Former finance firm completes full circle
Listed non-bank finance company GFNZ Group plans to revert to its old name of Geneva Finance and boost its share price.
Monday, June 20th 2016, 2:36PM
GFNZ Group says it will revert to its old name of Geneva Finance and carry out a seven-for-one consolidation to boost its share price.
Geneva, as it was formerly called, was one of the first finance companies to go into a debt moratorium at the start of a string of company collapses in this sector in 2007.
It is one of the only large scale finance operation that successfully exited moratorium, paying its investors between 11% and 13% interest each month and repaying a total of $169 million (including $42 million of interest) to those investors.
The company says "the key benefit of returning to the Geneva brand is delivering a more positive connection with our key stakeholders and thereby adding improved value to shareholders."
It says the key values associated with the brand are trust, integrity and a "high level of consumer and market recognition."
The company posted a 61% gain in annual profit to $3.5 million for the year ended March 31. Geneva Financial Services grew its loan book by 26% to $48.8 million. At the same time, it widened its margins, generating $5.8 million of net interest income, or 63.3% of total interest income, compared to $3.4 million, or 52.7% of total interest income, a year earlier.
Under its 7:1 share consolidation proposal the 493 million shares on issue will reduce to about 70.4 million, lifting its share price from the current level of 6c each to between 41-42 cents each..
"The board considers this will benefit all shareholders by moving the share price away from the sub 20 cents per share range and thereby enhance the credibility of the company with the markets," it said.
The company has set July 5 as the ex-date for the consolidation, with the shares going into a two-day trading halt. July 6 would be the record date for the consolidation and the shares would resume trading on July 7.
| « Wellington Airport issues bonds | Term deposits offered via Consilium platform » |
Special Offers
Comments from our readers
No comments yet
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
