GFL
14/12/2015 10:57
GENERAL
NOT PRICE SENSITIVE
REL: 1057 HRS GFNZ Group Limited
GENERAL: GFL: GFNZ Group Media Release Sep 15 Results
GFNZ Group Limited
HEAD OFFICE
6b Pacific Rise, Mt Wellington
P) 0800 800 133
Media Release 14 December 2015
GENEVA FINANCE ANNOUNCES HALF-YEAR RESULTS:
AFTER-TAX PROFIT UP 423% ON 2014
GFNZ Group (Geneva Finance) has announced an after-tax profit of $1.5 million
for the six months to 30 September 2015, an increase of 423% on the same
period in 2014. Revenue from ordinary activities was $5.7 million, a 31%
increase on 2014, while operating costs were highly controlled and up only 9%
on a year earlier. The company's shares are traded on the NZAX, and the
latest results have produced a basic profit of 0.639 cents per share for the
12 months to 30 September 2015.
Geneva Finance managing director David O'Connell says, "The revenue increase
is primarily attributable to our lending business, Geneva Financial Services
(GFSL), which delivered growth of more than 40% above last year. The increase
in operating costs, $0.3m more than in 2014, is largely attributable to this
rise in lending volumes."
Furthermore, over the last 12 months total assets have increased by 37% to
$60 million, a rise that is primarily attributable to higher lending during
the period having positively affected the receivables ledger. The company
expects to maintain the positive trend.
Mr O'Connell says the half-year result represents the end of a chapter for
Geneva Finance, which is the only finance company that struck trouble during
the GFC yet subsequently repaid its debenture investors 100% of their
principal and interest on top: $180 million in total, including $40 million
in interest.
"It's been a long road since the company went into moratorium in November
2007. Achieving full repayment required major restructuring. We closed 21
branches, reduced staff from 325 to 30, and reduced operating costs by $20
million annually. Contemporaneously we repositioned the lending company from
third-tier to the second- and first-tier space, while focusing on both debt
repayment and protecting the core lending, insurance and collections
intellectual property necessary to allow the company to grow again.
"Overall, the $1.5 million after-tax profit is a satisfying result that
represents an improvement on the reported results of the two prior periods.
All business segments were profitable and the GFNZ Group's equity ratio, at
29%, is conservative. The group is now actively looking to build on the
success of the core business and explore expansion opportunities."
ends
For more information:
Alexander Communications
Kate Alexander
+64 (0)27 244 6094
[email protected]
About GFNZ Group Limited
GFNZ Group Limited (Geneva Finance) is a New Zealand-owned finance company
that provides finance and financial services to the consumer credit and small
to medium business markets.
At Geneva Finance we specialise in car loans and personal loans up to $50,000
with a fast, professional and friendly service. We have been looking after
the financing of family vehicles in New Zealand since 2002 and pride
ourselves on our competitive rates and quick approvals.
GFNZ Group Limited is a listed company on the New Zealand Stock Exchange (NZX
alternative market, NZAX).
End CA:00275080 For:GFL Type:GENERAL Time:2015-12-14 10:57:11
(20min delay)