Buoyant year for short term lender Goldentree

Date added: 30/10/2014

GOLDENTREE Financial Services, which funds deals for builders and developers, has reported a year of strong growth.

The Warrington firm, which specialises in short terms lending, is part of serial entrepreneurs Peter and Fred Done's business portfolio.

In the year to the end of March the company grew its loan book by 33% from £46.7m to £62.2m as demand surged in line with renewed economic confidence aided by government initiatives to boost the construction and housebuilding sector.

Turnover grew 44% from £5.2m to £7.6m and profits by 10% to £3.08m. Goldentree has continued to hire more staff too and now has a team of 20, compared with half a dozen four years ago.

Managing Director Steve Marsh told TheBusinessDesk.com that Goldentree's traditional approach to lending - his team visits every project it is asked to fund - has also helped it to perform so well.
 
"Market conditions for our business have been and continue to be good. There's increasing confidence in the property sector - more people are doing deals again. Two thirds of what we do to small and medium-sized developers and they now have the confidence to invest now there is a degree of stability in the economy."

He said too that the "mainstream funders" were not active in the short term property lending market too, which was also helping Goldentree.

Until this year the business was funded solely by BetFred supremo Fred and his younger brother Peter, who runs the Peninsular legal and health and safety advice consultancy, but has recently agreed a funding line with lender PNC, which will give "more firepower", Mr Marsh said. 

"Demand in the current year is really strong and we're ahead of budget. We have a very, very good pipeline. If you can't make money in this market, then you never will", he added.