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Announcement

GENERAL: GFL: GENEVA FINANCE Media Release Sep 16 Results

14 Dec 2016 11:24NZX
Media Release 14 December 2016

GENEVA FINANCE ANNOUNCES HALF-YEAR RESULTS:
AFTER-TAX PROFIT UP 56% ON 2015

Geneva Finance has announced an after-tax profit of $2,357,000 for the six
months to 30 September 2016, an increase of 56% on the same period in 2015,
while revenue from ordinary activities was $7,536,000, a 31% gain on 2015.

Managing Director, David O''Connell said, "This result, which confirms the
company is now positioned for a period of sustainable profitability, has been
achieved contemporaneously with the payment of the group''s maiden dividend of
1.5 cents per share, and the seven-for-one share consolidation.

"Individually and collectively these three outcomes have added shareholder
value and demonstrate the board''s commitment to balance the requirements of
the company, to finance its expansion and a desire to reward our shareholders
for their ongoing support."

The group''s pre-tax profit of $1.8m (up 72% on last year) comprised a trading
entity pre-tax profit of $2.6m, less group overheads of $0.9m. A deferred tax
asset of $0.6m was recognised during the period, resulting in the after-tax
profit of $2.4m.

"Sustained lending growth growth, 12.5% up on last year (which was 26% and
61% up on March 15 and March 14 respectively), has seen the receivables
ledger increase to $55.3m which - in conjunction with maintenance of interest
yields and control of asset quality - resulted in a $2.0m profit from lending
for the six months. This is a 73% increase on last year," Mr O''Connell said.

Quest Insurance Group Limited (Quest) Premiums increased 70% to $1.6m due for
the most part to the reintroduction of Mechanical Breakdown Insurance and the
recommencement of Comprehensive Vehicle Insurance in the second half of 2015.
The profit after tax improvement to $445k (+43%), is a result of this revenue
growth in conjunction with a rise in investment income. Operating costs and
claims incurred were within expectations.

Increased lending (+12.5%) and insurance sales (+70%) contributed to slightly
higher operating costs of 11%, to $3.5m, on the previous year.
Group total asset grew by 26% to $76m (the company''s equity to total assets
ratio amounts to 28.7% vs. 29.3% in the prior year).

Mr O''Connell said the group is in the process of upgrading its loan
management, sales delivery and collections platforms.

"This has been a focus of the last six months and will continue to be so for
the next twelve months and beyond as we see increased use of technology as
essential to delivering on our goal of ''making life easier'' for our
customers, improving customer service levels and supporting the expansion of
the group''s lending, insurance and collections services."

"Delivering a $2.4m profit for the six months (56% up on last year), coupled
with the group''s conservative debt ratios and now sustainable profitability,
reinforces that the group is well positioned for the right acquisition
opportunity." Mr O''Connell said.

ends

For more information:
Alexander PR
Kate Alexander
+64 (0)27 244 6094
kate@alexanderpr.co.nz

About Geneva Finance Limited
Geneva Finance is a 100% New Zealand-owned finance company that provides
finance and financial services to the consumer credit and small to medium
business markets.
The company provides hire purchase finance, and personal loans secured by
registered security interests over personal assets such as motor vehicles and
household goods (e.g. furniture and appliances). Geneva Finance has been
providing funding for family vehicles at competitive rates and a quick
approvals process since 2002.
Geneva Finance Limited (GFL) is a listed company on the New Zealand Stock
Exchange (NZX alternative market, NZAX).
End CA:00294283 For:GFL    Type:GENERAL    Time:2016-12-14 11:24:41
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