Old-timer comes up with record result

Old-time finance company South Canterbury Finance - rumoured to be headed for the sharemarket - hit a record net profit of $26.5 million for the year to June.

The result was $5.8 million up on the previous year and total assets topped $1 billion for the first time in its 80-year history.

Shareholders equity closed at $105.7 million and bad debts were 0.5 per cent of total advances - down from 0.6 per cent a year earlier.

Chief executive Lachie McLeod said the result was "outstanding" and, despite the slower lending market, predicted another solid result in the year ahead.

The first quarter had already produced strong results. Its regional finance subsidiaries were "cherry picking" business and consumer opportunities in their provinces and there were plans for more offices.

South Canterbury Finance has operated since 1926 and its main shareholder, Allan Hubbard, still owns 99 per cent of the company.

Last month, Hubbard was reportedly readying the company for a sharemarket listing this year.

The possible float would likely value SCF at $200 million, making it one of the richest sharemarket offerings of the second half.

On the up and up

* The 80-year-old South Canterbury Finance's total assets have topped $1 billion for the first time.

* Its profit of $26.5 million for the year to June was a record.

* Regional finance subsidiaries are cherry-picking the best opportunities in their provinces.

* The national network will be expanded with five new offices next year.