Marac confident of improved profit

Marac Finance says its asset growth has slowed, but that the company is performing well in current conditions.

Wednesday, June 11th 2008, 12:18AM
It says that asset growth slowed in the second half of the financial year, but asset quality remains strong and instalment arrears remain at normal levels of around 0.5% of receivables.

Marac's directors remain confident the net profit after tax for the year to June 2008 will be an improvement on the $24.7 million achieved in the previous financial year.

The company announced this week that it intends to raise up to $125 million through an offer of first ranking, five year, fixed rate secured bonds.

Earlier this year it increased its bank syndication by $80 million to $480 million and its retail funded, secured debenture programme remains at around $560 million with reinvestment rates within the 65-75% range.

It says an increased level of new fund inflows have been noted with new fund inflows for May 2008 at the highest levels since June 2007.

Added to this it has built up its liquidity levels and now holds more than $140 million in cash and undrawn funding lines.

Money raised in the bond offer will be used to finance Marac's ongoing lending activity, diversify its funding sources and add to its current liquidity position.

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