Record profit by BNZ Finance

Press, 9 May 1981, Page 19

Record profit by BNZ Finance

BNZ Finance Company, Ltd, has reported a 40 per cent increase in audited net consolidated profit to $1,633,000 ($1,168,000) for the year ended March 31. The record profit was after providing for taxation of $1,559,000 ($745,000) and is equivalent to a return on average shareholders funds of 20.1 per cent (17.8 per cent) and on average capital 41.8 per cent (36.2 per cent), the chairman of directors (Mr G. A. Chapman) announced. Mr Chapman said that during recent years tremendous progress had been made in the profitable expansion of the company's operations. The return on average shareholders funds has increased from 6.6 per cent in 1976 to 20.1 per cent in 1981 and

total assets have increased over the same period from $26.8 million to $134.5 million, with net receivables increasing from $16.7 million to $50.9 million. In the 1981 year, in particular, business volumes continued to increase throughout the group and profitability benefited from the expanding business base and operating efficiencies. Although strong competition for funds was experienced during the year the company’s issues of debenture stock continued to be well supported and the stock on issue increased from $44.7 million to $58.6 million by 7 March 31. On July 1, 1980, BNZ Finance Company debenture stock qualified for Authorised Trustee Investment status and issues since July, 1980, have attracted considerable interest from trustees and investors generally, Mr Chapman said. “In view of the fact that the company has continued to maintain profitable growth the directors have resolved to recommend an increase in the fin '.l dividend to 12.5 c a share (9c a share) making a total dividend for the year of 20c a share (16c). “This represents a substantial increase in the annual dividend rate.. For the 1980 year dividends paid of $516,000 were covered 2.3 times and for the 1981 year total dividends paid will amount to $815,937, covered twice. It is proposed that shareholders will have the option of receiving 10c a share of the final dividend as a taxfree distribution.