Broadlands expected to show dramatically improved result

Broadlands previous auditor, BDO, had insisted the accounts for the year ended March show an $11.84 million allowance for impairment against gross finance receivables of $35.35 million.

Broadlands managing director Rudi Kats says the company was unhappy at what it regarded as BDO's excessive conservatism and so sought a second opinion from KPMG. After gaining that second opinion, the company decided to change auditors and appointed Grant Thornton.

A draft copy of the September accounts, which are audited but which aren't expected to be signed off by Broadlands' board until late next week, shows gross finance receivables had fallen to $34.07 million but the allowance for impairment had more than halved to $5.17 million.

This change has dramatically boosted Broadlands bottom line to a near $4 million net profit for the six months ended September compared with the $1.85 million net loss it reported for the year ended March.