Asset based lending firm Davenham Group (LON:DAV) this morning signalled that it was reaching the end of the road in trying to find a way forward for the business and that it was now ceasing to write any new business and planning to delist from AIM. The move follows a strategic review of the group by advisory firm Hawkpoint Partners, which already confirmed in May that there would be little or no value remaining for ordinary shareholders in the company.

With the strategic review now complete, and with the support of its bank syndicate, Davenham is now set to collect in its loan books. It said the detailed parameters of that run-off were being finalised with the banking syndicate, to ensure a stable platform. The company added that in the circumstances and having regard to the ongoing costs of maintaining a listing of its shares, it would now seek shareholder approval for a cancellation. Shares in the company today fell by 71% to 0.5p.

Today’s news marks the failure of an earlier strategic review that triggered an overhaul of Davenham’s business in March 2009 and a £215m refinancing of its banking facilities to support a new strategy focused on its asset and trade finance divisions. The company’s property lending division was hit particularly hard in the aftermath of the 2008 market crash, which saw a rapid deterioration in both the value and liquidity of property assets. As part of the reorganisation, the company took an impairment charge of around £38m, of which around 90% was connected with its property loans, but said it would continue with its selective trade and asset lending. In the half year to December 2009, revenues dropped to £17.4m from £27.0m with pre-tax losses reduced to £8.0m from £30.4m.

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