by Niko Kloeten
Its main goal is to become a bank but listed financial firm Heartland has another goal in mind: to pay regular dividends to its investors.
In its annual report Heartland affirmed that it expected the Reserve Bank’s decision on its banking licence application would be available in November, although the timing remains uncertain and the result unknown.
It also said delivering “acceptable and sustainable earnings” was a key priority moving forward.
“Subject to meeting profit targets and regulatory capital requirements, we intend to become a regular dividend payer,” the company said.
Heartland, which isn’t paying a dividend for the June 30 2012 financial year, will outline its dividend policy at its AGM being held in Ashburton on November 30, where it will also provide profit guidance for the next financial year.
It recorded a $23.6 million profit in the year to June 2012.
Finance director’s bail bid fails
Convicted finance company director Trevor Allan (Allan) Ludlow has been denied bail as he prepares to appeal his jail sentence.
Last year the former National Finance 2000 boss was sentenced to five years and seven months in prison after being convicted of theft and false accounting charges brought by the Serious Fraud Office.
Ludlow has appealed against his sentence, which he claims was "manifestly excessive", and may also appeal his conviction.
He told the Court of Appeal that he should be granted bail because he couldn’t prepare his case while in prison; prison authorities had declined him access to a fax, computer and printer.
However, the court denied his application, saying he should make a formal request to the prison on that issue.
Govt bond yields stay low
Yields on New Zealand government bonds continue to hover around historic lows, with the latest auction heavily oversubscribed.
The New Zealand Debt Management Office (NZDMO) last week offered $100 million of government bonds maturing in 2019 and $150 million of 2023 stock.
The 2019 issue attracted $291 million of bids (a bid/cover ratio of 2.9) at a weighted average successful yield of 3.04%, while the 2023 issue attracted $399 million of bids (2.7 bid/cover ratio) at an average successful yield of 3.46%.
Meanwhile, the Local Government Funding Agency, which issues debt on behalf of a group of councils, is due to issue its latest round of bonds this week.
The LGFA, which had its last bond auction in late August, has more than $1 billion on issue.
Niko Kloeten can be contacted at niko@goodreturns.co.nz
| « Heartland profit forecast downgraded, but future positive | Rates round-up: October 8 » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved