Property lending focus working

Focusing on its core business of specialty property lending has boosted Bridgecorp's interim profit by more than 175 per cent and managing director Rod Petricevic is optimistic about the balance of the financial year.

Without going as far as to forecast full-year profit, he said he was comfortable with operations and pleased with the company's progress.

"We've just been focusing on our core business and there's been some opportunities out there which we've maximised during the year. We're delighted with the way it's going and it's looking good for the balance of the year," Petricevic said.

"Like many others, we've had opportunities to get involved in other types of finance but we consider ourselves to be a specialist with particular skills. We're happy lending on bricks and mortar as opposed to cars and refrigerators."

Petricevic said there could be opportunities for expanding Bridgecorp's holding in Dorchester and confirmed the company's interesting in listing on the stock exchange if the timing and conditions were right.

"It's something we have under constant review," he said.

Bridgecorp reported an operating profit of $11 million for the six months to December 31. This is an increase of 156 per cent on the previous corresponding period. After-tax profit was $7.3 million, up 176 per cent from the previous $2.7 million.

Lending activities earned revenues of $43.2 million from interest and fees, up 18.6 per cent.

Interest paid to investors during the period was $21.4 million.

Total assets were $529.8 million, up $7 million, and total liabilities were steady at $455.9 million.

Shareholders funds at December 31 were $73.9 million.

Petricevic said the results reflected continuing strong growth for the company.

"The company's enjoyed significant success in recent years, much of it based on confident investor support. We're on track for another strong year in 2005, maintaining quality lending opportunities on a stable investment base."

Funds raised are used for property lending, with the loans generally secured by mortgage over real estate and, in many cases, repayment is further protected by insurance from Lloyd's of London.