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Heartland expects net profit of $6m-$8m


Tuesday 2nd August 2011

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Financial services group Heartland New Zealand is expecting net profit in line with guidance of $6 million-$8 million in the financial year that ended on June 30.

The company -- formed by the $2.2 billion merger in January of Marac, CBS Canterbury and Southern Cross Building Society -- said the annual result would be announced by August 19.

The result would include substantial one-off costs associated with the merger and with investment in new infrastructure aimed at meeting bank standards and for expansion in distribution channels. The forecast was subject to finalisation of the year end accounts and audit, Heartland said today.

The company is intending to buy PGG Wrightson Finance, and said forecast net profit in the 2012 year, after the intended acquisition, was expected to be in a range from $20m to $24m.

Heartland is also setting up an employee share plan, and said it intended to make a cash settlement of $1m to a subsidiary acting as a trustee so it could buy shares under the plan.

The trustee would not buy Heartland shares during the pricing period of a recently announced $35m share purchase plan. Heartland group directors and senior executives would not take part in the employee share plan, Heartland said.

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