Mike Pero reports 12.5pc fall in profit

Mike Pero Mortgages today reported a 12 per cent fall in net profit to $1.41 million in the nine months to March 31.

The result is a classified as a full year result as the company is changing its balance date to March 31 from June 30 to match its new major shareholder New Zealand Finance Holdings.

The mortgage broker's third quarter net profit was $461,536. It had after earlier reporting a half year net profit of $952,231.

The company reported a final, fully imputed dividend of 1c per share. The directors said the lower dividend reflected the company's desire to reinvest profits.

The profit was on steady revenue of $13.5m.

Earnings before interest, taxation and depreciation fell to $2.34m from $2.33m.

Chief executive Jeff Staniland said that the company had performed well. He said that on an annualised basis the last quarter result would imply earnings of $1.9m compared to $1.6m in 2005.

The implied result was consistent with the forecast made to the market in December, he said.

The number of franchisees operated by the company increased by three to 44 while the total number of mortgage brokers increased by six to 57.

The company's re-launched Mike Pero Insurances operations had seen risk insurance rise 70 per cent.

After paying the final and interim dividend of 3 cents per share, the company's net cash position increased slightly from last balance date to $313,581.

Mike Pero shares last traded at $1.03. They have traded between 55c and $1.07 in the past 12 months.

- NZPA