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Western Bay Finance Announces $1.2 Million Profit

Published: Thu 18 May 2006 09:38 AM
May 18, 2006
Western Bay Finance Announces $1.2 Million Profit
Western Bay Finance has announced an unaudited annual operating surplus in excess of $1 million before tax.
Director Jim Smylie says the 2005 result is pleasing.
"Earlier in the year I predicted that many finance companies would report lower profits this year due to new International Finance Reporting Standards, new Consumer Credit legislation, and tougher market competition. We are seeing the fall out from this now as results are announced. As expected, Western Bay Finance, in these difficult trading conditions, is in profit."
Smylie says many firms, including Western Bay Finance, have spent heavily to comply with the effects of the new reporting standards and the new Consumer Credit legislation.
"These hurdles are behind Western Bay Finance now and it is well positioned to succeed in what is going to be a challenging market.
Smylie did say the excellent profit included a one-off gain by the inclusion of the value of its bad-debt ledger for the first time.
"Western Bay Finance is well placed. Our investors are happy that we are offering highly competitive interest rates and appreciate that our average loan size is $7000. It's a sound approach which has delivered excellent returns for investors and profits for the company for nearly two decades."
Smylie says after the September 2005 half-year result of $22,000, prudent and immediate management initiatives were put in place to improve profit margins.
Those steps included closing five branches, consolidating staff levels and introducing more stringent credit controls.
Smylie says that the new credit control structure has already resulted in a lowering of the company's Provision For Doubtful Debts.
"We look forward to many more sound and profitable years in the future."
ENDS

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