South Canterbury grows debentures by $220m
South Canterbury Finance has increased assets to more than $1.5 billion after a strong first half to December 31, recording a 39% increase in net profit before tax compared to the same period last year.
Thursday, March 1st 2007, 11:20PM
“We are very comfortable with the current trading climate. Even though the market has now flattened out, we are on target to achieve a full year NPBT of $45 million, an increase of $5.7 million on last year’s $39.3 million.”
He says total assets were up 28% to $1.5 billion and that lloan and leasing receivables were up 34% to $1.24 billion.
South Canterbury recorded net profit after tax of $17.7 million.
Bad debt write offs and provision sit at 0.045% of total receivables while the debenture book grew $220 million or 20% with an average retention rate of 80%.
Equity increased by 70% to $197 million. McLeod said the increase in equity was a milestone for the industry.
“We issued $65 million in the six months to December 31 with the majority of our existing Perpetual Preference Shareholders converting to the new Perpetual Preference Shares issued in November.”
“The growth in the debenture book of $220 million over the same time last year was testament to the confidence investors have in our business coupled with a very strong financial intermediary network. This is despite difficulties many finance companies had in attracting new funding”.
He says another big achievement was being assigned an investment grade rating by Standard & Poor’s in December.
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