Mike Pero Mortgages keeps growing

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Mike Pero Mortgages, New Zealand's largest mortgage broking firm, has continued to grow in the face of a slowing economy and falling housing market.

Thursday, April 20th 2006, 10:16PM

The company yesterday reported a net profit of $1.41 million for the nine months to March 31 which is 12.5% lower than the same period last year. Also it has cut its final dividend to 1 cent a share.

However this is a nine-month reporting period compared to a 12-month period last year.

Chief executive Jeff Staniland said that on an annualised basis this result would imply earnings of $1.9 million compared to the full year result to June 2005 of $1.6 million giving an 18% increase in earnings.

"Mike Pero Mortgages has continued to demonstrate growth even in the face of a slowing economy and housing market."

During the period its brokers had arranged $1.2 billion of mortgages. The number of franchisees increased by three to 44 while the total number of mortgage brokers increased by six to 57.

The company continued to increase its national coverage with a new franchise established in Timaru. Also it has started pushing its insurance business.

"The company has continued to grow despite a slowdown in the economy and housing market. While the future of the economy is uncertain and these external factors may act as a drag on growth, we believe there is still capacity for further growth from a number of facets of our business model," Staniland said.

Also George Gould has been replaced as chairman of the company by fellow director Abby Foote.

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