Elders Finance has posted a 61% operating profit
The company has raised its pre-tax operating profit to a record $47.0 million, up on last year’s $26.8 million.
Friday, September 9th 2005, 9:25AM
by Rob Hosking
The result is partly due to an aggressive push earlier in the year, says Elders Finance and Hanover Group executive chairman Mark Hotchin.“We decided to accelerate our borrowing programme at the end of last year and earlier this year in anticipation that lending demand would continue strongly this year, at a time when our competitors obviously believed it would fall away,” says Hotchin.
“This subsequently enabled us to undertake larger and better quality transactions in the second half because we had better lending capacity than others”.
The company’s operating revenue passed the $100 million mark for the first time and totals at $115.5 million for the year - a 33.9% increase over the previous year’s figure of $86.3 million.
The bulk lending by Elders and Hanover is in the property sector, across commercial, residential, subdivisions, office, apartments, retail and coastal sectors.
“This strategy allows us to participate across many sectors of the New Zealand economy as opportunities arise and economic conditions permit,” says Hotchin.
The ratio of operating expenses to operating income for the year was 21% compared to 27% last year.
That was “one of the lowest operating cost structures in the industry”, says Chief Executive Officer of Hanover Financial Services Paul Cropp.
Net cash from the Elders Charging Group was $24.9 million compared to $21.1 million last year.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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