Geneva Finance profit increase

Geneva Finance has announced an after-tax profit of $2,357,000 for the six months to 30 September 2016. This was an increase of 56 per cent on the same period in 2015, while revenue from ordinary activities was $7,536,000, a 31 percent gain on 2015. “This result, which confirms the company is now positioned for a period of sustainable profitability, has been achieved contemporaneously with the payment of the group’s maiden dividend of 1.5 cents per share, and the seven-for-one share consolidation," said managing director, David O’Connell. The group's pre-tax profit of $1.8m (up 72 per cent on last year) comprised a trading entity pre-tax profit of $2.6m, less group overheads of $0.9m. A deferred tax asset of $0.6m was recognised during the period, resulting in the after-tax profit of $2.4m. "Sustained lending growth growth, 12.5% up on last year (which was 26 per cent and 61 per cent up on March 15 and March 14 respectively), has seen the receivables ledger increase to $55.3m which – in conjunction with maintenance of interest yields and control of asset quality – resulted in a $2.0m profit from lending for the six months. This is a 73 per cent increase on last year." O’Connell said the group is in the process of upgrading its loan management, sales delivery and collections platforms. "This has been a focus of the last six months and will continue to be so for the next twelve months and beyond as we see increased use of technology as essential to delivering on our goal of 'making life easier' for our customers, improving customer service levels and supporting the expansion of the group’s lending, insurance and collections services.” With the high profit for the six months and the group’s conservative debt ratios and now sustainable profitability, O'Connell says the group is well positioned for the right acquisition opportunity.