Hanover reports cash reserves of $80 mill

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Hanover Finance has reported significant cash reserves and what it calls "a solid profit performance" for the six months to December 31.

Thursday, January 31st 2008, 6:48AM

The provisional figures, available ahead of audited results due in late March, show cash reserves at the half year balance date just above $80 million. Net profit before tax was $17 million, against $28 million in the corresponding period last year.

Hanover Finance chief executive David Bryan describes the result as "pleasing, especially given the challenging market conditions."

"While our top-line profit figure is lower, this is in line with the tighter market conditions and remains a very solid performance," Bryan says.

He notes that banking and finance markets have been impacted by adverse conditions over the last six months, and this is across the board from debentures through to debt/credit markets, funds management and latterly the sharemarket.

"So it is pleasing to see that Hanover's experience continues to stand it in good stead. We would like to acknowledge our investors support and ongoing loyalty in helping us achieve these results."

Bryan says Hanover will continue to keep prudent levels of cash on hand, and stick to its core business, "focusing the loan book on quality assets and picking out the best lending opportunities."

Hanover chairman Greg Muir says the "outlook remains positive for finance companies that are well-run and have strong governance and management, a consistent record of profit and an international credit rating."

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