Bridgecorp Announces Strong Result

MEDIA RELEASE

May 22, 2001

Bridgecorp Announces Strong Result

Bridgecorp Holdings Ltd has announced an after-tax surplus of $6.8 million for the year to March 31, 2001, up 42% on last year’s $4.8 million. Revenue rose from $19.0 million to over $39.9 million and total assets grew 260% from $82.2 million to $213.7 million.

Chairman Bruce Davidson said the surplus after tax and minority interests was a record for the company, exceeding both budget and forecasts.

During the year, Bridgecorp consolidated its finance and investment banking operation, resulting in strong growth in this area, he said. Revenues from fees and interest were up by more than 180% on the previous year.

“A major highlight of the year was the heavily oversubscribed issue of capital notes, raising $18.39 million which helped grow the finance book from $47.8 million to $160.5 million.”

Mr Davidson said the growth in this sector has been both in New Zealand and Australia with the company now having established itself as a major lender in the non-banking sector.

“A significant part of our loan portfolio is now insured by Lloyds of London, as a result investors had recognised the security of our debenture stock.

“We now have a strong investor following across all of New Zealand, especially in the South Island, which is most pleasing,” he said.

Revenue from the property division amounted to 30% of total revenues with over $12 million generated from property sales.

“The Hartner collapse saw us take the initiative and set up special provisions to financially protect sub-contractors through special bank trust accounts - interestingly, similar provisions are now included in the Construction Contracts Bill before Parliament which is long overdue for the industry.”

Mr Davidson said that the company would be increasingly focussed on Australia in the future where several opportunities were presently being analysed. Those are likely to result in establishing a more significant presence in Australia.

Directors were recommending a fully imputed dividend of three cents per share payable on shares held at the close of business on 11 June 2001 to be paid immediately following the annual general meeting. This recommendation has been brought forward 12 months because of the strong result, said Mr Davidson.

Tax expense for the year was $2.06 million up from $840,000 last year. The Annual General Meeting will be held in Auckland on 26 June.

ENDS

See also highlights summary attached.

BRIDGECORP HOLDINGS LTD - HIGHLIGHTS FOR THE YEAR 2001

- A record surplus after taxation of $6.8 million exceeded the previous year’s surplus of $4.8 million by 42%

- Total revenues increased from $19.035 million to $39.938 million.

- Total assets have increased to $213.6 million, an increase of 260% over the previous year’s total assets of $82.2 million.

- Total equity increased by 60% from $10.235 million to $16.338 million.

- Loans secured by mortgage increased to $160.5 million, up 236% over the previous year’s $47.813 million.

- Secured debenture stock increased 175% to $145.293 million.

- Earnings per share increased 35% to 16.5 cents.

- Capital notes issue closed oversubscribed at $18.393 million.

- Westwood Park Stage 1 and Oakwood Hall developments completed.

- Australian subsidiaries reported surplus after tax of $1.871 million compared to $0.742 million in the previous year.

- Fully imputed divided of 3 cents per share recommended by directors.

Bridgecorp Four Year Summary

($ millions)

1998 1999 2000 2001

Total Revenue 4.6 7.2 19.0 39.9

Total Equity 3.4 4.2 10.2 16.3

Total Assets 12.4 31.8 82.2 213.6

After Tax Profit 0.1 1.3 4.8 6.8

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