Business / Companies
Results of TN Holdings's AGM and Trading Update
26 Aug 2011 at 07:08hrs | Views
A surprising turnaround from TN Holdings, recording an attributable profit of $5.7 million for the interim period. The turnaround was driven by the recovery in the Banking division and the Manufacturing and retailing operations with contributed $1.3 million and $6.7 million to group PBT.
Non-funded income contributed 70% to total income for the bank. The cost to income ratio for the bank improved to 80% from 98% although it remains high due the retail banking rollout. The bank operated from 22 branches with a further 20 to be opened by end of year. Gross profit margins were 62% for the Manufacturing and Retailing unit and operating profit margins improved to 37% as opex were well managed.
Loan to deposit ratio was at 98% and the group targets a loan to deposit ratio of 70%.
Provisions to total book were at 4%. Consumer loans grew significantly to comprise approximately 70% of book. Collections for the furniture retailing book are above 96%.
The group expects deposits of approximately $100 million by 31 December 2011.
The consumer book was at $7 million and should end the year at approximately $12 million. Gross income is expected to reach $50 million for FY 2011.
The group recorded significant growth in the period. Although TN Holdings is a group still in evolution, the strong performance if maintained can provide a base for solid growth.
The scrip is tightly held with average daily volume of less than 150,000 shares. Spec Buy.
Non-funded income contributed 70% to total income for the bank. The cost to income ratio for the bank improved to 80% from 98% although it remains high due the retail banking rollout. The bank operated from 22 branches with a further 20 to be opened by end of year. Gross profit margins were 62% for the Manufacturing and Retailing unit and operating profit margins improved to 37% as opex were well managed.
Loan to deposit ratio was at 98% and the group targets a loan to deposit ratio of 70%.
Provisions to total book were at 4%. Consumer loans grew significantly to comprise approximately 70% of book. Collections for the furniture retailing book are above 96%.
The consumer book was at $7 million and should end the year at approximately $12 million. Gross income is expected to reach $50 million for FY 2011.
The group recorded significant growth in the period. Although TN Holdings is a group still in evolution, the strong performance if maintained can provide a base for solid growth.
The scrip is tightly held with average daily volume of less than 150,000 shares. Spec Buy.
Source - Imara Stockbrokers
