F and P Finance lowers rates

Press, 7 June 1983, Page 29

F and P Finance lowers rates

F and P Finance, Ltd, has reduced interest rates being offered on its first ranking debenture stock. The top rate now quoted

is 15.5 per cent a year for investments of less than $lOO,OOO for 24 to 30 month terms. The margin previously offered for investments between $20,000 and $lOO,OOO has ended. The fixed-term-and-then- at-call investments options have also been withdrawn.

“The company’s reduction of rates reflects the downward movement in the market,” it said in a statement. The directors also announced that F and P Finance, Ltd, a whollyowned subsidiary of Fisher and Paykel Industries, made a tax-paid profit of $1,455,000 in the year to March 31. The result is an increase of 13.8 per cent on tax-paid profit of $1,278,000 for the 12 months to March 31 last year, and includes a share of retained profits of associated companies amounting to $157,000.

It represents an earning rate of 22.8 per cent (32.0 per cent in the previous corresponding year) on average shareholders’ funds.

The result, which is audited, was before taking into account extraordinary items of $636,000 ($26,000), arising

from the sale of investments. Provision for tax was $485,000 ($419,000), of which $96,000 ($372,000) was for deferred tax. Income from rental, financing, investments and sales was $16,749,000 ($13,388,000). Total assets of the company at balance date were $60,726,000, compared with $46,607,000. During the year, paid capital increased from $3,000,000 to $3,500,000 and shareholders’ funds from $5,430,000 to $7,353,000. The directors recommend payment of a dividend of 16 per cent, requiring $560,000 ($480,000) and covered 2.6 times by profit. During the period, demand for consumer finance continued to be strong. Margins were affected by holding lending rates, as required under the Financial Services Regulations, and increasing costs of borrowing. The company expects the demand for consumer finance to continue in the current year and the costs of borrowing to decrease in line with. the expected reductions in interest rates.