27 Aug 2008

South Canterbury Finance pre-tax profit up 75%

2:01 pm on 27 August 2008

The sale of a stake in Dairy Holdings has helped South Canterbury Finance to increase its full-year pre-tax profit by 75%.

South Canterbury made $82.7 million in the year to June, which includes a $40 million gain from the sale of almost 13% of Dairy Holdings.

However, profit fell by almost $5 million from the $47 million it made the previous year when that is excluded.

Chief financial officer Graeme Brown says a $4 million increase in bad debt provisions and the cost of keeping greater cash reserves contributed to the drop.

Mr Brown says South Canterbury Finance's reinvestment rate is still strong at 63.7% and it has increased its assets by 22% to $2 billion.