Strategic's profit down 324%, NZ$53 mln of bad debts written off

Strategic's profit down 324%, NZ$53 mln of bad debts written off
Strategic Finance CEO Kerry FinniganStrategic 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.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.