26 Feb 2010

Pyne Gould Corp back in profit

1:02 pm on 26 February 2010

Pyne Gould Corporation has returned to profitability, making a surplus of $10.1 million in the six months to December.

That compares to a loss of $17 million in the same period a year earlier.

Last year, Pyne Gould raised $273 million to fund its expansion into banking and funds management.

Its main subsidiary, Marac Finance, made a pre-tax profit of $8.2 million, due to stronger lending for cars, though it says business loans remained constrained.

The company's other unit, Perpetual Group contributed $3.7 million, while Pyne Gould's 18% stake in PGG Wrightson contributed $400,000.

Pyne Gould chief investment officer Craig Stephen says the result reflects that the worst of the downturn is over.

Looking ahead, Pyne Gould says it's on track to make its forecast full year profit of $20.9 million.