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Listed finance company Strategic Finance has downgraded its profit forecast by $2.9 million on concerns about pressure on both the local and international financial markets.
Strategic, which is owned by Australian investment company Allco HIT, had previously forecast a profit of $31.1 million for the year ending June 30, but yesterday dropped its projection to $28.2 million.
"The directors recognise that the business and economic environment has adversely changed," the company said.
Strategic recently announced a half-year after-tax profit of $14.6 million for the six months ending December 31, up from $12.05 million in the previous year.
Its total assets grew 13 per cent from the same period last year, to $656.9 million, including $101.79 million available in cash, while total liabilities - predominantly depositors' funds - were up 5 per cent to $540.5 million.
Strategic's profit downgrade follows that of fellow listed finance company Dorchester Pacific, which on Friday said it's 2008 profit guidance had almost halved from $6 million to between $3 million and $4 million.
Dorchester said its lower forecast was a result of reduced lending volume, a reduction in loan-fee income and increased provisioning in Dorchester Finance.
Dorchester holds $33 million in cash or cash equivalents.
Strategic's shares closed flat on 60c yesterday, while Dorchester was down 3c to close on 79c.
