The financing house, Conister, has issued an earnings warning to shareholders.

In a statement to the London Stock Exchange the Finch Road based company has acknowledged the current challenging conditions in the market.

The statement reads "The Board of Conister is aware of a prolonged and steady increase in the price of the Company's shares over several months. This no doubt reflects, at least to some extent, the opportunities that may be derived by the Company from the involvement of a new significant minority shareholder, together with the recruitment of Mr Jerry Linehan as Chief Executive of the Company with effect from 1 March 2006.

However, the Board feels duty bound to remind shareholders that the performance of the core businesses of the bank continues to be challenged by strong downward pressure on margins and lower than anticipated volumes due to intense competition and an uncertain economic outlook. This, coupled with the ongoing complexities of the litigation funding market, is expected to result in a significant reduction in earnings for the financial year to 31 December 2005 compared to the financial year to 31 December 2004.