Quote Originally Posted by Tony Two Gloves
Finance Direct has a seperate Prospectus so the amount of debenture funding for NZF Money will remain unchaged.
Yes, you are right - they are a separate division. I confused the consumer finance activities of NZF Money with Finance Direct. I should have added in the $6m of Finance Direct retail debentures to the combined NZF Money/Finance Direct borrowings ... the bottom line is that they currently have about $21m retail debentures with $13m plus whatever they cleared from Finance Direct in direct equity.

Collapsing a retail debenture finance business from about $84m to $34m and suffering $2m in impairments (with the potential for another $2m) has got to be judged as completely amazing - given this was done over 2009/2010!

They have $9.7m of intangible assets on the books (probably held as the assets in Management & Holding activities division). This was written down by over $6m in the last year due to revaluation of the Pero intangibles. The fact is that this could go to zero, over two years, and absorb the next two years profit. The fact remains that the profitability of the Home Loans division, alone, probably justifies more than this amount of intangible asset to be written back!

One final point - the effect of the issuance of the new capital notes had the effect of converting $2m of debt to equity. This saves over $180k pa in direct interest expense. Reduction of the note interest rates on the $18m of notes saves over $300k pa in interest expense. They have trimmed $500k pa in interest expenses - enough for a 0.5cent per share increase in NTA pa - a 16% increase.