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.

Well thanks for that.

cheers GF.

Up for results in the morning.

Cheers GF.

not the response was hoping for after the interims, is it just profit taking
what do you think gf, jimmy, hustler?

This happened the other day ,it seems to swing quite wildly when there is selling or buying ,i was hoping for a rise on results ,just have to wait.

Short termers taking profits.

Profits in line no probs. Ive added at 358p

Results..............

Davenham Group PLC
24 February 2006


Friday, 24 February 2006

Davenham Group plc

Interim Results

For the six months ended 31 December 2005

Davenham, a leading independent asset based lender to the UK SME sector, today
announces its interim results for the six months ended 31 December 2005

Key Developments:

- Turnover up 17% to 15.9m (2004: 13.6m)

- Adjusted pre-tax profit* up 8% to 4.5m (2004: 4.2m)

- **Adjusted diluted earnings per share* increased by 10% to 17.87p
(2004: 16.27p)

- Loan portfolio increased by 16% to 166m (2004: 143m)

- New appointments significantly strengthened Board and management team

- Investment in additional South East personnel and new product launches

*before exceptional costs of 1.8m in relation to the AIM IPO.
**in order to be consistent with both future and previous periods the adjusted
diluted earnings per share, as noted above, is shown prior to reclassification
of any equity as a debt instrument, as defined by FRS 25. This is on the basis
that the class of equity in question ceased to exist at 22 November 2005 and
therefore provides a comparable analysis to the reader - refer to note 4. In
the prior year periods, shares held in the Employee Benefit Trust are treated
as cancelled for the purposes of the earnings per share calculation.


Commenting on the results, David Coates, Chief Executive, said:

'The Group has performed in line with expectations in the year to date, against
a background of changing economic conditions.

'In the second half of the current financial year, we will be focused on
maintaining the balance between our drive for new business and adherence to our
credit control and risk management procedures.'


For further information, please contact:
www.davenham.co.uk


Davenham On 24 February 2006: 020 7360 4900
David Coates, Chief Executive Thereafter: 0161 832 8484

Smithfield 020 7360 4900
Reg Hoare/Katie Hunt

Print resolution images are available for the media to view and download from

www.vismedia.co.uk


cheers GF.

Also looks like the MMs have been naughty here and tried to hood wink holders into selling due to the nature of the managements report on the years business (including the IPO costs).

cheers Gf.

I have sold out today as the shares look expensive compared to other similar companies shares.

Which ones ,please share it with us ..

Hi EVO in reply
Dav posted as market expectations
not good enough in my opinion
we were hoping for a lot more
refer to post 269.
Eps growth next time not enough,
sell off may be overdone who knowes
next week will confirm.
Up monday will hold, down will sell
regards
HUSTLER

I wasn't impressed with the statement , he could have sounded a little bit more upbeat imo.

Hovering just above my short term stop loss , long term think they'll be fine but if SL is breached then I too will be on the sidelines.

Statement was poor as is the outlook.
Look fully valued to me.

Sod off half breed.

The company came right on forecasts as predicted by management in trading update before results, you cant do any better than that. i think some where hood winked into selling here by the MMs actions on the complicated maiden results report.

cheers GF.

Heavy selling today on profit downgrade.

Overvalued.
Better value elsewhere in sector.

Down 35p since I called these a sell.

Yeah and HRR down 11 quid since you told me they were a buy.

Never heard of HRR.
What are they all about ?

Hawks taking profits after a great run from the IPO.

Will add again when the market looks right.

cheers GF.

A new forecast from Panmure Gordon has appeared on Hemscott (eps only), as follows (with their previous forecast in brackets):

2006 29.10p (28.90p)
2007 33.00p (33.90p)

So up a bit for 2006, down a bit for 2007. Sharescope has a forecast of 38.10p for 2008, which we can assume is also from Panmure (since Sharescope gets its information from Hemscott).


cheers Gf.

Back in the blue.

cheers GF.

Im still here ,, offloaded my CFD a while back but still holding the shares ..