Peach doubles annual profit

Peach Holdings eased ahead today after the US specialty finance company reported a big increase in full year profits and said the current year has started “encouragingly”.

The group, which listed in March, posted a pre-tax profit for the year ended 31 December of $37.1m, up 112% on the previous year, as adjusted revenue leapt 43% to $96.2m.

Boss Jim Terlizzi said strong figures were supported by “growth in the existing lines of business coupled with early success from several new product offerings.”

“Peach enjoys a leading competitive position that will drive strong return on equity and we are confident that we will accomplish our goal of building significant shareholder value in the next year,” he added.

“2006 has started off well and we anticipate continued growth in our core divisions and substantial expansion in some of our newer business lines,” added the group.

Originations in structured settlements and its other lines of business are in line with the company’s forecasts.

Two securitizations are anticipated in the second half, one in structured settlements, and one in life settlements, which will result in profits in the current year being weighted towards the second half.

New financing facilities amounting to $325m have assisted the performance, with the group strongly cash generative.

Peach is forecasting a dividend for the current year of $0.192 per share, amounting to not less than $20m.