Loyal Investors Spark High Profits
12 November 2004
Loyal Investors Spark High Profits For Nationwide Finance
Finance industry stalwart, Nationwide Finance Limited, today announced a solid net profit of $2.6 million for the year to June 2004, up from $1.4 million for the ten months to June 2003.
The plant and equipment finance specialist, which is a member of the Hanover Group, attributes the $1.2 million lift in net profit to loyal investors, grass roots customers and "a strong focus on businesses that form the backbone of New Zealand".
Nationwide's total assets grew 31 percent to $157 million as at 30 June 2004, from $120 million as at 30 June 2003. Total liabilities (consisting mainly of investor funds) had a corresponding increase, up to $141 million from $107 million.
There were no related party loans or advances as at 30 June 2004. At the same time, shareholders' equity rose to $16.6 million, from $12.7 million.
Hanover Group Chairman Mark Hotchin says Nationwide's loyal investor base and prudent lending strategies have created a solid platform for sustainable growth.
"Nationwide has been around for 31 years and a lot of its investors have been with the company for many years. The company had a very high customer reinvestment rate in the 2004 financial year and is well-placed to continue to grow new investor funds," he says.
Mr Hotchin says investor confidence is important for Nationwide Finance and the company has moved in the last year to further improve its governance standards, including the appointment of academic and business leader, Sir Tipene O'Regan, as an independent director.
Sir Tipene's considerable political, business and governance experience make him well qualified to represent the interests of stakeholders and investors. He serves on a number of boards in the agricultural, tourism, finance and natural resources sectors.
Mr Hotchin says the company plans to build further solid growth during the coming year.
"Nationwide is a prudent lender that supports a diverse range of industries, from transport and manufacturing to agriculture and property," he says.
With 31years' experience behind it, Nationwide Finance has a loan book of $130.9 million, the majority being secured over plant and equipment, with some diversified property interests. It ranks in the top (by asset size) 20 finance companies in New Zealand, according to the KPMG Financial Institutions Performance Survey 2004.
A copy of Nationwide Finance's investment statement is available on request from the company. The securities offered are secured first ranking debenture stock. Ranking is subject to prior permissible charges. Nationwide Finance is the sole issuer of the securities and Hanover Group does not guarantee those securities.