UK specialist lender London Scottish Bank said its broking division has been hit by the challenging market conditions.
Despite the warning, the company said cost reductions have meant an improved second half. Meanwhile its mortgage business, London Scottish Mortgages (LSM), continues to grow 'conservatively', it added.
LSM will migrate its account management and processing from a third party service provider to in-house systems and this investment is expected to deliver material efficiency gains going forward.
The company said its debt collection business, Robinson Way, has continued to grow strongly, with portfolio debt purchases up significantly, while its factoring division has performed well, producing an excellent return on capital.
Robinson Way continues to focus on increasing the profitability of its third party contingency debt collection business which has led to higher margins in the second half. The company announced it has appointed Robin Ashton as its new chief executive, effective from 3 December. Shares were unmoved at 73p.