Strategic Finance posts $25.5m annual profit

Privately owned property financier Strategic Finance yesterday reported a 35 per cent increase in June-year net profit to $25.5 million.

Net cashflow from operations increased 45 per cent to $25.6 million.

Chief executive Jock Hobbs, who is also the New Zealand Rugby Union chairman, said the company had experienced continued growth in core property finance operations.

Non-property lending - primarily for motor vehicles - performed well, while fee income from advisory and management services to the property and corporate sectors contributed strongly to profit growth.

Hobbs said Strategic's standing in the non-bank finance sector continued to grow and the ability to attract borrowers and investors was reflected by significant increases in total assets and liabilities.

Strategic's assets increased 24 per cent to $397.3 million. Liabilities, being predominantly depositors' funds, grew 24 per cent to $67 million.

Shareholders' funds rose 24 per cent to $57.6 million. Strategic said its gearing ratio of 14.03 per cent remained well above the finance company sector average of 8.26 per cent.

During the year, only $73,922 of debt was written off.

- NZPA