Ive had these on the watch list for a few weeks now and the company seems to be getting a lot of Institutional Interest.

Its basically an asset based lender to smaller companys and carrys out a similar business to that of the big clearing banks, but as the economy gets tighter and bank lending gets more difficult to secure customers are turning to this Northern based company as an alternative.

Description Of Business.

Davenham is a leading, independent asset based lender to the UK SME sector.

The business was founded in 1991 in Manchester from where its core operations
are run. In recent years, Davenham has begun to expand and it now also operates
from offices in Leeds, Birmingham, Liverpool and Newcastle.

Davenham provides lending solutions designed to meet the financing needs of UK
SMEs - typically involving loans of between 10,000 and 3 million. The
Directors believe this is a profitable and attractive market place that is not
adequately serviced by mainstream lenders, which tend to adopt a formulaic
approach to lending decisions. Davenham has a diverse loan portfolio, with its
lending activities organised into three divisions: property finance, asset
finance and trade finance.

Davenham enjoys strong client relationships reflecting high levels of customer
service and tailored financing packages. The Directors believe that Davenham's
ability to form a commercial view and reach lending decisions quickly underpins
premium rates and high levels of repeat business. New clients are typically
sourced through introductions from existing clients, direct approaches and a
network including mainstream lenders, finance brokers, accountancy firms and
other professionals.

Davenham has a strong financial record both in terms of revenue growth and
profitability and has consistently achieved a gross return on loan portfolio of
circa 20 per cent. The Directors believe this results from Davenham's position
as a leading lender in a profitable and niche market place in which the
competition is fragmented.

Davenham is funded by a group of banks led by The Royal Bank of Scotland plc and
has a facility of 175 million, which the Directors believe is sufficient for
Davenham's current requirements.

The Placing:

Davenham, a leading independent asset based lender to the UK SME
sector, announces completion of its admission to AIM and that trading in its
ordinary shares commenced at 8.00am today.

Panmure Gordon, the Company's broker, has placed 10.9 million new
ordinary shares on behalf of the Company raising approximately 27.7 million
before expenses, and also placed approximately 6.7 million existing ordinary
shares for approximately 16.9 million on behalf of selling shareholders.

Approximately 17.2 million of the proceeds of the issue of new
ordinary shares will be used to redeem certain loan notes and mezzanine debt.
The balance of 10.5 million will be used to increase the capital base of
Davenham and to pay for the expenses of the flotation.

Davenham will be included in the Speciality and Other Finance sector
and will have an EPIC code of DAV.L.

Hawkpoint is the nominated adviser and financial adviser to Davenham
and Panmure Gordon is broker.

Dunedin and Indigo backed the buyout of Davenham in 2000 and have
supported the Company through to a successful flotation. They will remain
supportive shareholders.

The placing took place at 254p.

Director Speak.

David Coates, Chief Executive said:

'We are delighted by the positive response to the placing and the completion of
our admission to trading on AIM. I am pleased to welcome our new institutional
investors as shareholders of Davenham.

'We are well positioned to capitalise on the attractive growth opportunities in
our market place and we believe the flotation will raise our profile and support
future growth by strengthening our ability to lend, expand into the Midlands and
the South of the UK and fund selective acquisitions.'

I see from the Brokers forecasts that the Pospective P/E is approx 10 falling the year after. Might be rewarding to get in at this early stage.

DYOR.

Cheers GF.

Going strong. Four consecutive days of good volume. Share price up a solid 20% in January.

A share price of 383.5p would take it above 100m cap and bring it onto a few more radar screens. Might see that within 2-3 weeks?

Website worth a look www.davenham.co.uk

You mean onto the radar of fund managers juzzle?.

cheers GF.

Customary rise going on.

cheers GF,

Added a few more this morning. Money from Divis which have just been hanging about.

cheers GF.

Didnt rise today, whats going on?. Is there some kind of MM conspiracy?.

cheers GF.

I was talking to a mortgage broker in Swansea on Thursday evening and casually asked had he ever heard of Davenham and his instant reply was "excellent firm" which was nice to hear. He has apparently put four housing developers in touch with them in the past few months and the feedback has been favourable - particularly with regard to awareness of exactly what each builder's project needed.

Calm down GF wer'e getting there ...:-)
More buying in the last two days (Goldman Sachs) ,and the sp up about 11% in the last three weeks ..

Nice one Juzzle, always good to hear some word from the street. What`s with all the delayed trade buys after the final whistle today? mmmm

edited by moneyam

Appears they don't have a sense of humour mate , allright to kidnap civilians and cut their throats to show on the internet though.

Fcuk religion , what good has it ever it done ?

Wrexham 2 Wycombe ( leaders of div 2) 0

Class always shines through in the end.

On the subject of religion Mr Dil I thought you were a jewboy ?

Just seen some VT of that demonstration in London by the Muslims against the cartoons.

What a shower of shysters who should be put against the wall and shot. They were parading signs saying such things as "behead all non believers of Islam".

Its time we cracked down on these immigrants who hate the west so much and fucking deport them.

I am getting more and tempted by the day to join the BNP.

How does all this relate to DAV?

It doesn't dandu ,,and i wish they would just f..k off and post somewhere else, ADVFN would suit them better ,,load of losers

Being the good old boy that i am, i thought i'd bring the thread back to whats its supposed to be about...DAV



regards
Michael Barrymore (MoneyAm)

Ok dom - let's see your sticker ;)

Present rolling P/E just over 12 and derd cheap.

cheers GF.

In the blue once again.

cheers GF.

Up 1.5p . A nice steady trickle in the right direction.

Luvly Jubly DM

Yup Dave, it just keeps going up, mind I was aware that it went off far too cheap and bickering with the institutions opened a window that private investors fairly get.

Nice mind.

cheers GF.