GFL
03/12/2014 16:38
HALFYR
PRICE SENSITIVE
REL: 1638 HRS GFNZ Group Limited
HALFYR: GFL: GFNZ Group Limited - Half Year Results Sep 2014
GFNZ Group Limited - Half Year Results
GFNZ Group LIMITED RESULTS FOR ANNOUNCEMENT TO THE MARKET
Reporting period: 6 months to 30 September 2014.
Previous reporting period: 6 months to 30 September 2013.
GFNZ Group has confirmed the Group's results for the reporting period for the
6 months to 30 September 2014.
The results, as follows, include the percentage change for the previous
reporting period of the 6 months to 30 September 2013.
Revenue from ordinary activities:
$4,392,000 26% decrease
Profit/(Loss) from ordinary activities after tax attributable to security
holders:
$288,000 256% improvement
Profit/(Loss) attributable to security holders:
$288,000 256% 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 (6 months to 30th September 2014)
The after tax unaudited financial result for the period was a profit of $288k
vs a profit of $88k in 2013.
Business Performance:
During the period each of the group's trading entities reported profits
before group overheads. The profit generated by the trading operations
amounted to approximately $900k with the parent cost structure incurring
$620k of costs resulting in a group profit of $288k for the six months.
Geneva Financial Services (Geneva), which is responsible for the "new
business lending" experienced good lending growth during the period and
delivered a $0.5m profit before group overheads.
Quest Insurance Group Limited's (Quest) produced a $0.2m profit before group
overheads.
Stellar Collections (Stellar) which holds the residual old ledgers and old
business assets, produced a profit of $200k before group overheads
Pacific Rise Limited (PRL) holds an investment in regional medical property
produced a $35k profit before group overheads.
Balance Sheet:
The settlement of the rights issue during the period improved the company's
equity to total assets ratio to 33.1%
Operating Costs:
The group's operating costs compared to the same period last year decreased
by $700k (20%).
Rights Issue
During the period the Group raised an additional $6.1m of new equity via a
rights issue during May 2014. A total of $0.6m of this was taken up by public
shareholders and the remaining $5.5m was taken up by Federal Pacific Group
(Fedpac), under their underwrite agreement with the company. Fedpac settled
its share take up by converting their $5m shareholders loan to equity with
the balance being settled in cash. As a result Fedpac raised its shareholding
in the company to 57.42%.
Funding:
The group has two components to its funding:
a. Geneva (the new business model) has a $30m securitisation facility which
is currently drawn to $21.6m.
b. Stellar has a three year $5.0m debt funding package which includes loan by
directors.
Standard and Poors Credit Rating:
The company does not currently have a financial credit rating.
Strategic Direction:
The Group is now well placed to expand its lending programs and this is now
the primary focus of the Board. The Group is also in a position to revisit
its collections operations and explore opportunities that exist in the market
to expand. Insurance business premium sales are linked to the group's lending
volumes and improvements in lending are expected to flow through to the
insurance business results.
Summary and outlook:
The $0.3m reported profit for the first 6 months of the year is a pleasing
result following on from the $4.2m loss reported at March 2013. There remain
challenges ahead to grow lending volumes but the Board are confident that
this can be achieved while maintaining asset quality.
End CA:00258465 For:GFL Type:HALFYR Time:2014-12-03 16:38:51
(20min delay)