42 million from £17.16 million in the six months to June 30th, 1996.

Shareholders will benefit from the better-than-expected results. The interim dividend is being raised from 2.75p to 3.16p.

New advances grew strongly with new business written amounting to some £600 million in the first half. This represented a 46 per cent rise. Chairman, Mr Craig McKinney attributed the increase to strong growth in existing businesses in all its markets, together with the inclusion of Anglo Group in Britain and the Crediloc, Cargeste and Carloga companies in Portugal. New business margins are similar to last year's level.

Advances to customers have passed the £2 billion mark for the first time, up from £1.8 billion in the first half of last year. Deposits, by banks, also grew strongly from £1.47 billion to £1.65 billion. Other deposits rose by 34 per cent to £275 million and are projected to grow to more than £400 million.

Group net interest income rose from £41.1 million to £51.5 million. Fees and income went up from £5.94 million to £9.61 million and dealing profits increased from £370,000 to £1.7 million, reflecting the benefits now coming from the merger of the Gandon and Woodchester treasury teams.

However, administrative expenses grew from £23.9 million to £33.2 million. Nevertheless, the cost/income ratio fell marginally to 57.6 per cent and the objective was to improve this further, said Mr McKinney.

Earnings per share rose from 6.24p to 7.41p. It still has surplus capital which is reflected by a tier one capital ratio of 11 per cent compared with a required level of 4 per cent.

Bad debt provisions rose from £4.7 million to £5.7 million. However, non-performing loans as a percentage of total loans fell from 3.9 per cent to 2.8 per cent.

The Irish operations are becoming less important to the group. They accounted for 38 per cent of profit, down from 44 per cent. In contrast, the British operations - now accounting for 42 per cent, up from 39 per cent - have taken over the lead. The share of profits coming from Denmark and Portugal has also increased.

Irish operations increased profits by 15 per cent to £9.7 million. They benefited from the very buoyant car market with a significant" increase in motor finance. Woodchester increased its market share of the new car finance market.

Mr McKinney noted that the group had made a good start in Northern Ireland through its association with motor group, Charles Hurst. Indeed, its targets had been exceeded. It now expects to write some £20 million of new business this year, rising to £50 million in 1997.

There was also good growth in Britain with the motor finance division showing good growth in new business volumes". The plan is to significantly increase this business. The British business was also helped by the inclusion of leasing company, Anglo Group which had a "very good first half". Overall, the British operations increased their profits by 39 per cent to £10.3 million.

The Danish operations continue to "go from strength to strength".