Avon Investments posts $743,000 profit

Alternative market listed mortgage lender Avon Investments today announced a $743,000 March year profit -- up from $266,000 the previous year.

The company, which listed on the NZAX in early April -- said its total operating revenue was $9.22m.

Avon chairman Barney Sundstrum said the company had expanded considerably during the period, with assets growing from $36.8 million to $76.7 million.

Avon's principal subsidiary, Propertyfinance Securities Ltd, is a specialist non-bank mortgage lender which began offering first mortgages in November last year.

Propertyfinance launched its specialist commercial property lending product PrimeFirst shortly after Avon listed and it has also invested heavily in marketing its Lifestyle Security reverse mortgage product.

Mr Sundstrum described PrimeFirst's prospects as "exciting" while Lifestyle Security was beginning to grow slowly consistent with overseas trends.

"Our aging population and the illiquity of most people's prime asset -- their home - is creating a growing need for people to unlock some of this value for their quality of life," Mr Sundstrum said.

The other cornerstone of Propertyfinance Securities is Headstart, a no deposit first mortgage for couples purchasing residential homes.

Mr Sundstrum said the outlook was for "continued strong increase in growth and profitability".

Avon Investment shares were unchanged at $1 this afternoon.

- NZPA