PROFITS before tax rose by 19 per cent at Woodchester Investments to £36.4 million for 1995.

After restructuring and rationalisation in recent years, profits at the financial services group are now back to the levels enjoyed in 1991-1992. However, the underlying result from core operations is stronger when the impact of the fall in interest income from surplus' funds is taken into account.

Earnings per share rose by 14.5 per cent to 13p, although these are still below the to.lp per share generated in 1991. The final dividend has been increased by 15 per cent to 4.08p per share with a similar increase in the total 1995 dividend of 6.83p per share.

Organic business growth, lower bad debt provisions and contributions from acquisitions, boosted profits in 1995 Income from fees and commissions increased to £3.3 million from £500,000.

After a 17 per cent rise in the first half, profits for the year increased by 19 per cent, indicating, an improving trend through the year.

A £3.4 million fall in the bad debt charge for the year to £8.2 million boosted profits. In healthier economic conditions and with tight credit controls, non performing loans fell to £41.1 million or 3.3 per cent of lease and installment credit loans from £50.4 million or 4.7 per cent of loans.

While the end 1995 total provision of £29.4 million was down from £35.1 million, cover was up to 72 per cent of non performing loans from 70 per cent.

The Irish market generated 45 per cent of group pre tax profits. Profits in Ireland rose by 24 per cent to £16.4 million.

Woodchester has reported strong growth in new motor business and agricultural equipment, finance. The corporate banking division, including the Gandon rate risk management and structured finance operation acquired in July 1995, and the insurance broking subsidiary performed well.

New business advances in the Irish market brew £332 million for 1995 with an average interest margin of 4.8 per cent. The bad debt charge on the Irish operations was down to £2.5 million from £3.3 million in 1994.

Operations in Britain accounted for 45 per cent of group profits, with a 34 per cent increase to £16.5 million. Profits were boosted by a £3.1 million reduction in the bad debt charge to £5.2 million.

The Anglo small equipment leasing operation acquired in April 1995 for £62 million sterling performed ahead of expectations, according to the chairman and chief executive, Mr Craig McKinney. Its contribution to profits was marginal in 1995 but, with interest and overhead savings, its annual contribution is expected to be about £15 million", within two years.

Motor leasing volumes increased by 8 per cent, margins increased and arrears improved, he said. Woodchester advanced gross new loans of £440 million in Britain in 1995 at an average interest margin of 4.6 per cent. Costs were reduced by centralising all motor finance, back office administration at Peterborough, he said.

The fledgling operations in Denmark, acquired in 1993, accounted for £900,000 of group pre tax profits. Business volumes have increased from £12 million in 1993 to £100 million in 1995, mainly in motor finance. After gross new loans of £74 million in 1995 at an average margin of 4.6 per cent, this operation is expected to expand strongly in 1996.

The Portuguese motor and equipment finance operations acquired in late 1994 from Credit Lyonnais generated profits of £1.5 million in 1995. New loans of £30 million were advanced at an average margin of 5.2 per cent. Following further acquisition earlier this year, Woodchester's now has a Portuguese portfolio of £150 million.

At year end Woodchester had total assets of £2,156 million, which included a 26 per cent rise in total loans to customers to £1,833.5 million.