Geneva Finance lifts 1H profit, buys debt collection operation
By Sophie Boot
Nov. 14 (BusinessDesk) - NZAX-listed Geneva Finance lifted first-half profit 34 percent and declared its first interim dividend.
The Auckland-based company, which provides finance and financial services to the consumer and small-to-medium business markets, said net profit rose to $3.2 million in the six months ended Sept. 30, with revenue from ordinary activities up 18 percent. The company also said it will distribute a 1 cent per share dividend, payable on Dec. 15.
"The strong profit performance reflects a lift in profitability in each of the core lending, insurance and collections operations," said managing director David O'Connell. "We continue to make investments in upgrading of our loan management, sales and insurance delivery and collections platforms, which we see as essential to expanding our business operations and profitability in an increasingly competitive market."
The profit growth was attributable to 12 percent growth in lending revenue and a 31 percent gain in collections revenues, as well as the maintenance of interest yields, control of asset quality, and the growth in insurance revenue, O'Connell said.
The company's debt collection subsidiary Stellar Collections has acquired software-based business-to-business debt collection operation MFL Services in a deal set to take effect from Nov. 30. O'Connell said the technology will enhance both operations and give Stellar a significant point of difference in the market.
Geneva Finance specialises in car loans and personal loans up to $65,000 plus fees and insurance, according to its website.
The stock, which is listed on the NZAX, last traded at 61 cents, down 1.6 percent today. It's up 32 percent this year.