Hubbard injects $40m into SCF

Based on conservative assumptions a $58 million provision (non-cash) will be taken for non-performing investments and doubtful property assets in the financial year to 30 June 2009. As a result SCF now expects to report a net loss before tax of approximately $37 million for the financial year. Prior to the write-down, a net profit before tax of $21 million was projected.

The group is budgeting a net profit before tax of $18 million to $22 million for the 2010 financial year.

Chief Executive Lachie McLeod says the strength of the group's shareholder, Hubbard, helps set it apart from many other finance companies and provides the resources to maintain the financial stability of SCF through challenging times.

The property market has become more difficult in the last six months and conditions have deteriorated more than anticipated, McLeod says.