PGG Wrightson Finance has reported a $3.3 million interim profit, back slightly on a year earlier, but after increasing allowances for impaired assets.
Company chief executive Mark Darrow said core trading results for the six months to December 31 were up on the previous corresponding year, but after allowing for international accounting adjustments and provision for $3.1 million for impaired assets, the result fell from $4.7 million reported for the previous corresponding period.
The company's performance was underpinned by two key measures, Mr Darrow said.
The net interest margin increased 30% on the pcp and the long-term reinvestment rate was 77%.
These results made a statement about the strength of the company's business model, he said.
In the period under review, $33.8 million in extra capital was injected by parent company PGG Wrightson and new cornerstone shareholder Agria Corporation, enhancing the capital base in anticipation of requirements for the Non-Bank Deposit Takers legislation.
Total loans at balance date were $551 million, compared to $531 million pcp, but back slightly on the $561 million reported at June 30, 2009.
Negotiations were completed with a banking syndicate to extend wholesale funding lines for a further two years.
As part of governance restructuring announced last week, a new board will oversee PGG Wrightson Finance.
It will be chaired by independent director Mike Allen and the other board members will be Noel Bates, Bill Thomas, Michael Thomas, Tao Xie and Tim Miles.
