New Zealand's largest privately owned finance company, Hanover Finance, has posted a 20 per cent rise in after-tax interim profit despite what it describes as significant challenges.
The company - jointly owned by multimillionaires Mark Hotchin and Eric Watson - reported net profit of $20.9 million for the
half year to 31 December.
Hanover said combined pre-tax profit for the four finance companies in the Hanover Group - Hanover Finance, United Finance, Nationwide Finance and FAI Finance - was $36.7 million, up 28 per cent on the prior year.
"This included particularly strong performances by both Hanover Finance and United Finance."
Chairman Greg Muir said the overall result for Hanover's finance companies demonstrated the strength and quality of the organisation.
"To achieve significantly improved profit performance at a time when investor confidence was impacted by the collapses of 2006 and when others appear to be struggling is very pleasing."
Muir said the companies recorded a 5 per cent fall in total assets as the lending market tightened during 2006.
He said reinvestment rates by debenture holders were currently running at around 80 per cent and new investment flow was also good.
"The group has also put in place $200 million of banking lines to diversify its funding base, further strengthening liquidity."
In January Hanover confirmed it was planning to sell or possibly float off about $250 million of property.
The company had about $550 million of commercial and residential property.
- NZPA
