Heartland provides profit forecast
Heartland Building Society expects net profit for the year ending June 2012 will be between $20 million and $24 million following the acquisition of PGG Wrightson Finance.
Tuesday, August 2nd 2011, 10:22AM
by Jenny Ruth
The PGG Wrightson Finance purchase is expected to be completed by the end of August.
Heartland says it expects net profit after tax for the year ended June this year will be within its existing guidance of between $6 million and $8 million.
"The result will include substantial one-off costs associated with the successful merge5r and investment in both the new infrastructure aimed at meeting bank standards and expansion in distribution channels to foster growth," the company told NZX.
Heartland is aiming to become a bank as soon as possible with the timetable being determined by the Reserve Bank.
"This forecast is subject to finalisation of the year end accounts and audit."
Heartland says it is also establishing an employee share plan for employees not including directors and senior executives, providing its trustee with $1 million on or after August 16 to buy Heartland shares.
The trustee won't be buying shares during Heartland's $35 million fully underwritten share purchase plan (SPP), part of its $58 million capital raising to fund to the PGG Wrightson Finance purchase. The SPP will be open between August 8 and 24.
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