McMillan Shakespeare says Interleasing buy a winner

Remuneration services group McMillan Shakespeare's acquisition of Interleasing has proved a good buy, with the leasing business making a strong contribution to group earnings in 2010/11.

McMillan Shakespeare bought Interleasing, a vehicle and equipment finance company that was once part of General Motors' GMAC division, in April 2010.

McMillan Shakespeare's chief executive, Michael Kay, said that the business was in "steep run-off" when it was acquired.

Kay said: "We have transitioned asset management [Interleasing] from a book in run-off to a fully operational and growing business."

McMillan Shakespeare yesterday reported a 56 per cent increase in net profit for the year to June. Earnings per share were up 55 per cent. Return on equity was 43 per cent.

Remuneration services contributed $31.6 million and asset management contributed $13.5 million to net profit.

In the asset management division, operating lease assets increased from $202 million to $210 million.

Kay said the group was getting cross-sell between its two divisions, as remuneration services' customers with novated lease arrangements were now getting their finance from asset management.

The group signed 106 new business contracts during the year.

Kay said the integration of Interleasing was complete, except for IT and telephony, which would be completed by the end of the current financial year.