Instant Finance works to improve balance sheet
Personal lender Instant Finance has improved its annual net profit to $3.3 million, after one-offs relating to refinancing hit last year's result.The profit for the year ended March 31 was above the previous year's $1.1m surplus.Instant Finance repaid all
Personal lender Instant Finance has improved its annual net profit to $3.3 million, after one-offs relating to refinancing hit last year's result.
The profit for the year ended March 31 was above the previous year's $1.1m surplus.
Instant Finance repaid all remaining debenture holders in August 2009, and now funds its operations from a $70m wholesale line from American-based Fortress Credit Corp. The funding is available until October 2012, and can be increased to $100m.
"As funding conditions and investor confidence in the industry continued to decline and the Treasury guarantees further distorted the debenture market in late 2008, it was no longer appropriate to bet the company's or our investors' long term future on debenture funding," chief executive Richard de Lautour said.
"It was in the best interests of both investors and the company that all remaining debenture holders were repaid early."
Shareholders are still not receiving dividends in order to improve the balance sheet, he said.
Net loan receivables rose 17 percent to $64.9m, before doubtful debt provision of $2.6m. The company advanced $85.3m for the year, with the average loan about $3500.
Instant Finance is aiming to expand its 18-branch network, and has opened its first South Island branch.
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