General Finance improves quality of its loan book

In the latest prospectus the finance company has written off $448,666 in bad loans and as a result its provision for doubtful debts has fallen by $345,132 to $306,310.

Director William Cairns says this is a prudent move and reduces the company's pre-tax profit from $179,578 to $33,909 in the year to March 31.

"Unlike our competitors we have quickly made provisions when required and restructured our lending portfolio."

He says General Finance has managed its liquidity well too. The company had just over $4 million of cash on hand at year end, compared to $1.8 million the previous year.