Heartland NZ on track for $6 mln to $8 mln maiden profit
Aug. 2 (BusinessDesk) – Heartland New Zealand Ltd., the lender formed from the merger of Marac Finance and the Canterbury and Southern Cross building societies, says its maiden profit target and has flagged fatter earnings for next year.
The Christchurch-based lender said it made net profit of between $6 million and $8 million in the year ended June 30, including the one-off costs of merging the three mezzanine financiers.
The final result will be announced by at least Aug. 19.
Earnings will treble in the 2012 financial year, with Heartland flagging net profit of between $20 million and $24 million.
That includes earnings following the $58 million PGG Wrightson Finance purchase.
The lender, which is aiming to achieve a banking licence, is raising $35 million from existing shareholders, via a share purchase plan, in a deal underwritten by Pyne Gould Corp. for $10 million and by Impact Capital Management, a private company representing interests of South Island investors, the Tomlinson family.
PGG Wrightson Ltd. and Pyne Gould will each buy $10 million of shares in Heartland through private placements.
Heartland’s shares were unchanged in trading yesterday, and have slumped almost 31% this year.