Pyne Gould Corporation has returned to profitability with an operating profit of $12.55 million for the six months to December and said it is on track to reach full year net profit guidance of $20.9 million.Net profit for the first half was $10.1 million,
Pyne Gould Corporation has returned to profitability with an operating profit of $12.55 million for the six months to December and said it is on track to reach full year net profit guidance of $20.9 million.
Net profit for the first half was $10.1 million, 13% above the budgeted figure of $8.9 million.
PGC, which last year raised $273 million and split its businesses into three separate units, described the interim result as satisfactory in difficult trading conditions.
“However, our aspirations are higher. The company, with new boards in place leading each of its operating businesses, a new highly experienced and skilled senior management team, and strong financial position is confident that the plans to create a market leading niche bank and wealth management business are well on track,” PGC said in its results commentary.
Marac Finance recorded a net profit before tax of $8.2 million, after including a one off $3.3 million pre-tax provision for a previously announced loan irregularity.
Perpetual Group contributed $3.7 million, while Perpetual Asset Management (PAM) made a pre tax contribution of $1.9 million. PAM’s investments include Real Estate Credit (the ex Marac property loans) and the Torchlight Credit Fund.
During the period PGC strengthened Marac’s balance sheet by investing a further $35 million in new capital, not requiring Marac to pay a dividend and arranging the sale of $175 million of property loans at face value to another PGC subsidiary.
“Collectively these steps resulted in Marac’s total equity increasing from $153 million (10.8%) to $197 million (15.2%), PGC said.
“Marac’s balance sheet has never been stronger, with $277 million of liquidity, the company remains focussed on securing a banking licence.
“This will require returning to a consistent track record of earnings, regaining an investment grade credit rating and building further scale in the business.”
PGG Wrightson, in which PGC has an 18.3% stake, contributed $400,000 to the result.
