NZF Group posts $4.8m annual loss
That was up slightly from the previous year's $4.6 million loss and is NZF's third consecutive annual loss. The company says it "can only be described as another extremely difficult and challenging year for the financial services sector in New Zealand."
The loss was primarily due to its property finance division posting a pre-tax $5.4 million loss compared with an $0.9 million profit the previous year. Of the loss, $5.1 million was loan impairment and bad debt costs.
The company says the expiry of its government guarantee on October 12 last year "put unnatural pressures on cash flows" and its debenture funding fell to just $20.9 million at March 31 from $63.8 million a year earlier.
NZF says because of the pressure to repay debenture holders about $42.9 million, in some cases it had to conduct mortgagee sales at prices less than previously expected.
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