KEY POINTS:
Property-based funds management and finance company St Laurence has announced a net surplus for the year to the end of March of $12 million, down from $14.1m the previous year.
The company today said it had also recently seen a drop-off in reinvestment and new deposit levels, and other funding sources were being explored.
Despite the recent drop-off, the company's debenture funding base had grown over the year.
In a challenging environment, secured debenture stock on issue grew slightly from $250.4m at the end of March 2007 to $253.1m as at March 31, 2008, the company said.
Reinvestment rates for the second six months of the year averaged 34 per cent, with reinvestments and new money combined averaging 60 per cent of the amount that had matured during the period.
Managing director Kevin Podmore said the economy had slowed across Australasia, with the impact on the Australian property market being more negative so far than on the New Zealand market.
While overall market conditions were expected to remain tight for the next year, St Laurence expected it would continue to prosper, Mr Podmore said.
The result demonstrated the strength of the company's diversified funds management and finance business model, with investors backed by strong levels of shareholder equity.
St Laurence had reviewed its entire lending portfolio and had taken additional provisions against individual loans as necessary.
The company said the gross value of the loans outstanding at the end of March was around $175m.
While the company had allowed for the impairment of $19.3m of the gross amount, it continued to work towards recovering the full amount.
Shareholder equity in St Laurence increased by 17 per cent to $63.6m at the end of March 2008, from $54.3m a year earlier, and included a shareholder contribution of $4.8m, the company said.
Total assets increased to $340.1m from $329m, with liabilities remaining relatively stable at $276.5m. The St Laurence group held $28.6m in cash at March 31.
St Laurence said it recorded a 54 per cent increase in operating income from financing and funds management activities of $30.3m, up from $19.6m.
Equity earnings from investments contributed a further $12.3m, up on the $4.6m recorded in the previous period.
- NZPA
