Close Brothers: Bad Debt Ratio Improves Slightly, Funds Flat

23rd Jul 2010 07:15

LONDON (Dow Jones)--Financial services company Close Brothers Group PLC (CBG.LN) Friday said its bad debt ratio improved marginally in the five months to June 30, but warned it is still sensitive to the economic environment, and reported no increase in funds under management. In an update on trading for the year to July 31, Close Brothers said funds under management were unchanged at GBP7.3 billion as at June 30--the same as at Jan. 31--with the revenue margin consistent with the first half. The company said it was confident of delivering a "solid overall performance" for fiscal 2010. Close Brothers said its loan book totaled GBP2.9 billion at June 30, up from GBP2.6 billion at the end of January, with good organic growth from its asset finance unit as well as its motor and premium finance divisions. The asset management division's underlying results in the five months to June 30 were subdued relative to the first half, the company said, despite investment gains in the third and fourth quarters. Its securities division meanwhile performed well but Close Brothers said trading was more difficult later in the second half. Close Brothers will release its preliminary results Sept. 28. -By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; [email protected] (END) Dow Jones Newswires July 23, 2010 02:15 ET (06:15 GMT)