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Last Updated: Tuesday, 26 February 2008, 09:53 GMT
Lender moves to debt collection
council homes
Mortgage and loan firm London Scottish Bank has said it is to end its lending business to focus on debt collection.

The Manchester-based financial group announced a 5.6m loss in 2007, compared with a 16.5m profit in 2006.

The company said it intended to sell or close its lending business, which specialises in mortgages for council right-to-buy and high-rise flats.

It will concentrate in future on Robinson's Way, its debt collection firm where profits rose 57% to 13.9m.

Robinson's Way collects debts on a commission basis for a variety of lenders and utility companies.

A company spokesperson denied the move was prompted by the continuing credit crisis.

London Scottish said it expected 2008 to be a "year of change".

"Financial performance is likely to be subdued until the group has completed its refocusing," the company said.

London Scottish's shares have fallen 80% in the last 12 months.

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