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Marac Yr Net Profit Forecast To Rise

Fuseworks Media
Fuseworks Media

Wellington, June 10 NZPA - Pyne Gould Corporation-owned Marac Finance has forecast a rise in annual net profit despite slowing growth in assets.

Yesterday, PGC said it was considering a capital raising of up to $125 million through a bond offer to finance Marac's lending activities and further diversify its funding sources.

While asset growth in the second half of the financial year had slowed, Marac's asset quality remained strong, and instalment arrears were at normal levels of around 0.5 percent of receivables, said PGC and Marac managing director Brian Jolliffe.

"Marac's directors remain confident the net profit after tax for the year ended June 2008 will be an improvement on the $24.7 million achieved in the previous financial year."

Marac increased its bank funding lines in March by $80m to $480m, and held over $140m of cash and undrawn funding lines.

Reinvestment rates for its secured debenture programme were within the normal 65 percent to 75 percent range, and fund inflows for May were the highest since June 2007, Mr Jolliffe said.

Marac is one of the country's largest finance companies. Twenty finance companies have failed in the last two years, in part reflecting the effects of a global credit crunch.

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