Increase In Profit For Dominion Finance Holdings
10th May 2006
17.18% Increase In Profit For Dominion Finance Holdings
The finance company sector is a strong and essential part of the New Zealand economy.
Dominion Finance Holdings Limited (DFH) has reported another improved net profit performance for the year ended 31 March 2006 with an increase of $1.313 million to $8,960 million, an increase of 17.18%.
Chief Executive Officer Terry Butler was pleased with the result, particularly with the purchase of North South Finance (NSF) which had increased total group net receivables to $302.8 million.
“DFG net receivables had increased by $63.5 million for the year, this increase was achieved during a period when some commentators had been predicting a potential recession in the New Zealand economy.”
Butler says enquiry over the past six months has increased despite the doomsayers endeavours to talk the economy into a recession, and the start of this financial year has been positive.
“We accept that the economy is slowing and while that may drive some from the market, the good operators will also see that as an opportunity to grow and it is this market that both DFG and NSF will concentrate on.
“The finance company sector is a strong and essential part of the New Zealand economy, and has grown extensively over the past few years. While a lot of this growth has been in the consumer area it has also been driven by demand from business and other related sectors for access to capital to increase and improve their businesses. We make no apologies in supporting the country’s growth.
“Looking ahead, we will continue to see a consolidation in the finance company sector, and while DFH is in a sound position to view other merger and acquisition opportunities, we will only do so where we consider there is an obvious synergy with our current businesses. It is not growth for growth’s sake - any acquisition must be meaningful and profitable for shareholders.”
Key Points are:
- Net Profit after tax for the Group for the twelve months ended 31 March 2006 was $8.96 million. The profit was wholly generated in DFH’s subsidiary Dominion Finance Group Limited (DFG) whose profit for the same twelve month period in the previous year was $7.6 million.
- Total revenue for the year was $30.6 million compared with $24.8 in the previous year an increase of 23.5%
- The Company successfully completed the purchase of North South Finance Limited on 31 March 2006.
- The Consolidated Statement of Financial Position includes NSF, but income from NSF will be reflected in the 2007 accounts.
- Total net finance receivables for DFG increased by $63.5 million and now stand at $213.5 million an increase of 42.3%
- Total net finance receivables for the Group now stand at $302.8 million
- Total Assets now stand at $375.8 million
- Shareholders Funds have increased to $38.9 million
- The Company completed a successful Capital Notes Issue in March 2006 raising $40 million.
- The Directors have resolved to declare a final fully imputed dividend of 4.90 cents per share and will be paid on 02 June 2006 to shareholders registered at 5.00pm on 26 May 2006
- This takes the total dividend paid for the year to 7.6 cents, fully imputed, up from 6.9 cents last year.
- Shares on issue total 60,818,100