Impact extends funding pot with building society deal

Short-term property lender Impact Bridging Solutions has agreed an additional £8m funding line with Manchester Building Society, the firm said in a Stock Exchange announcement.

The Impact Holdings subsidiary has opened a London office to complement its South Manchester base in Styal.

The trading update confirmed that Financial Services Authority permission had been granted to undertake regulated lending. Impact also announced the launch "of a unique in-house automated processing system called Salus which gives the company real competitive advantage when it comes to processing costs, speed and efficiency of transacting deals."

Impact Bridging's managing director, Stephen Ball, said: "Progress has been excellent since we commenced trading in April '07 with the business already showing year-to-date operational profitability and a solid reputation being formed with funders, brokers and clients.

Paul Davies, group chief executive, added: "The group is discussing a number of niche opportunities to complement its existing solicitor lending and property related funding operations and our strategy of providing a financial services group providing short term niche funding continues to evolve. The progress made in the property bridging division is an encouraging example of what we seek to achieve in the future across a number of niche sectors."

The share price was unchanged at 2.875p, putting the company's value at £3.26m.