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.