Pyne Gould's Jolliffe resigns; MARAC unit profit to drop

Friday 31st October 2008

Pyne Gould managing director Brian Jolliffe will step down on June 30, when the firm's transformation into a bank is expected to be complete.

Jolliffe also steps down as head of the company's MARAC Finance unit, which separately today predicted a drop in profit this year. He wasn't immediately available to answer questions.

A statement from chairman Sam Maling said Jolliffe is stepping down for lifestyle reasons. MARAC's annual profit will be below its 2008 result, when net profit rose 6% to $27.9 million.

MARAC's business "remains sound with strong liquidity and a focus on credit," the company said. "Notwithstanding credit related events occurring in the wider financial markets, in the year to 30 June, 2009, the company is still expecting a good performance, but one that is below last year's."

Pyne Gould plans to turn itself into a bank via its MARAC and Perpetual Trust units and is reviewing its investment in non-bank assets, such as its 22% holding in PGG Wrightson.

Pyne Gould stock fell 0.3% to NZ$3.64 and has gained about 17% in the past three months. Wrightson shares rose 4.3% to $1.69 and are down 40% in the past three months.

By Jonathan Underhill

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