$9.4 million dividend

By Deborah Hill Cone

Friday 2nd April 2004

Hanover Group owners Mark Hotchin and Eric Watson have been paid a $9.4 million dividend from subsidiary Elders Finance for the six months to December last year.

The dividend tallies with Elders' after-tax profit for the period, $9.4 million, down slightly from $10.8 million for the corresponding period in 2002, although total revenue in the 2003 six-month period increased from $36 million to $42 million. Elders' loan book increased almost $100 million to $647 million from 12 months earlier, with the lending increasingly concentrated in Auckland.

Executive chairman Mr Hotchin said Elders continued to maintain strong liquidity with cash in the bank and liquid securities of $72.2 million at December 31 last year.

Cash and bank balances increased from $28 million in the 2002 period to $66 million.

Bad debts increased from $4000 in the six months to December 2002 to $812,000 and provision for doubtful debts increased from $602,000 in the 2002 period to $1.4 million in 2003. Impaired assets were estimated at $11.1 million, up from $4.4 million.

Related-party transactions increased from $66.6 million in the 2002 period to $78 million. The biggest related-party transaction was $28.4 million to associated company Hanover Financial Services.

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