NZ Finance Holdings forecasts $2.5m profit

NZ Finance Holdings forecasts $2.5m profit.

Richard Waddel, Independent Chairman of New Zealand Finance Holdings, has advised the NZ Stock Exchange that the directors’ profit forecast to next March, exceeds $2.5 million.

NZ Finance listed on the exchange in October.

The forecast result would represent a 50 percent increase over the March 2004 year. It should be noted that the profit in the previous period did not include the trading performance of New Zealand Mortgage Finance Limited which was only acquired by NZFH on 31 March 2004.

Mr Waddel said business activity has remained strong despite increasing interest rates and a slowing of residential property sales.

“It is encouraging to see the Reserve Bank’s latest decision to maintain the official cash rate which should provide some stability,” he said

NZFH specializes in short term advances and has only minimal lending exposure to the construction industry or CBD apartment market. Mr Waddel said that over 90 percent of the company’s invested funds are secured against “quality” residential real estate.

He said the experience of senior management who have high level banking backgrounds, the combination of a growing internal broker network and sound growth in the number of secured debenture investors, are combining to give the company a solid platform to meet growth plans in the next five years.

“A key challenge is to differentiate ourselves in the financial sector and we are beginning to improve levels of understanding about our company and our products,” he said.

Write offs since the last balance date have been nil.

Mr Waddel said directors are satisfied with the success of the listing of NZFH, which also helps to differentiate the company in the financial sector.

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