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Pyne Gould profit up

Monday 16th August 2010

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Pyne Gould has revised its earnings forecast for the financial year, saying net profit was about 5% higher despite increased impairments. The company's shares rose on the news.

Profit was $22 million for the year ending 30 June, up from $20.9 million previously, boosted by a $17 million surge in net operating income, the financial and rural services company said in a statement.

The improvement reflects strong operating performance from its core operating businesses, with solid contributions from Marac vehicle finance, Perpetual Asset Management, Torchlight, an alliance with the New Zealand Automobile Association and the purchase of GMAC NZ's retail motor vehicle finance book.

The company said the results will be offset by higher-than-expected asset impairment expenses of $17.5 million, largely relating to property assets which it is in the process of exiting.

The impairment expenses also included a one-off cost relating to an unauthorised $4.4 million loan earlier in the year.

Pyne Gould shares opened up 4.9% to 43 cents.

Final results for the year will be announced on August 26.

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