Pero outlines expansion plans

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Mike Pero Mortgages (MPM) says although the housing market slowed down over the winter months it is expecting a pick up this summer.

Thursday, November 4th 2004, 11:47AM

“We have seen a slowing of business over the winter months. While we expect a summer upswing it is unlikely to match the highs reached in 2003 but this should not preclude us from reaching our short term financial targets or implementing our long term growth initiatives,” chief executive Jeff Staniland told the annual meeting in Christchurch yesterday.

Staniland says MPM is expanding its number of franchisers and a key factor to growth is “getting more transactions per business owner.”

Currently there are 43 people in the business and brokers write, on average, 14 loans per month of an average size of $188,000.

He says they received upfront commission of around 0.6% and most of the loans they write also have trail fees.

MPM reckons it has 10% of the overall mortgage market and its aim is to “be the number one arranger of home loans in New Zealand.”

Staniland says the company is planning to do more work building its brand and it is in negotiation with various people to set up franchises in Wellington, Nelson and Wanganui.

“Analysis of our telephone enquiries indicates that our national brand reach should be further complemented by a greater physical presence throughout the country and we are actively looking for more regional franchisees.”

Staniland says MPM is also looking to growing its revenue by expanding into the insurance area and currently it is looking for risk advisers in Auckland and Christchurch and it is prepared to buy businesses “should the right opportunity present itself.”

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