Otago Daily Times

Heart­land profit forecast may lift af­ter Har­money float

- JAMIE GRAY

AUCK­LAND: Heart­land Group said its profit forecast for 2021 may need up­ward re­vi­sion to re­flect the value of its 8.44% stake in per­sonal lender Har­money, which listed on the ASX and NZX this week.

At the $A3.50 is­sue price, Heart­land’s stake would be worth $A29.8 mil­lion ($NZ31.4 mil­lion).

In its most re­cent ac­counts, Heart­land’s eq­uity in­vest­ments — mostly Har­money — came to $NZ16.3 mil­lion.

Heart­land said it was re­assess­ing the val­u­a­tion of its eq­uity in­vest­ment in Har­money.

Heart­land has en­tered into es­crow re­stric­tions pro­hibit­ing the dis­posal of its share­hold­ing un­til the oc­cur­rence of cer­tain events.

‘‘Heart­land will re­assess the fair value of its eq­uity in­vest­ment in Har­money as part of the prepa­ra­tion of its fi­nan­cial re­sults for the six­month pe­riod end­ing 31 De­cem­ber, 2020,’’ the com­pany said.

In de­ter­min­ing fair value, it would take into con­sid­er­a­tion the mar­ket value of Har­money shares along­side a range of other fac­tors.

This could re­sult in an in­crease in the in­vest­ment’s fair value.

Heart­land said its in­vest­ment in Har­money was not sig­nif­i­cant in the con­text of its to­tal as­sets.

How­ever, as an in­crease would give a one­off boost to net profit that had not been taken into ac­count, its forecast net profit for 2021 might need to be re­vised.

In Septem­ber, Heart­land an­nounced a full­year net profit of $72 mil­lion, and said it ex­pected its net profit for the June 2021 year to be in the range of $83 mil­lion to $85 mil­lion.

Har­money on Thurs­day gained a pri­mary list­ing on the ASX and a ‘‘for­eign ex­empt’’ list­ing on the NZX. — The New Zealand Her­ald

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