Regulatory News Announcement

RNS Number:7640S 
Potential Finance Group PLC 
21 April 2008 
 
Potential Finance Group plc 
 
Trading Update 
 
 
 
The Board is pleased to provide the following update on trading within the 
Group's businesses for the six months to 31 March 2008. 
 
 
 
Potential Vehicle Hire 
 
 
 
When we reported on our September 2007 financial result, we stated that we 
anticipated further expansion in the fleet operated by Potential Vehicle Hire 
(PVH), our light commercial vehicle rental business. 
 
 
 
We are pleased to report that PVH has experienced significant growth in the last 
six months and that the fleet size is now approaching the 1,000 vehicle 
milestone. 
 
 
 
This growth is underpinned by the high quality service that we provide to our 
clients, which has resulted in exceptional utilisation levels since we commenced 
trading in early 2007. 
 
 
 
With the trend continuing to move towards vehicle 'usership' rather than 
ownership, we believe that the UK is following the US model, where around one 
third of commercial vehicles are rented. Our target market is a substantial one, 
with around three million UK users in total, 90% of whom currently purchase 
their vehicles. 
 
 
 
With the vehicle rental market already growing at 4% per annum, we are very 
positive about the future trading prospects in this sector. 
 
 
 
Potential Asset Finance 
 
 
 
We are pleased to report that the vehicle and asset finance brokerage division 
of Potential Asset Finance is now fully operational and that our national sales 
team continues to mature; we have developed a network of 15 strategically 
located business development managers throughout the UK, calling on motor 
dealers, equipment suppliers and direct business customers. Our dedicated online 
proposal management and quotation system recently went live and the initial 
market response to this facility has been extremely encouraging. 
 
 
 
New business volumes have been accelerated since the implementation of this 
unique and efficient front-end delivery process, which has also streamlined our 
back office proposal management function. 
 
 
 
Approval turnaround times have been dramatically reduced and record levels of 
new business applications are being received, with the result that hire purchase 
and loan advances placed have increased year on year by over 60%. March 2008 was 
a record month with over £1 million of brokerage business placed. 
 
 
 
In order to further capitalise on the effect of increasing consolidation in the 
banking sector particularly in the vehicle finance arena, we intend to implement 
a tele-sales strategy, based in our Brentwood offices which will focus on 
identifying additional opportunities for us in the motor dealer and commercial 
vehicle supplier markets. 
 
 
 
This is an exciting period for Potential Finance Group, and we will report more 
fully on an encouraging half-year result in due course. 
 
 
 
21 April 2008 
 
 
 
Enquiries: 
 
Potential Finance Group plc          01277 237 160 
 
Colin Swanston 
Managing Director 
 
Vivien Ware 
Finance Director 
 
Charles Stanley Securities 
(Nominated Adviser) 
 
Philip Davies / Carl Holmes           020 7149 6000 
 
 
 
 
 
 
 
 
                      This information is provided by RNS 
            The company news service from the London Stock Exchange 
END 
 
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