First City ahead

Press, 5 December 1985, Page 64

First City ahead

PA Wellington First City Finance, Ltd, the Auckland-based financier, more than doubled its net profit for the half-year to September 30 from $110,268 to $308,622. In its prospectus, released on October 12, 1983, the company predicted a net profit of $550,000 for the full year to March 31, 1986.

The company’s chairman, Mr David Johnson, said the group had revised its profit forecast upward so that the results for the year should be more than $1,250,000 before tax and $700,000 net. On this basis earnings would be

14c a share, he said. In spite of volatile interest rates and “intense” competition, First City’s assets grew from under $l9 million to $27.6M in the period. “We have deliberately maintained a high level of liquidity and have therefore been in a position to benefit whenever money market rates have been high.” Early this year, First City thought interest rates had peeked “They hadn’t. But they seem to have peaked now,” Mr Johnson said. Last week a number of financiers reduced their deposit rates.

“We’d like to think that with reduced yields in recent Treasury bill tenders -- and a reduced rate of infla- ( tion indicated in the last c? Consumer Price Index

figures, we’re now on the path to lower interest rates . - and a better balance between short and long term £ funding costs,” Mr Johnson said. w -

Without provision for sy deferred tax, the latest’ jt profit stood at $561,000 y ($200,488).

The directors have declared a 3c a share (3 per

cent) interim dividend, and in the prospectus predicted a rate of 7c a share for the

full year.