Bridgecorp Produces Strong Interim Result
Auckland investment banker Bridgecorp Holdings Ltd has announced an improved result for the six months to September 30.
Chairman Bruce Davidson said unaudited after tax profit of just over $2.2 million for the half-year was ahead of the comparable period last year.
Since March, total assets had risen by 85 per cent to $152 million, including $96 million in loans, which were up by over 100%. Shareholders’ funds had increased from $10.2 million to $13.1 million, a gain of almost 33%.
Directors expected the full year’s profit to be ahead of the last financial year’s $4.8 million.
The six-month result was a strong one, Mr Davidson said. “The company is continuing to show significant growth and a successful capital note issue will keep the momentum going.”
Shareholders at a special general meeting in Auckland yesterday voted overwhelmingly in favour of the $10 million capital note issue, which was launched on the market last week. The issue, which had been subject to shareholder approval, is now unconditional.
Managing director Rod Petricevic said the issue would enable the company to grow its finance book, which was substantially invested in mortgage securities in New Zealand and Australia.
Bridgecorp had also taken a big step forward by insuring all new mortgages through Lloyds of London, he said. The policy covered first loss up to 75 per cent of the principal of each mortgage advanced. Lloyds is A+ Standard and Poor’s rated.
The insurance applied to all new loans since September and now covered about 30 per cent of the value of all Bridgecorp mortgages, Mr Petricevic said. Virtually the entire mortgage book would be insured by August next year.
The policy meant the company’s assets
were far more secure, making it more creditworthy. “The
benefits of that are flowing through to all the company’s
capital providers, including shareholders, debenture stock
holders and capital note investors,” he said.
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