Profits soar for lender
MTF Finance has announced its underlying profit after tax hit $6.2 million for the six months to the end of March this year, which was a jump of 117 per cent when compared with the figure achieved a year ago.
The company highlights in its half-year results, released to the NZX on May 30, that it has also increased its market share from 11 per cent to 15 per cent over the same timeframe.
Other notable numbers for the six-month spell include:
• Grown retail receivables increasing 23 per cent year on year from $763m to $879m
• The number of customers rising by eight per cent
• Interim dividend up 77 per cent, reflecting an annualised dividend yield of six per cent
• Arrears of 31-plus days remain at an “exceptionally low level” of 0.7 per cent
• Additional franchise locations launched and its dealer network has grown by 23 per cent
Chris Lamers, chief executive officer, says MTF Finance has experienced a period of growth well above how the overall market has performed during “challenging times”.
Mark Darrow, chairman, adds: “Combined with a clear strategy that the board put in place almost two years ago, and a strong focus on action that benefits the customer, MTF Finance has been able to attract new customers and increase retention of existing customers.
“The board is now focusing on the next three years and how we build on this momentum.”
Despite an uncertain economic outlook, the company says it is confident of continued strong performance in the second half of the financial year.
“We have worked on reducing the cost to run the business, which is now at record lows as a ratio of income,” explains Lamers, pictured.
“We have increased access to funding and capital and are confident we can maintain this strong growth rate. We have entered the personal loan market, which is showing strong growth, and through partnerships, we have expanded our insurance offer.
“We have a strong roadmap of new products, partnerships and locations to expand into that we expect to continue to grow despite the economic environment.”
