SCY Chart

[Snoopy]

Half year Finance profit was $1.84m out of $2.10m

Just done a quick EBIT to segment assets ratio for SCY finance. Assuming:

1/ the finance division EBIT is $5m (maybe a bit high)
2/ Smithcorp Finance Assets are $1m + $42.2m + $29.1m = $72.3m

Then EBIT /Segment Assets = $5m / $72.3m = 6.9%

Using just the end of year balance to calculate this is suspect. But compared to the previous year the changes are small. So I think it is fair in this case.

Compare that to the equivalent figure from Dorchester Pacific and Turners (my post 983 on Dorchester thread). (I admit that comparing motor vehicle finance with household item finance is not an apples with apples comparison.)

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So the FY2014 EBIT for the DPC finance division is $3.360m - $0.01014m = $3.350m

We also are told the segment assets for the finance division total $37,953m at years end.

So EBIT /Segment Assets = $3.35m / $37,953m = 8.83%

Now compare this with the equivalent TUA finance division result:

TUAF FY2013 ($1.861m-$1.151m+$1.926m) / ($10.684m + $14.916m) = 10.3%

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Despite SCY making most of their profit through finance, - Smithcorp Finance is Smith's City's declared golden goose- , it does seem that the SCY finance division is not as fundamentally profitable as that run by Dorchester Pacific or Turners, both in the motor vehicle lending market.

SNOOPY