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Geneva Finance lifts first-half profit 56%

NZ Newswire logoNZ Newswire 14/12/2016 Paul McBeth

Geneva Finance, which paid a maiden dividend earlier this year, lifted first-half profit 56 per cent on credit growth in its lending business and higher premium income from its insurance business.

Net profit rose to $2.4 million, or 3.35 cents per share, in the six months ended Sept. 30 from $1.5m, or 2.18 cents, a year earlier, the Auckland-based company said.

Net interest income climbed 49 per cent to $3.8m on a 13 per cent increase in lending growth, while insurance premium revenue more than doubled to $1.2m with claims rising to $308,000 from $98,000 a year earlier.

"Delivering a $2.4m profit for the six months is satisfying, but there remains much to do," the company said.

"With the core business now established, the key focus is on the use of technology to improve customer service levels and support the expansion of the group's lending and insurance and collections services."

The finance company was one of the few to survive its moratorium, repaying $169m, including $42m of interest, as it slashed staff numbers and closed operations.

It has generated a profit in the past two financial years and undertook a seven-for-one share consolidation earlier this year in an effort to lift the share price, which last traded on the NZAX at 46 cents.

Managing director David O'Connell said the firm was still looking for the "right acquisition opportunity" due to its conservative levels of debt. The firm had drawn $44.5m from its term facilities at the balance date, with $4.9m owed to professional investors, including two directors.

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