Fisher & Paykel Appliances Holdings Ltd yesterday warned the market that the business may soon need to sell new shares and raise capital, mainly to ensure viability of the whitegoods' maker at a time of declining sales, mainly in export markets. The finance arm will also need extra capital, perhaps NZ$50 million, though not until 2010 F&P said in a market update published through the NZX. This is more than double the finance subsidiary's existing capital base. F&P Finance had assets of NZ$385 million at September 2008 and reported a profit of NZ$3.8 million for the year, down about 40 per cent on 2007. The introduction of the crown guarantee on its debentures stabilised the funding base of F&P Finance since late 2008. The firm said that it increased retail deposits by more than NZ$100 million, that reinvestment rates in retail debentures exceeded 90 per cent in January and that the debenture book now exceeded NZ$195 million. F&P Finance has NZ$275 million in undrawn banking facilities. The firm said the extra capital would be needed to conform to the new regulatory regime on finance companies in New Zealand. F&P confirmed it would seek a credit rating. F&P is a supplier of retail finance to support sales of its own products, as well as the Farmers Card and Q Card payment cards. Early last year F&P dropped plans to sell the finance arm after it could attract no suitable bids. Meanwhile the holding company said it was reviewing its capital structure and examining a range of potential capital sources. The company says that if an equity raising is conducted, it expects it would include a pro rata entitlement offer to shareholders.