Lombard doubles annual profit

Lombard doubles annual profit

The $4.8 million net profit is a strong result in a competitive finance market;

100:1 share consolidation to take place

30 May 2007 – Financial services provider Lombard Group Limited (NZX-LOM) has posted an audited pre-tax profit of $7.73 million for the 12 months to 31 March 2007, up from $4.0 million in the previous year, and net profit after tax of $4.86 million, up from $2.34 million.

Over the same period the company’s principal business – specialist property financier Lombard Finance & Investments Limited – posted a net profit after tax of $5.84 million, up from $3.24 million. Loans and advances remained stable at $161.2 million ($163.8 million 2006) and cash held remains strong at $19.7 million.

Group Shareholders’ equity (net of intangible assets) increased $8.5 million over the period to $25.1 million (13.3 percent of Total Tangible Assets).

Lombard Group chairman Sir Douglas Graham said the result was particularly pleasing given the highly competitive finance sector.

“This is an excellent result considering the challenging trading conditions during the period and is a reflection of Lombard’s strong relationships and sound lending practices."

Share consolidation

Lombard Group will consolidate its existing shares in the ratio of 100:1. The record date for consolidation will be Friday 15 June 2007, with NZX trading on a consolidated basis from Monday 18 June 2007.

“The board has had Lombard Group’s share structure under consideration for some time,” Sir Douglas said.

“It was a carryover from the period prior to Lombard’s ownership of the company that the number of shares on issue was so great."

“The consolidation is intended to better align shareholders’ numbers with the company’s value and comes at a time when we are actively pursuing some positive opportunities for the company which we hope to announce soon."

New holding statements for each shareholder will be sent on Wednesday 21 June 2007.

Any fractional entitlement to a new share will be rounded up. As an example, a shareholder holding 10,000 shares now, will after consolidation hold 100 shares.

Sir Douglas said the board was interested in providing opportunities for a wide range of shareholders to participate in the company.

“We are conscious that following the consolidation some shareholders will end up holding only a few shares. For shareholders concerned about having a small parcel of shares, the company intends to provide a facility that will enable them to top-up or sell their holdings without incurring brokerage costs. Details will be announced in due course."

ENDS

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