MTF
15/11/2013 15:47
FLLYR
REL: 1547 HRS Motor Trade Finances Limited
FLLYR: MTF: MTF reports full year profit of $8.2 million
Profit after tax was $8.2m (30 September 2012: $4.6m)
Profit before commission and other gain (loss) is up 13%, to $39.3m,
resulting from strong interest margin, asset growth and funding efficiencies.
Operating expense, excluding bad debt, as a percentage of assets under
administration, improved to 2.89% (2012: 3.01%). Administration expense
increased 27%, including $1m of legal fees incurred in the defence of High
Court proceedings brought by the Commerce Commission. Bad debt written off
totalled $0.3m (2012: $1.4m).
Total assets increased by 8% or $31.7m, on the back of improving sales. Net
interest income, as a percentage of finance receivables, remains healthy at
10.8% (2012: 10.3%). Growth in finance receivables was funded through
securitised borrowings, which increased $32m to $350.1m. Securitisation
facilities increased $53.4m to $395.5m, with $43.9m undrawn at year end.
Capital, as a percentage of total assets, has remained steady at 17.5%
($77.1m) and is sufficient to underpin projected growth over the near term.
Arrears held steady at targeted low levels during the year and, at 30
September 2013, 31+ day arrears stood at 0.60% (2012: 0.60%),reflecting the
continued focus on quality lending, best practice origination and active
management.
We continue to develop market leading technology to deliver our originators a
complete desk-top finance offering. We took steps during the year to deliver
this vision, with the completion of a number of major projects, including
development of a new web based origination system, and the launch of
smartphone and tablet applications for customers and originators.
We expect demand for new and used vehicles to continue to improve, as
domestic economic and labour market conditions improve. Business and
consumer confidence continues its slow recovery, has broadened beyond the
Canterbury region, and will drive an increased appetite for credit.
The board and management are confident that market leading technology, secure
funding, and a focus on outstanding service, to customers and originating
shareholders, put MTF in the position to take a greater share of a recovering
market.
For further information, please contact:
Angus Bradshaw
Managing Director
Motor Trade Finances Limited
03 467 7988
[email protected]
Visit us at www.mtf.co.nz
End CA:00243879 For:MTF Type:FLLYR Time:2013-11-15 15:47:09
