KEY POINTS:
The troubled finance sector is proving a happy hunting ground for NZX-listed Pyne Gould Corporation as half-year profits soar.
Managing director Brian Jolliffe said the company could cherry-pick transactions at the moment.
"So that's providing huge opportunity," Jolliffe said.
Net profit for the six months ending December 31 was $22.1 million, compared to $17.9m the previous year, on the back of revenue of $117 million up from $95 million.
World markets, international credit related issues and local finance company sector issues continued to provide challenging conditions, although full-year net profit was expected to be higher than last year, the company said.
Finance receivables at Pyne Gould-owned finance company Marac rose 11 per cent during the period to $1.5 billion, with net profit of $14 million.
New retail funding had slowed, although the re-investment rate had risen to just under 70 per cent recently, after falling to 60 per cent in September.
Diversified funding had been a core part of the strategy for many years, Jolliffe said.
"Being a diversified finance company for me means diversified both in lending and in funding."
The company was currently finalising a new syndicated facility with all of New Zealand's leading banks, he said.
"It will enable our growth aspirations for the rest of 2008 to continue."
Net operating profit at fully-owned Perpetual Trust was up 19 per cent at $1.8 million, while the contribution from part-owned PGG Wrightson was up 66 per cent at $7.5 million.
PYNE GOULD CORP
Six months ending December 31
Revenue
2007: $117m
2006: $95m
Net Profit
2007: $22.1m
2006: $17.9m
Dividend
2007: 10c
2006: 9c
