Gen. Finance looks ahead

Press, 23 February 1980, Page 19

Gen. Finance looks ahead

General Finance, Ltd. expects a strong demand for its lending activities in the current financial year to October 31, according to the chairman (Mr A. H. Armour) in the annual report. However, a “spectacular” increase in profits was not expected in the lending because of rising overheads, and interest rates, he said. It was daunting that, internationally, economic gloom was forecast, and at home there seemed agreement that inflation and interest rates would rise in 1980. “However, General Finance has set carefully budgeted plans for the coming year.”

The group was expected to increased its investment and

improve profits in both television and car renting, and other group activities were also expected to make their contribution, Mr Armour said. During the year under review all trading areas increased in size and profit. In the lending division, loans outstanding rose 17 per cent, and the profit by a greater amount. Lending activities were restricted by Government enforced growth guidelines and by a greatly increased compulsory investment in government stock. General Properties N.Z. Ltd, increased its investment 19.4 per cent to $8.6 million. Fewer properties were subiect to rent in the latest year but rental income was up 12.4 per cent, he said.

I Group Rentals New Zealand. Ltd, maintained its i leadership in the television (rental field. Colour television (rental contracts, increased al[most 30 per cent. Budget-Rent-A-Car experienced a difficult year, beginning in February with petrol restrictions, followed by the grounding of DCIO aircraft world-wide, and the poor snow season, all of which affected tourist traffic. Mr Armour refers to the take-over bid made by Transvision Holdings Ltd. in Sep-j tember, which has since lapsed, but it would seem that the offer made by the National Bank of New Zealand last Friday was received after the annual report was printed.- The National Bank

■[offer is 230 c cash for each tiGeneral Finance share. 1 1 Group net profit rose 78.3 iiper cent to $3,628,000 in the ■(year to October 31, after [gross trading income increas- ■ ed 37 per cent to $35.0 mil- ■ I lion. J; Depreciation ,rost .$231,000 ’ito $3,077,000, but taxation '[fell $183,000 to $1,188,000. I A recommended final divid[end of 12c a share increases , the annual rate from 13c to JlBc a share (18 per cent). The .[dividend requires $1,963,000 .[and is covered 1.8 times by the profit. Shareholders' funds rose I $4.9M to 519.3 M. including share capital up $2,180,000 to $10,905,000 after the one-for- : four cash issue.