GFL
12/06/2015 13:52
FLLYR
PRICE SENSITIVE
REL: 1352 HRS GFNZ Group Limited
FLLYR: GFL: GFNZ Group Limited - Full Year Results - March 2015
GFNZ Group Limited - Full Results
GFNZ Group LIMITED RESULTS FOR ANNOUNCEMENT TO THE MARKET
Reporting period: 12 months to 31 March 2015.
Previous reporting period: 12 months to 31 March 2014.
GFNZ Group has confirmed the Group's results for the reporting period for the
12 months to 31 March 2015.
The results, as follows, include the percentage change for the previous
reporting period of the 12 months to 31 March 2014.
Revenue from ordinary activities:
$9,917,000 3% increase
Profit/(Loss) from ordinary activities after tax attributable to security
holders:
$2,194,000 152% increase
Profit/(Loss) attributable to security holders:
$2,194,000 152% increase
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 31st March 2015)
The after tax unaudited* financial result for the year was a profit of $2.2m
vs a loss of $4.2m in 2014.
* Audit is currently in progress
Business Performance:
The group reported an after tax profit for the year of $2.2m (2014: $4.2m
loss). Net profit before tax amounted to $1.5m (2014: $4.2m loss)
All trading operating segments of the group reported profits and performed as
follows:
Geneva Financial Services (New Business Lending): March 15 pretax profit
$1.5m (March 14 $0.6m)
The improved profit performance +$0.9m +150% was primarily attributable to
both increased lending volumes which were 61% up on the prior year and the
continued focus on asset quality. The increased lending delivered a 43%
growth in the receivables ledger. This growth was funded by a combination of
the Securitisation facility established in August 2013, and the group's own
cash resources. Maintaining lending growth and asset quality remains the key
management focus.
Quest Insurance Group (Insurance): March 15 pretax profit $0.5m (March 14
$0.5m)
The insurance business result is satisfactory, given Quest is currently
classified as a small insurer, restricting the amount of annual premium it
can write to $1.5m p.a. As a consequence, premium originations of
approximately $0.7m were provided to Geneva Financial services' customers by
other insurers. This impacted Quest's performance for the year and the
financial restructuring necessary to remove this restriction is underway.
Stellar Collections (Old Business Ledgers): March 15 pretax profit $0.6m
(March 14 $5.5m loss)
The profit achieved for the year is a direct result of maintaining cash
collections on these ledgers. This is a pleasing result as collecting these
ledgers continues to be resource driven. Changes made to collection processes
during the year both, contributed to this result and also positioned the
company to actively explore new debt business opportunities.
Pacific Rise (Property) March 15 pretax profit $0.3m (March 14 $0.3m)
The returns received from the Company's share in its property investment was
better than expected due to an additional dividend received during the year.
Parent Company (GFNZ Group, Corporate) March 15 pretax loss $0.1m (March 14
$0.2m loss)
The Group has approximately $9.0m (tax effected) of tax losses available and
as a consequence of the Group returning to profit in March 15 and forecasting
a profit for the next financial year the directors have determined that it is
appropriate to recognize a deferred tax of $0.6m on the Group's balance
sheet. The Parent Company result also includes a reduction of $0.6m
provision against a subsidiary loan which eliminates on consolidation.
Corporate and governance costs are carried by the Parent Company.
Revenues:
Operating revenues comprise interest from Receivables ledgers of $6.5m up
$0.9m (+17%) on last year, premium income of $1.4m up $0.2m (+13%) on last
year and other income of $1.9m down $0.8m (-29%) on last year. The last year
"other income" included a one of, non trading gain of $1.0m relating to debt
refinancing in August 2013.
Operating Costs:
Group's total operating costs reduced by 21%. The majority of this decrease
is related to establishment costs incurred and expensed in the prior year
setting up the securitization facility.
Balance Sheet:
The net receivables ledger increased to $41.8m. as a result of the increased
lending. Term debt increased to $26.9m, to fund the increase in the
receivables ledger. The group's equity to assets ratio increased to 31.6%, a
direct result of the rights issue settling in May 2014, positioning the
company for further growth.
Rights Issue:
The rights issue settled in full in May 2014. This was fully underwritten by
Federal Pacific Group (cornerstone shareholder) and after taking up the
rights not taken up by existing shareholders their shareholding increased to
57.4%. The company shares on issue increased to 483m.
Funding:
The securitization facility's annual review was completed in June 2014 and
the facility was extended through to July 2016. The $30m facility was drawn
to $27m at balance date. Since year end this facility has been increased to
$35m. to accommodate planned growth of the receivables ledger.
Other Borrowings comprise funding sourced from eligible professional
investors. Since year end these have been refinanced at a lower interest cost
to the company.
An additional 2 year evergreen banking term loan of $3.4m was secured shortly
after year end from a major trading bank. This further diversifies the groups
funding and offers the opportunity for further expansion of the core business
activities.
Strategic Direction:
The main objective of 2015 was to get the group back into profitability.
Having achieved this the focus is now growth orientated, with the initial
concentration being in the core Lending, Insurance and debt collection
activities.
Summary and outlook:
The company returned to profit in the March 15 year and is forecasting an
improvement on this year's result next year. Growing and expanding our market
share, optimizing the insurance business potential and sourcing new debt
business are key to achieving this.
End CA:00265634 For:GFL Type:FLLYR Time:2015-06-12 13:53:00
(20min delay)