PGC back in black

Pyne Gould Corporation returned to profitability, with a net profit of $10.1 million in the six months to December after a $17 million loss a year earlier when the result was affected by several one-off items.

The Marac Finance business reported a net profit before tax for the six months to December of $8.2 million, after including a one-off $3.3 million pre-tax provision for a previously announced loan irregularity, Pyne Gould said yesterday.

Rural services company PGG Wrightson, which reported a $4.1 million net profit yesterday and in which Pyne Gould holds an 18.3 per cent stake, contributed $400,000 to the Pyne Gould result.

A further contribution of $3.7 million came from Perpetual Group.

During the half year, Pyne Gould raised $272.5 million in new capital from existing and new shareholders to strengthen its balance sheet.

Pyne Gould said Marac's consumer business lending on vehicles continued to perform strongly.

- NZPA