NZF Group's website: a new name, but what else is really different?
NZF Group's website: a new name, but what else is really different?
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NZF Group, formerly NZ Finance, has increased its reliance on bank funding as its debenture funding dropped to NZ$65.8 million from NZ$80.5 million a year ago.
The NZX-listed finance company has reported operating profit rose 9.8 per cent to NZ$6 million in the year to March 31 asit grew its lending more than 40 per cent.
NZF has NZ$200 million in bank funding from Westpac, NZ$60 million from Commonwealth Bank of Australia and NZ$3 million from ASB. NZF more than doubled its borrowings from banks in the last year, increasing its term loans to NZ$167.2 million from NZ$71.9 million a year ago.
NZF's total equity rose 14.9 per cent to NZ$24.3 million, but its gearing of lending to equity has risen to 10.6 from 8.4 in the last year.
Net profit fell to NZ$3.9 million from NZ$7.1 million in the previous year, which was boosted by a NZ$3.52 million profit from the sale of a stake in Mike Pero Mortgages.
NZF said it had one bad debt in the year of NZ$158,124, compared with no bad debts the previous year.
NZF's directors said they didn't expect the next year to be that much different from the current climate.
"We have always been a conservative finance company and taken the view we are here for a long time not a good time," NZF Chairman Richard Waddel said in a statement.
"We are probably the smallest finance company on the NZX and we have been selective and cautious about the areas we have invested in," Waddel said.
"As a result of our small size we are probably more nimble and able to respond to the changing environment finance companies are facing. The company has performed well in this difficult environment and we are confident that the decisions we have made will result in our continued success," Waddel said.
Further comment from NZF was not immediately available. NZF did not disclose its dividend reinvestment rate or its loan arrears.
