Hanover looks to boost profit 20%

Hanover chairman Greg Muir says that any shakeout of marginal finance companies will be to the benefit of well managed and well governed finance companies.

He says the largest of the group’s four finance companies, Hanover Finance, is likely to post a 20% increase in before tax operating profit for the year to June 2006 representing profit before tax of $55 million (unaudited).

“While the profit figure is indicative, this would be a very impressive result in the context of the current environment,” Muir says.

“This clearly demonstrates to investors and the market in general that not all finance companies are equal. Those that have focused on, and invested in, good governance standards are well positioned to not only weather the storm – but to flourish.”

He says the Hanover Group has made governance issues its number one priority, rather than chasing growth.

Muir says a key element of the group’s approach has been to appoint independent directors (including himself), and that “investors are increasingly seeing the value of this.”

Hanover Group is actively supporting government regulation of the finance industry for finance companies through higher barriers to entry and for financial intermediaries through regulation.