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MTF reports half-year operating profit rise

Posted on 22 May, 2017

MTF have reported a half-year operating profit after tax of $4.4 million, up 51.7 per cent on the corresponding period last year, on the back of a sales boom in the industry. The company is in its tenth year of operation, with a network of 261 dealers across New Zealand that sell motor vehicles in conjunction with financial services, and a further 43 franchises that focus solely on financial services. However, underlying profit after tax, which MTF says “moves the volatility of unrealised fair value movements, providing a more consistent and meaningful measure of company performance after commissions,” was $3.7 million, a 3.4 per cent decrease compared to March 2016. Sales increased 36 per cent, which the MTF says is due to a buoyant economy, record vehicle sales and the non-recourse lending option developed in partnership with Turners last November. “The car lending market generally remains very competitive, and it has been very pleasing to achieve growth in market share... from 11.4 per cent to 12.9 per cent,” said MTF in their financial report for the half-year. The non-recourse offering with Turners, “significantly exceeded expectations,” according to MTF. Sales topped $25 million since the pilot was launched in early December last year. Technology is set to be a large part of MTF’s future development. The company saw success with the uptake of electronic document and signature capture, which was rolled out last year, with 41 per cent of loans were originated using the new electronic platform. Future initiatives include loan origination via an iPad and smart customer on-boarding tools, with more details expected to be announced in the coming months.