Pyne Gould net profit hits $22m

Pyne Gould Corporation chief executive Jeff Greenslade. Photo / Dean Purcell

After reporting a loss when it wrote down the property development book of finance arm Marac a year ago, Pyne Gould Corporation has announced a net profit of $22 million for the latest year.

The turnaround from the $54.4 million loss a year ago followed recapitalisation of Pyne Gould, the company said yesterday.

Pyne Gould chairman Bruce Irvine said that after the recapitalisation rose $272.5 million, the company rebuilt its business with a clear focus on its core strengths - the provision of finance through both Marac and the Perpetual Group.

"While legacy issues do remain through an exposure to property development, these are being progressively dealt with through a managed exit process," Mr Irvine said.

Marac Finance provided $14.3 million of net profit from operations in the year to June, with $4.5 million from Perpetual Group, while $3.9 million came from PGC's shareholding in PGG Wrightson. Total impairments were more than twice as much as expected at $31.8 million.

- NZPA