Sharechat Logo

Geneva Finance Limited (NZX: GFL) March 2021 Pre-tax Profit Forecast +56% on Previous Year

Monday 15th March 2021

Text too small?

Geneva Finance Limited now expects FY21 net profit before tax (NPBT) to be within a range of $6.3 million to $6.5 million (up 56% on last financial year), with trading results since September 2020 exceeding expectations across the consumer finance (New Zealand and Tonga), insurance, invoice factoring and debt collections business units.

Managing Director David O’Connell said, “While we were pleased with the September 2020 half-year result (NPBT +44% on previous year), and had reservations regarding the recurring risk of further lockdowns, the hard work from the management team has seen continued improvements across every business unit.”

Each of the business units contributed to the profit increase, though the finance operations (invoice factoring and consumer finance) and Quest Insurance provided the majority of the uplift. New lending volumes are tracking well ahead of last year. The traditional seasonal spike in finance arrears has also been lower than previous years, reflecting continued improvements in ledger quality. The debt collections and debt litigation business are similarly showing consistent improvements.

In light of the improved trading position, the directors are of the view that the final dividend for the March 2021 year should be restored to 2.25 cents per share. This dividend was reduced from 2.25cps to 1.75cps following the March 2020 lockdown. The updated FY21 NPBT guidance implies that the indicative full-year dividend of around 3.50cps equates to a dividend pay-out rate of approximately 35% - 40% of NPBT, which the directors consider appropriate in the current environment.

Please see the link below for details:

Geneva Finance NZAX profit guidance media release March 2021

Source: Geneva Finance Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZME Limited (NZX: NZM) NZ Markets Disciplinary Tribunal Censures
Rua Bioscience Limited (NZX: RUA) Announces CCO with Global Pharma Experience
Cannasouth Limited (NZX: CBD) Supply Activity Added to Cannasouth Commercial Licence
Skellerup Holdings Limited (NZX: SKL) Upgrades FY21 Earnings Guidance
Napier Port Holdings Limited (NZX: NPH) 2021 Earnings Guidance Update
Comvita Limited (NZX: CVT) Full Year Guidance Update
Scott Technology Limited (NZX: SCT) Meat Industry Contract Win
PaySauce Limited (NZX: PYS) Quarterly Market Update
NZ Windfarms Limited (NZX: NWF) Agrees a New VVFPA for Q1 2022 to Q3 2022
Harmoney Corp Limited (NZX: HMY) 3Q21 Trading Update