KEY POINTS:
PGG Wrightson Finance is growing its funding base with strong investor support in a sector reeling from company failures.
The company yesterday said it had lifted its term deposits by a net 25 per cent to $173 million in the year ending June 30, including a rise of more than $30 million in total retail funding.
The increase was underpinned by a high reinvestment rate of 80 per cent during the period, the companysaid.
Group general manager financial services Michael Thomas said PGG Wrightson Finance - a fully owned subsidiary of listed rural services company PGG Wrightson - had investor support because of a clear differentiation.
"Investing in secured lending for farming purposes is a strong proposition, with the rural economy generally well positioned for future performance," he said. "This is in contrast with the conditions that many other finance businesses are facing."
The company's reinvestment rate had been about 80 per cent or in the low 80s for a number of years, compared with a wider industry range of below 70-75 per cent.
More than 80 per cent of loanswere secured by the land, Thomas said. PGG Wrightson shares closed unchanged yesterday at $2.55.
