Geneva Finance lifts 1H profit, buys debt collection operation

GFNZ Group managing director David O'Connell said "The strong profit performance reflects a lift in profitability in each of the core lending, insurance and collections operations"

NZAX-listed Geneva Finance lifted first-half profit 34 percent and declared its first interim dividend.

The Auckland-based company, which provides finance and financial services to the consumer and small-to-medium business markets, said net profit rose to $3.2 million in the six months ended Sept. 30, with revenue from ordinary activities up 18 percent. The company also said it will distribute a 1 cent per share dividend, payable on Dec. 15.

"The strong profit performance reflects a lift in profitability in each of the core lending, insurance and collections operations," said managing director David O'Connell. "We continue to make investments in upgrading of our loan management, sales and insurance delivery and collections platforms, which we see as essential to expanding our business operations and profitability in an increasingly competitive market."

The profit growth was attributable to 12 percent growth in lending revenue and a 31 percent gain in collections revenues, as well as the maintenance of interest yields, control of asset quality, and the growth in insurance revenue, O'Connell said.

The company's debt collection subsidiary Stellar Collections has acquired software-based business-to-business debt collection operation MFL Services in a deal set to take effect from Nov. 30. O'Connell said the technology will enhance both operations and give Stellar a significant point of difference in the market.

Geneva Finance specialises in car loans and personal loans up to $65,000 plus fees and insurance, according to its website.

The stock, which is listed on the NZAX, last traded at 61 cents, down 1.6 percent today. It's up 32 percent this year.

(BusinessDesk)


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Outstanding. The story of this finance company going to the brink, hanging in there, dutifully paying off all of its investors in full, and resurrecting themselves and now paying dividends needs to be told to a wider audience.

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That's not really true. They didn't pay off all the debt - they actually gave their debenture stockholders some worthless equity as part of it.

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Well that's not entirely true either. I was one of their investors that received part shares in the swap deal. The rest of my investment still received interest at the rate of 11%, until it was repaid in full. The shares that you refer to as "worthless equity", eventually went up in price, and I sold out.
Sometimes it pays to know what you are talking about, before you mouth off.

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Just as a matter of interest David, did you ever get round to repaying that interest free loan, of $237.711, that had no repayment date connected to it, that you took out from the company way back in the day..
You didn't think that I had forgotten about it did you?

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Winston's back next week.....if may have a spare sign available?

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As someone that was burned by the finance company debacle, and the nonsense that followed it. Unlike every other kiwi in the country, I'm not prepared to just forget about it. Although I sometimes worry that it may be at the detriment to my health. I have been threatened personally, and anonymously. Nothing has happened yet, despite the odd unfamiliar car parked up outside my house for a good long while. I approached one once, that took off immediately. I'm under no illusion that some of these ex-finance company bosses are not very nice people. In hindsight, I wish I'd known a bit more about them in the beginning.

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Yes, I can only sympathize. My mum in-law was also very badly burnt by a particular finance company. While she's never been personally threatened, or had an unfamiliar car parked up outside her place, at least she got a good laugh when Hell Pizza parked a yuge billboard outside the house of someone she knew

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