Davenham Group plc

On 17 November 2005, Davenham published its admission document for a flotation on the Alternative Investment Market ("AIM") of the London Stock Exchange. Upon admission, Davenham had a market capitalisation of approximately £65mlion.

The placing comprised an offer of £44.6mlion, comprising 17.6 million ordinary shares at a price of 254 pence per share. Of this amount, 10.9mlion new shares were placed on behalf of Davenham raising approximately £27.7mlion and 6.7mlion existing shares were placed for approximately £16.9mlion on behalf of selling shareholders.

Approximately £17.2mlion of the proceeds of the issue of new shares were used to redeem loan notes and mezzanine debt. The balance of £10.5mlion will be used to increase the capital base of Davenham, further strengthening the Company's ability both to lend and to develop the business.

Davenham is a leading, independent asset based lender to the UK SME sector. The business was founded in 1991 in Manchester from where its core operations are run. In recent years, Davenham has begun to expand and it now also operates from offices in Leeds, Birmingham, Liverpool and Newcastle.

Davenham provides lending solutions designed to meet the financing needs of UK SMEs typically involving loans of between £10,000 and £3mlion. Davenham has a diverse loan portfolio, with its lending activities organised into three divisions: property finance, asset finance and trade finance.

Dunedin and Indigo originally backed the buyout of Davenham in 2000 and supported the company through to a successful flotation.

Canaccord Genuity are financial advisor and "nominated advisor" to Davenham Group plc going forward.