Dunedin-based Motor Trade Finances was probably in a better position than it had ever been in to face the future, managing director Angus Bradshaw says.
"With the funding issues of recent years behind us, the board and management can now concentrate on executing growth strategies and looking for further opportunities to improve performance and increase returns to shareholders."
The company reported a profit before commission and other gains or losses of $17.9 million for the six months ending March, up 9% on the $16.5 million reported in the previous corresponding period.
Profit after tax and distributions was $2.4 million, down from $2.9 million.
Sales were tracking marginally ahead of last year and in recent months had shown encouraging signs of continuing improvement, Mr Bradshaw said.
"Business and consumer confidence remains fickle and demand for credit is likely to remain inconsistent for some considerable time."
Market share, measured by registrations, was 12.5% for March, an improvement on a previously steady 10%.
Total assets at balance date were $404.9 million. The fall in finance receivables had slowed, with total finance receivables down only 2.8% since September 2011, he said.
The credit contract book had been growing solidly since September with both credit quality and income indicators meeting performance targets.
"The focus on credit quality in recent years has continued to produce excellent results," Mr Bradshaw said.
The 31-plus day arrears continued to improve and at reporting date stood at 0.93%. That had been achieved through a systematic review of origination procedures to ensure quality, well documented lending to desirable customers and through improved reporting and active management.
Increasing regulation, a tough credit environment and the need to completely rebuild MTF's funding platform, at a time when volumes of new business had been significantly down, meant resources had been stretched and sometimes unable to meet all expectations, he said.
Since 2007, staff numbers had been constant, operating expenses maintained at the same level while the company delivered improved returns as measured by returns on assets and returns on equity, Mr Bradshaw said.
