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Debtmatters Group PLC who listed in June last year and bought Bolton based secured loans specialist Loanmakers in June this year have given a Pre-Close trading update.

In it they say trading has been strong with the following highlights

• Trading comfortably in line with upper end of market consensus
• Approved case volumes consistently above 500 per month
• Conversion rate in the region of 8% of all consumers contacting us for advise
• Loanmakers acquisition successfully integrated into the Group and trading in line with expectations
• Group now cash generative
• Established infrastructure providing platform for continued growth

Specifically about the secured loans business, Debtmatters says

“Loanmakers has performed well since acquisition in June. Trading volumes are encouraging and in line with expectations. As previously announced, it will shortly be relocating to new premises adjacent to Debtmatters, allowing expansion in staff numbers and organic growth. Cross referral opportunities between Group companies are now being identified and we anticipate this will grow successfully in the coming months.”

The shares opened +4p (1.14%).

I just hope the group never finds itself in financial difficulty or it will probably find its ticker symbol “DEBT” an unfortunate one!

With the arrival of Kensington Group PLC (KGN) we have a new entry on the list of quoted UK companies dealing in secured loans. There doesn’t appear to have been a stock market announcement, but Kensington has said they will enter the second charges market with the launch of Kensington Personal Loans (KPL).

Kensington has said, KPL will set new industry standards and offer market leading products to a range of borrowers, from near prime to unlimited adversity, with criteria such as self-certification up to 90% LTV for clients with arrears and loan amounts up to £100,000.

The products will initially only be available via a small number of packagers, so that Kensington can monitor and maintain its high service standards, before a full roll-out in the near future. They will include features such as no minimum trading levels for self certification, self-employed borrowers and a self-certified option for employed borrowers on up to 20% of earnings.

Alison Hutchinson, Managing Director of Kensington Personal Loans, said: “A decade ago, Kensington Mortgages pioneered a new way of lending for the first charge market and now we are taking this approach to support the transformation of the secured loan sector. Our products have been designed to meet the needs of our customers, resulting in unique features on both our secured loan and related insurance products, including no minimum trading for self certification, self-employed applicants and self certification for employed applicants. Our service is built on Kensington’s high standards and focuses on speed of decisions and pay out, with dedicated relationship underwriters and same day payment to customers. In addition we are seeking to lead the way in preparing for future regulation and we will be the only player in our market to move to 1+1 redemption charges across our full range of loan products, as well as features such as “back to day one” benefits on our insurance products”.

There is said to have been high demand and interest from intermediaries, with many involved in discussions that have shaped Kensington and KPL’s initial secured loan offerings.

Following on from my report that FISA is to bring in the consultants Impact Plus, there has been positive feedback from the industry.

Andrew Moody, managing director of LoanOptions, supported the move. He said: “FISA has done a very good job of helping industry to regulate itself, and it continues to demonstrate strong leadership during changing times.”

And Bob Sturges, director of communications at Money Partners, agreed: “FISA was the sector’s sincere and well-meaning attempt to add a degree of self-regulation when statutory regulation was not even on the agenda. It has served the industry well and it has done a good job.”

However, he believed the time was right for it to review its strategy. He said: “FISA needs to take a long hard look at is position and its future. To appoint an external adviser makes perfect sense, and its members and board should be commended for recognising that the market is changing.”

Commenting on previous industry calls for the secured loans market to be regulated by the Financial Services Authority (FSA), Moody said: “The regulation of the secured loans market will continue to raise its head but both the Office of Fair Trading (OFT) and the FSA seem to have ruled it out, at least for now.”

Sturges pointed to the increasing powers of the OFT in place of regulation by the FSA. He said: “The Consumer Credit Act 2006 considerably strengthened the powers of the OFT - the current regulator of secured loans. When the £25,000 threshold is s crapped in 2008 it means virtually all secured loans will be regulated.”