K1.2m H1 loss: Credit Corp

Business, Main Stories

CREDIT CORP (PNG) Ltd has recorded an overall after-tax loss of K1.2 million for the half-year to June.
In a one-page advertorial published in The National yesterday, chairman Garth McIllwain said the result was considered “most satisfactory” especially when viewed against the negative backdrop that prevailed due to the world economic crisis.
According to Mr McIllwain, the negative adjustment of K58.54 million to the half-year profit and loss account was due to drops in the Bank South Pacific share price.
“So far as the investment segment is concerned, the 9% equity investment in the Bank South Pacific Ltd capital structure continues to be affected by what appears to be a sentiment uncertainty on world wide stock exchanges,” he said.
“Light volumes of trade recorded on the Port Moresby Stock Exchange have featured in the period under review.
“As of Dec 31, 2008, the BSP share price was A$0.99. As of June 30, 2009, the share price was A$0.85 resulting in a negative adjustment of K58.54 million to the half-year profit and loss account,” Mr McIllwain said.
But he was certain the company would pull through before the year ended, especially when its Port Moresby property portfolio, which consisted on Credit House and the 93 Era Dorina executive apartments and town houses, continued to perform profitably.
 “The Credit Corp group is well-placed with a strong capital base and a strong liquidity,” Mr McIllwain said..
“Indeed a capital base of K609.82 million places the Credit Corp group amongst the largest corporations operating in PNG and the Pacific.
“This places the financing activities in an enviable position here.”
Mr McIllwain said their company was the largest traditional asset purchase finance company in the country and Fiji and the only such company operating in Solomon Islands and Vanuatu.
 “Historically, the second-half of each year produces increased business volumes and profitability and evidence to date indicate this experience will continue for 2009,” Mr McIllwain said.