Esanda maintains its profit growth

Press, Volume CXIV, Issue 33694, 18 November 1974, Page 21

Esanda maintains its profit growth

(New Zealand Preus Association —Copyright) SYDNEY. Esanda, Ltd, the wholly-owned hire purchase and general finance subsidiary of the A.N.Z. banking group, has surprisingly maintained profit growth in its latest year.

Earnings in the September' 30 year rose 10.7 per cent to $7,100,583 whereas in 197273 profits went ahead 11 per cent from $5,779,663 to $6,442,377. At the half-way mark in

March this year, Esanda was up 13.4 per cent, but the directors indicated in their | interim report that the finan-' cier would be under increas-l ing cost pressures during the remainder of the year. They said that future trading would be affected byi increased interest rates and

higher salary and administra tive costs.

Esanda’s ability to. maintain profit growth in its latest year is unlikely, however, to be repeated by its parent.

Although the A.N.Z. increased group net profit 39 per cent in the March 31 six months, the directors said at the time the group’s result for the full period would be about the same as that earned in 1973.

In 1972-73 the A.N.Z. lifted its profit 30 per cent to a record $22,279,000.

The Esanda directors say in their preliminary report that the latest result is “satisfactory,” considering the tight money conditions and high interest rates which prevailed during the year. They say current conditions inhibit long-term fund raising and this situation does not encourage a significant expansion in receivables during the year to September 30 next.