Geneva Finance maintains growth

Geneva Finance has announced an after-tax profit of $3.2m for the six months to 30 September 2016. This was an increase of 34 per cent on the same period in 2016, with revenue from ordinary activities up 18%. The result represented significant growth on the back of 2016’s 45 per cent half-year increase. It also comes at a time where the company is finalising a new acquisition that will give its subsidiary, Stellar Collections Ltd, a valuable point of difference in the debt collections market. The company will also distribute a 1.0 cent per share dividend, payable on 15 December, 2017. This is Geneva Finance’s maiden interim dividend, which will bring total distributions since 1 Apr. 17 to 3.0 cents per share, up from 1.5 cents per share in the prior financial year. Managing Director, David O'Connell says, “The strong profit performance reflects a lift in profitability in each of the core lending, insurance and collections operations. The profit growth was attributable to the growth in lending and collections revenues, up 12% and 31% respectively; the maintenance of interest yields; control of asset quality; and the growth in revenues from our insurance operations, where net premium written was 125% up on September 2016.” O’Connell also announced that Stellar has acquired MFL Services Ltd, a software-based debt collection operation. “MFL’s technology is leading-edge in debt collection, and integration of this technology into Stellar will enhance both operations and give Stellar a significant point of difference in the market by way of service and delivery of debt collection products.” By delivering a high half-year profit and maintaining conservative debt ratios, O’Connell says the group is well positioned for further acquisitions.