Sharechat Logo

South Canterbury skirts meltdown, lifts profit

Monday 25th August 2008

Text too small?
South Canterbury Finance Group posted a 75% gain in annual profit after selling a stake in a dairy farm investor and benefiting from the demise of rival finance companies.

Profit rose to $82.7 million in the 12 months ended June 30, including a $40 million gain from the sale of the company's 13% stake of Dairy Holdings, it said in a statement today.

South Canterbury, which a BBB- credit rating, had a reinvestment rate of 63.7% last year as it weathered a slump in finance company liquidity that caused more than 20 rivals to fail or suspend payments. Pretax earnings may fall 43% this year to NZ$47 million, it said today.

Market conditions "remain difficult," said chief executive Lachie McLeod. Still, "we are enjoying the strongest inflows of new investment funds" for two years, he said.

The company has some NZ$400 million in cash and undrawn banking lines and expects to retain "strong cash reserves" in the current year, he said.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

Greenfern Industries Limited (NZX: GFI) Releases Interim Results
Hallenstein Glasson Holdings Limited (NZX: HLG) Announcement of Final Dividend
26th November 2021 Morning Report
EROAD Limited (NZX: ERD) Accelerates Towards Next Phase of Growth
Stride Property Ltd & Stride Investment Management Ltd (NZ: SPG) Placement Size Increased Following Strong Demand
General Capital Limited (NZX: GEN) Announces Very Strong Growth
25th November 2021 Morning Report
Gentrack Group Limited (NZ: GTK) Annual Results for the Year Ended 30 September 2021
Pacific Edge Limited (NZX: PEB) Results for Six Months Ended 30 September 2021