F&P Finance needs NZ$50 mln capital
17th Feb 09, 4:00pm
Fisher and Paykel Appliances warned its profit this year would be halved because of a slump in demand and said it was looking for a new cornerstone shareholder to inject cash so the manufacturer could reduce its debt. Fisher and Paykel Appliances said its debt increased by NZ$112 million because of the fall in the New Zealand dollar and its debt was likely to rise to NZ$570 million by the end of March. Meanwhile, it said its finance company, Fisher and Paykel Finance, had seen higher bad debts erode earnings over the last four months, but receivables grew over the last year. The government guarantee had allowed Fisher and Paykel Finance to grow retail deposits by over NZ$100 million to over NZ$275 million. Reinvestment rates were now over 90%, it said. However, Fisher and Paykel warned that it would need to raise a further NZ$50 million in capital early in 2010 to ensure Fisher and Paykel Finance met Reserve Bank minimum requirements under the new regulatory regime and achieved a credit rating. Fisher and Paykel cancelled plans for a note issue. Fisher and Paykel Appliance shares closed down 35% at 65 cents yesterday. See full statement here. * This article was first published earlier today in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.