South Canterbury Finance sees "excellent" lending prospects ahead after describing a $4 million operating profit last quarter as a turning point for the company.The unaudited operating profit included a positive net interest margin of $1.4 milli
South Canterbury Finance sees "excellent" lending prospects ahead after describing a $4 million operating profit last quarter as a turning point for the company.
The unaudited operating profit included a positive net interest margin of $1.4 million.
After deducting one-off expenses for investment losses of $3 million, impairment losses of $3 million and foreign exchange losses of $500,000, the net loss was $1.2 million for the three months to March 31.
South Canterbury posted a $198.6 million net loss after tax for the six months to December last year and this latest trading result represented a turning point after the losses recorded over the previous 18 months, said chief executive Sandy Maier.
"This is a heartening outcome with many positive aspects for the future of the business."
The company's cash position has steadily improved through loan repayments and non-core asset realisations and it now had $80 million in the bank.
Realisations of past due and non-core assets have generated $202 million in cash since January this year.
Lending conditions improving
Mr Maier said the company saw an improved lending environment in the coming months.
"Trading conditions are becoming more favourable with improvements in the current economic environment bringing forward excellent prospective lending opportunities in the business and consumer sectors."
The unaudited trading result for the March quarter excludes contributions from Helicopters NZ and 80 percent owned Scales Corporation both of which were bought on February 28.
"As the core finance business continues to improve, we expect that the consolidation of the results of Helicopters NZ and Scales Corporation will deliver a significant improvement in the overall financial performance," Mr Maier said.
South Canterbury Finance's unaudited total assets were $2.1 billion at March 31 and equity was $203m.
Equity will increase by $37.5 million after Torchlight Fund No 1 LP, the Pyne Gould Corporation-owned property funds manager, confirmed yesterday it will invest another $15.5 million in South Canterbury Finance on top of $22 million it had already committed.
