Geneva targets ongoing growth

Geneva Finance Ltd is predicting its results for the current financial year will be in line with or above the pre-tax profit of $8.2 million it achieved in the year to the end of March 2022.

It says the last financial year was successful despite Covid interruptions and its record annual profit was up 22 per cent from $6.8m in the previous period. 

The company provided shareholders with a review of its 2021-22 performance at its annual meeting. It also told them the insurance operation continues to deliver increasing revenue and profits, and its receivables ledgers are well provisioned. 

Geneva added it was committed to maintaining profit growth but notes recent months have seen the continuation of factors that impacted results in the last financial year.

A presentation at the September 8 meeting adds there have also been some extra headwinds for the business since the end of March. These include dealer-to-public vehicle sales dropping by 12 per cent on last year, inflation and increased mortgage rates impacting household affordability, and an increase in corporate interest rates have increased. 

“Demand for lending [last year] was impacted by lockdowns and by regulatory changes. The impact of which have continued into the current year,” explains Geneva.

“The current year also brings challenges associated with the drop in consumer confidence, inflation and increased interest rates – both consumer and corporate.

“Nevertheless, the company is in a position to weather these challenges and remains committed to maintaining profit growth and a strong balance sheet

“As a result of the above we are expecting the September 22 result to be in line with or above last year.”

In other business at the meeting, Malcolm Cliff Johnston was re-elected as a director of the company.