Strategic's profit down 324%, NZ$53 mln of bad debts written off
25th Feb 09, 4:42pm
Strategic Finance, which is currently operating in moratorium, reported a net loss after tax of NZ$32.76 million in the six months to 31 December 2008. This compared to a loss of 15.7 million in the first six months of the year, and was down 324% from the six months to December 2007. Over the period to December 2008, Strategic said it had written off NZ$53 million of bad debts. Its operating income over the six months was NZ$29 million, down 16.4% from the same period in 2007. Total assets at December 31 were worth NZ$463 million (down 29% from December 2007) and total liabilities were NZ$422 million (down 22%). "Whilst the global and national markets continue to face a severe economic recession and the trading results have been heavily impacted as a result, SFL's management continues to be fully focused on maximising recoveries from the orderly realisation of its loan book," Strategic CEO Kerry Finnigan said. Strategic froze 15,000 deposits worth NZ$330 million in August 2008 before getting almost unanimous approval from investors just before Christmas to operate under a moratorium. To see a list of finance industry failures in New Zealand, see our Deep Freeze List here.