Press Release

FLA ASSET FINANCE STATISTICS

FLA (Finance & Leasing Association) today released figures for the asset finance industry for the second quarter of 2006.

Overview

·         Second quarter results for the asset finance industry indicated weaker growth in new business, although the timing of Easter this year will have had an impact.  In the first six months of 2006 new business rose by 8%.

·         Finance for plant, machinery and equipment grew by 3% in the second quarter but was up 12% in the six-month period ended June 2006.

·          Leasing, both finance and operating leasing contracted in the second quarter.  In the first half of 2006 both finance leasing and hire purchase grew by 7% and 11% respectively compared with the same period in 2005.

Industry comment

Commenting on the latest figures, Geraldine Kilkelly, FLA’s Head of Research, said:

“Results for the first half of 2006 indicate that the asset finance industry continues to be an important source of funding for businesses.  The latest figures suggest across the board growth with businesses spending on both fixed and mobile capital goods.”

New business (£m) (Excluding high value)	3 months ended  June 2006	Year-on year % change	6 months ended  June 2006	Year-on year % change
By asset financed: New cars Used cars Commercial vehicles Plant, machinery and equipment Property and other Total   By product: Finance leasing Operating leasing Hire purchase Other finance Total	1,505 217 1,101 1,774 404 5,001     898 1,034 2,348 721 5,001	-1% 23% 3% 3% 5% 3%     -2% -9% 3% 31% 3%	3,202 403 2,016 3,714 855 10,190     1,987 2,235 4,782 1,186 10,190	6% 20% 2% 12% 10% 8%     7% -1% 11% 20% 8%