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New Zealand Finance said yesterday it was in good health despite the carnage that has affected the finance company sector. Although its September year net profit fell 57 per cent to $2.4 million, that was largely because of last year's profit being boosted by a $3.5 million one-off gain from the sale of shares in Mike Pero to its joint venture partner Liberty Financial. Revenue from ordinary activities fell 2.6 per cent to $20.9 million. A fully imputed interim dividend of 1c a share will be paid, up from 0.75c last year.
NZF shares have dropped from $1.52 a year ago to 80c yesterday, but recovered 5c, or 6.25 per cent, to 85c yesterday.Total assets increased 34 per cent since March 31 and 57 per cent from a year ago to $267 million. Operating surplus after taxation rose by 30 per cent to $2.6 million. NZF increased its funding from Westpac by $50 million to $200 million and secured a $40 million facility from the Commonwealth Bank of Australia.
Managing director John Callaghan said NZF was fortunate to have multiple funding lines in place with banks.
"It helps that we have a diversified model, so in that regard, we are not a traditional finance company. We have a manufacturing and distribution model which means we are able to diversify our income stream."
- NZPA
