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- Release Date: 14/06/12 12:33
- Summary: FLLYR: GFL: GFNZ Group Limited - Full Year Results - Mar 12
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GFL
14/06/2012 10:33
FLLYR
REL: 1033 HRS GFNZ Group Limited
FLLYR: GFL: GFNZ Group Limited - Full Year Results - Mar 12
GFNZ Group Limited - Full Year Results
GFNZ GROUP LIMITED RESULTS FOR ANNOUNCEMENT TO THE MARKET
Reporting period: 12 months to 31 March 2012
Previous reporting period: 12 months to 31 March 2011
GFNZ Group has confirmed the Group's results for the reporting period for the
12 months to 31 March 2012.
The results, as follows, include the percentage change for the previous
reporting period of the 12 months to 31 March 2011.
Revenue from ordinary activities:
$12,396,000 20% down
Profit/(Loss) from ordinary activities after tax attributable to security
holders:
($1,577,000) 82% improvement
Profit/(Loss) attributable to security holders:
($1,577,000) 82% improvement
Interim/final dividend: nil
Amount per security: $0.00
Imputed amount per security: $0.00
Record date: n/a
Dividend payment date: n/a
Comments:
Financial Result (12 months to 31 March 2012)
The after tax financial result for the year was a loss of $1.6m vs a loss of
$8.6m in 2011.
Business Performance:
The operating costs associated with collecting the old ledgers are the main
contributor to the reported loss of $1.6m. The Group reports its trading
results per its operating segments as per the extract of note 35 from the
Group's financial statements. As per this analysis the reported loss is
allocated as follows:
New Business $0.9
Insurance $0.3
Old Business ($2.6)
Property $0.1
Head Office (Corporate) ($0.9)
Eliminations $0.6
Net loss ($1.6)
The new business model is established, the ledger now has four years of
seasoning and the profit performance of this business is pleasing. The
insurance business continues to be profitable and is well positioned to
continue to deliver positive returns as the new business model expands. As
for the old business model, as receivables ledgers are realized they are
reducing in relevance to the group. However they continue to be costly to
collect and are the main cause of the current year losses. The Group's only
directly owned property is the head office at Mt Wellington, the upper floor
of which is tenanted by group companies. This operation's profitability is
determined by rentals received from its tenancies. Eliminations relates to
inter segment provisioning.
Operating Costs:
The group's continued focus on cost reduction has delivered further operating
cost savings of $1.3m (13%) as compared to the equivalent period last year.
Since October 2007, (when the Group entered moratorium) group annualised
operating costs have been reduced by $29m per annum.
Investor Principal and Interest Repayments:
The group paid the scheduled $4.9m principal repayment due on 30th September
2011 on 31st August 2011 (one month early) and the $4.9m payment due on 31
March 2012 on 30 March 2012. As at 31st March 2012 the Group had made in
excess of $126m of principal and interest repayments to investors since
entering moratorium on 5th November 2007.
Covenant Compliance:
The group complies with all covenants and capital adequacy requirements under
its banking facilities, the Reserve Bank and the group's Debenture Trust
Deed. During the period the Group had two minor breaches of one of its
banking facility covenants, the details were disclosed in the Group's
September 11 interim accounts. The banking facility terms were amended
during November 2012 when this covenant was removed.
Funding:
On 28 March 2012 the Group successfully placed approximately 44 million new
ordinary shares with Federal Pacific Group Nominees Limited (FedPac) which
is now a 19.99% shareholder raising $1.2m of new capital. This vote of
confidence by Fedpac represents a significant milestone as the Group pursues
funding opportunities which include: (a) Funding through a professional
investor structure via which FedPac have committed to provide $3.0m of
funding. (b) The reactivation of the group's prospectus and (c) The pursuit
of alternative banking lines to replace the BOSI facility which is scheduled
to be repaid in full by 31st March 2015.
Strategic Direction:
The Group is committed to the consumer finance and insurance market with the
primary focus being on the Automotive sector. Over the last four years there
has been considerable rationalization, and increasing barriers to enter into
this sector. As the economy normalizes and comes out of recession there will
be an opportunity to expand this business. Obtaining ongoing sustainable
funding is key to capitalizing on this opportunity.
Summary and outlook:
The past 12 months has seen the continued success of the Group in repaying
debenture holders both their principal and interest with these repayments now
exceeding $126m since November 2007. During that period we have also
developed and now proven the profitability of the new business model
strategy. Going forward, successfully obtaining new sustainable funding
sources so we can expand the new business model together with a continued
focus on collecting the old business model assets remain the main challenges
for the Group. The board and management of the Group are committed to
achieving this.
End CA:00223846 For:GFL Type:FLLYR Time:2012-06-14 10:33:56
(20min delay)