LBS posts record profit, plans expansion

Ashburton-based Loan and Building Society (LBS) today reported a 25 per cent rise in half year net profit and announced plans to expand into north Canterbury.

The company, which is listed on the sharemarket's alternative exchange, today reported a $512,964 profit for the half year to September, up 25 per cent on the same time last year.

Revenue was $125,000, up from $102,000.

A fully imputed interim dividend of 7.5c per share was declared.

LBS general manager John Moore said he was confident a total full year dividend of 15c per share could be achieved.

LBS plans a $3.96 million share issue next month to help fund a new branch in Rangiora, North Canterbury, which will open next year. The record date for the rights issue is November and the closing date is December 9.

"To ensure a solid platform for growth in the next three to four years, we are seeking to raise capital with a renounceable issue of one million shares at $3.96 each, a discount on the current share price," Mr Moore said.

LBS currently has three million shares on issue, which last traded at $4.60.

Mr Moore said business opportunities in north Canterbury were comparable to LBS' home ground in mid-Canterbury.

LBS listed on the NZAX in 2003. Since then its asset base has grown from $102m to $146m.

Mr Moore said although mortgage demand is expected to flatten out next year, LBS was confident of attracting good quality farming, commercial and residential mortgages across its wider catchment.

- NZPA