Niche lender Impact Capital has cut its losses on an underperforming UK investment and will focus on its core Australasian operations.The company announced yesterday that it had sold its shares in Impact Holdings UK for  $1.26 million, which would result in a loss of $340,000. Settlement has been deferred until December next year.In a statement Impact managing director Russell Templeton said the UK business had become an "unhelpful management distraction".Impact lends against contingent assets - benefits likely to flow from personal injury claims, matrimonial settlements and inheritances. It also offers a line of credit to litigants.The UK investment dragged the company into loss last year. For the 2006/07 financial year Impact made a loss of $296,000 after it wrote down $2.4 million on the value of Impact Holdings UK.Profit excluding the impairment was $2.9 million, up from a profit of $100,000 in 2006.When the company announced its December half results it reported that it had refinanced during the half, securing a $50.5 million facility with BankWest.The loan book stood at $56 million. Templeton said he was aiming to grow the book to $100 million by 2009.