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Greetings from the CEO Simon Thompson - 30 March 2012

The earthquake that rocked Christchurch on February 22nd has left an indelible mark on all New Zealanders who share in the sadness and trauma of the folks in Christchurch, many of whom have lost loved ones, family and/or friends.

Our hearts also go out to Japan, which is still in shock and suffering loss of lives in the earthquake of northeast Tokyo.

Some Lock Finance clients have suffered damages to their business premises as a result of the earthquake. We sympathise with them and will work closely with them to ensure they continue to receive our commitment to helping them resume their business. There are obvious disruptions to the business for many clients. We are hopeful these can be overcome in time.

The economic impact of the earthquake on Canterbury and New Zealand will take time to unfold. The Reserve Bank on March 10 announced a 50-basis point cut in the official cash rate to 2.5%. Governor Alan Bollard’s pre-emptive rate cut is made in anticipation of a weak economy during 2011. The lower interest rate should provide a kick-start to the slow turnaround in the economy, indicated by the September quarter’s 0.2% fall in GDP.

Global liquidity remains tight. The good news amidst all of this is that Lock Finance has secured an additional $15 million in funding for small and medium scale enterprises. Of this, $10 million will be made available for invoice finance and the other $5 million for traditional asset-based finance.

This puts us in a good position to actively offer solutions for companies that are in need of additional cashflow. While normal lending criteria applies, we hope to be able to offer competitive solutions for companies seeking cashflow to fund recovery or exit strategies, and companies seeking to expand.

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