Chief Executives Commentary
Instant Finance® is in its 45th year of operation so it is particularly pleasing to be able to report on another successful year and a record profit result for the financial year ended 31 March 2016
The audited tax paid profit was $8.463 million which was up 18% on the $7.164million achieved in the previous year.
Although market competition from banks and new market entrants remained intense, the Company was able to achieve modest asset growth with loan receivables increasing 3.8 % from $ 92.21 million the previous year to $95.72 million as at 31 March 2106.
Whilst 3.8% growth may sound somewhat underwhelming, it is important to realise that it takes a significant number of very small personal loans to generate an additional $3.5 million of growth !
Shareholders equity increased from $30.0 million to $31.7million as at year end.
Post balance date, the business assets of Christchurch based Fair City Finance Ltd were acquired. Fair City has been operating in Christchurch under the same ownership for 28 years and over that time has built a solid reputation as a responsible and prudent lender. It has a significant and loyal customer base in Canterbury and generates loans via its website and repeat business with existing customers.
The business will continue to trade under the Fair City brand as a stand alone division of Instant Finance® operating in the same market sector as My Finance.
The addition of the Fair City ledger has resulted in the Instant Finance® receivables ledger passing the $100 million mark which is another key milestone in the Company’s history.
The Company continues to perform well and remains focused on its customers and its core business of providing small personal loans to many who need a financial helping hand.
Notwithstanding increasing uncertainties in many parts of the world, management are confident of producing another sound result in the current financial year.
R J de Lautour