Instant Finance calls for comprehensive and credible rating system

Instant Finance chief executive Richard de Lautour says that a comprehensive and credible system of assessing finance companies needs to be implemented in New Zealand.

Monday, 3 July 2006

De Lautour says that with the withdrawal of Rapid Ratings from the New Zealand market “there is an urgent need to develop a methodology or system for assessing industry participants in order to reassure investors that their money is in responsible hands."

"Many investors are rightly concerned about the difficulties being faced by some operators in the finance sector, particularly those involved with the financing of motor vehicles through retail motor vehicle dealers."

Instant Finance has just reported an operating surplus before tax of $7.03 million. This is marginally less than last year’s $7.6 million surplus.

De Lautour says Instant Finance has “strong liquidity reserves”, with a positive liquidity profile and current cash reserves in excess of $9 million.

“We anticipate our operating surplus for the year ended 31 March 2007 will be below the 2006 result, due to lower loan activity resulting from a continued conservative lending approach in what is expected to remain a less buoyant business cycle,” de Lautour says.

"However, we have no doubt that the strength of our balance sheet combined with an experienced management team will provide Instant Finance with opportunities for growth over the medium term."

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