GE CAPITAL’S Irish finance and leasing arm lost €12.5 million last year, its latest accounts show.

GE Capital Woodchester Finance, which provided car finance, lease, loan and instalment credit, saw its income halve last year to €32 million from €61 million.

Its figures show losses at the business fell by two-thirds to €12.5 million in 2010 from €51.5 million the previous year. The reduction was largely down to a fall in the company’s costs.

Its interest charges halved to €11 million. At the same time, its administrative expenses fell by €8 million to €14.3 million, and bad debt provision was down to €22 million, from €72 million.

The company’s balance sheet deteriorated during the year, ending 2010 with shareholders’ funds almost €82 million in the red. A year earlier the shortfall was €69.3 million.

Similar to GE’s Irish home loans business, the finance and leasing company’s biggest liability – €670 million – came under the heading of amounts due to other group entities.

The finance company stopped issuing new loans in 2008, and its current activities are focused on collecting funds due to it.

Directors Ciarán Barr and Chris Helme point out in their report that the company’s results throw a question mark over its ability to continue as a going concern.

They say its multinational parent, General Electric, is committed to providing the support necessary to continue trading in the Republic. The company said it was committed to maintaining its operations here.

Its Irish parent is GE Capital Woodchester Investments.