Personal loan provider, Instant Finance, has released its latest results for the year ended 31 March 2010, reporting improved results across all key indicators.
“Sticking with a trusted business model and a continued adherence to good risk management and governance practices has enabled Instant Finance to record an excellent financial result in difficult trading conditions”, said Instant Finance Chief Executive, Richard de Lautour.
The results, released today, show the Company recorded a net surplus after tax of $3.3 million for the year ended 31 March 2010. This result was significantly ahead of the previous year’s $1.092 million, which was adversely impacted by substantial one–off costs mostly relating to the establishment of committed wholesale funding lines.
Net loan receivables increased 17% from $55.4 million to $64.9 million during the period and as at 31 March 2010 the Company had gross instalments receivable of $89.2 million and 18,756 active loans.
Commensurate with the balance sheet growth, shareholder equity increased by 17% during the period from $18.641 million to $21.786 million at 31 March 2010. Shareholders continued to forego dividends over the period in the interests of increasing balance sheet strength.
Having repaid all remaining debenture holders in full in August 2009, the Company funds its operations entirely from wholesale lines provided by American-based Fortress Credit Corp.
Richard de Lautour noted: “As funding conditions and investor confidence in the industry continued to decline and the Treasury guarantees further distorted the debenture market in late 2008, it was no longer appropriate to bet the Company’s or our investors’ long term future on debenture funding. It was in the best interests of both investors and the Company that all remaining debenture holders were repaid early.”
Given the current certainty of funding and high levels of liquidity, Instant Finance is looking to expand its branch network and geographic footprint by either acquisition or the establishment of new branches. Part of this strategy saw the opening of the first South Island branch in Christchurch on 5 July 2010.
The new marketing partnership with rugby league legend, Stacey Jones, is proving popular with existing customers while also attracting significantly increased numbers of first time customers to both branches and the Company’s website.
Instant Finance, whose origins date back to 1971, has over 26,000 current customers and provides small personal loans through a network of 18 retail branches.