Provincial Finance continues strong profit growth

Tuesday November 23

Provincial Finance continues strong profit growth

Canterbury based finance company, Provincial Finance Ltd is diversifying further into property and business lending after more than doubling its profits for the six months ending September 30, 2004.

Provincial Finance’s operating profit before tax increased by 117 per cent to $11.3 million on the same period last year when the profit before tax was $5.2 million.

In announcing the strong profit result, Company Founder and Director, David Lyall, says future plans include increasing the company’s involvement in property and business lending. Demand for consumer finance, the area in which Provincial Finance now specialises, remains stable, he says.

Provincial Finance’s after tax profit for the six months to September 30, 2004, was $7.065 million on a turnover of $36.8 million. This compares with the after tax profit of $3.2 million on the turnover of $17.3 million in the corresponding six months last year.

Mr Lyall says the company’s strong growth is also reflected in a more than 100 per cent increase in its equity to $22.2 million from $11 million for the corresponding period last year.

“We are obviously very pleased at the company’s continued growth and optimistic about future increases. We are also confident about further investor support given our consistently strong results,” Mr Lyall says.

It has been a year of achievements for the company which was 13th on the Deloittes Fast 50 which lists the 50 fastest growing companies in New Zealand. Provincial Finance has grown 336 per cent in the last three years.

Provincial Finance lends mainly second mortgages on homes and motor vehicle and rural finance. The company, which also operates an office in Auckland, uses legendary All Black Colin Meads to front its advertising campaign.

ENDS

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