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Record year for Hanover Finance

Monday 2nd July 2007

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Hanover Group has announced a record $60.4 million unaudited net profit before tax for flagship company Hanover Finance for the year to 30 June 2007, up 5.4% from $57.3 million on the previous financial year. United Finance also had a record year, with $13.6 million unaudited net profit before tax, up 106% from $6.6 million previously.

Hanover Group chief executive Sam Stubbs says the strong profit performance for the Group's two major debenture-issuing companies is a result of active management of loan book quality.

"These are very strong results. We lend across a very broad property portfolio, diversified by type and geography to maximise returns and offer spread of risk. We continue to focus the loan book on high quality assets. We have diversified earnings across a range of property classes and have liquidity in excess of $200 million across the Group's finance companies''.

Hanover is one of New Zealand's largest financial services and property specialists, and its principal finance company, Hanover Finance, has an international credit rating of BB+ from Fitch Ratings.

Chairman Greg Muir said the Group continued to advocate minimum capital adequacy levels and mandatory international credit ratings for all companies operating in the non-bank financial services sector.

"Ratings from one of the big three ratings agencies - Fitch, Standard & Poor's and Moody's - are absolutely fundamental in giving New Zealanders the ability to invest with confidence and peace of mind," he says.

Director Mark Hotchin commented that the future of Hanover lay in sticking to a winning formula and expanding carefully into funds management. "For 20 years we have delivered consistently good returns to investors by focusing on our specialist expertise in financial services and property. We will continue to do so, as well as leveraging additional core skills in property related funds management," he says.

Privately owned finance company Hanover Finance posted a 5.4% rise in unaudited pre-tax profit to a record $60.4 million.

Fellow Hanover Group stablemate United Finance also posted a record pre-tax profit of $13.6 million, up 106%, for the year ended June.

"We lend across a very broad property portfolio, diversified by type and geography to maximise returns and offer spread of risk," Hanover Group chief executive Sam Stubbs said.

"We continue to focus the loan book on high quality assets."

Audited results are expected in August.

The company is jointly owned by multi-millionaires Mark Hotchin and Eric Watson.

Hanover also owns FAI Finance.

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