Credit Corporation (Vanuatu) Limited
Credit Corporation (Vanuatu) Limited recorded a profit of Vatu 37.50m (K0.99m), a lower result over the 2010 profit of Vatu 68.24m (K1.51m). Our balance sheet remains strong with an increase in shareholders' funds to Vatu 428.19m (K9.76m).
The decrease in profits reflects a slowing in the economy with reduced activity in the major tourism and land development sectors having a negative impact. Commodity exports have also seen a decline over 2010.
In the last six months, we have focused on reviewing and consolidating our business which is necessary after our first three years of steady growth and expansion since operations were established in Port Vila. The process has been slowmoving but results are evident and more effort will be concentrated in this area for the remainder of 2012. Within this we have implanted more stringent lending conditions which have contributed to reduced volumes of lending.
The sluggish economy combined with the inability of second hand car dealers to provide backup parts, has also contributed to our slower growth.
The year has seen the successful implementation of the new IT system and staff levels have remained steady at six. Staff training has been ongoing and skill levels continue to improve. A staff member had the benefit of a week hands-on training in Suva office which augurs well for his progression to a more senior role.
The emphasis on clearing overdue accounts has forced us to re-look at our lending target areas. We are now moving away from the core transport sector (mostly buses and taxis) with a view to placing more emphasis in the corporate sector where we have started to make some inroads. Additionally, we are in the process of discussing new initiatives with the major motor dealers which may help stimulate further growth for the business.
Whilst we have had a slow down in profitability we are optimistic of an improving position going forward, although 2012 will continue to see subdued results. We are determined to take advantage of the limited opportunities that are available and look forward to maintaining our strong presence in this unpredictable market.