Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Geneva Finance lifts 1H profit, buys debt collector

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.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Barfoot & Thompson: Auckland Rental Prices Inch Up Again, But Upward Trend Could Ease In Coming Months

Data from nearly 16,000 rental properties managed by real estate agency Barfoot & Thompson shows Auckland’s average weekly rent rose by $6.12 (or 1 percent) during the second quarter... More>>

ComCom: Draft Report Says Regulatory System Favours Established Building Products
The Commerce Commission’s draft report into competition in the residential building supplies industry has identified two main factors negatively impacting competition... More>>

Statistics: Annual Wage Inflation Rises To 3.4 Percent
Wage inflation, measured by the labour cost index (LCI), was 3.4 percent in the year ended June 2022, while average ordinary time hourly earnings rose 6.4 percent, Stats NZ said today... More>>

ALSO:

APEC: Region’s Growth To Slow Amid Uncertainties And Crises
Economic growth in the APEC region is expected to slow this year amid soaring inflation, a protracted war in Ukraine and heightened uncertainties, on top of the continuing impact of the pandemic and virus mutations that are draining resources, according to a new report by the APEC Policy Support Unit... More>>


Financial Markets Authority: Survey Sheds Light On New Zealanders’ Experiences With Financial Sector
Most New Zealanders are confident in their ability to make financial decisions, but only one-fifth say they are in a secure financial position... More>>


ASB: Latest Trade Disruption Report: Low Export Demand And High Import Prices Look Set To Continue

After a strong initial recovery from the effects of COVID-19 in 2021, New Zealand is likely to feel the impact of slowing global trade well into 2023, according to ASB’s latest Trade Disruption economic report... More>>