Hanover says it’s prepared for tough times ahead

Hanover Finance, New Zealand’s largest privately owned finance company, is predicting a difficult year ahead but says it is in a strong financial position and is well placed to manage the business through hard times.

The company has just released a new prospectus announcing an after-tax profit of $44.9 million for the year to June 30 – up from the previous year’s after-tax profit of $41.8 million.

Chairman Greg Muir said the result had been achieved on the back of a strong loan book and liquidity management.

During the year the company increased its cash and cash equivalent reserves from $85 million in the previous financial year to just under $150 million.

Muir said the cash reserve was unlikely to remain at the $100 million mark but the plan was to “maintain the right level of liquidity” to balance it off with its loan book.

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