PGG Wrightson Finance up

Photo / Sarah Ivey

PGG Wrightson Finance has posted an increase in profit even though loan impairments rose.

The finance company unit of PGG Wrightson said its net profit after tax of $8.9 million in the year to June 30 was up from $7.8 million last year. Operating earnings before tax of $13.1 million compared with $10.1 million in 2009.

Chief executive Mark Darrow said that while loan impairments for the year had increased to $8.9 million primarily as a result of several dairy sector exposures, the company had continued to limit dairy exposure to around 25 per cent of its portfolio. This compared to an industry average of more than 60 per cent.

Total loans and receivables decreased by 5 per cent to $530.9 million.

- NZPA