Hanover Group expects $100M annual profit, has big plans

By NZPA

Friday 18th March 2005

Hanover Financial Services Group, owned by expatriate Eric Watson and chairman Mark Hotchin, will this year make a profit "well in excess" of $100 million, National Business Review (NBR) reported today.

The company has big plans, including a possible stock exchange listing, NBR said.

Hotchin was quoted as saying Hanover aimed to grow its assets to $6 billion, with half in New Zealand and half in Australia.

He was on a plane to Australia and not immediately available to comment on the report.

Hotchin told the business weekly Hanover had identified one or two assets in New Zealand it would buy if they became available.

It was looking for companies with scale, not "heaps of smaller companies".

Hanover has been consolidating since buying FAI in 2002.

A sharemarket float was likely at some point although not currently on the radar screen, Hotchin said.

Hanover unit, Elders Finance in December reported a net profit of $22m for the June year, up from $19.6 million the previous year.

The hiring of former Credit Suisse investment banker Andrew Schmidt as general manager of strategy and finance signalled a new phase for Hanover, Hotchin said.

Schmidt would provide expertise in acquisitions, integration and capital restructuring, he said.

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