Dominion Finance Expects another Strong Year

Media Release
Embargoed Until 4.30pm
August 13th 2007

Dominion Finance Expects another Strong Year
Company to Secure Rating

Following on from a record year which saw Net Profit after tax increase by 91% Dominion Finance Holdings is on target to produce a strong first half year result.

Paul Cropp, Chief Executive Officer Dominion Finance Holdings, speaking at his first AGM since succeeding deputy chairman Terry Butler last year said the company’s continuing success in recording increased profits was due in part to the company sticking to what it knows combined with experience and strict governance procedures.

“Dominion is one of the few listed finance companies therefore, transparency, director and shareholder obligations are non negotiable.

“This is extremely important to our stakeholders especially given recent events in the industry which sparked the inevitable plethora of comments from rating companies, financial advisors, competitors, funds managers, regulators and bankers. One cannot but ask if they are deflecting attention from themselves or actually have something worthwhile to say.”

The much publicised failures of some finance companies is why Dominion Finance supports and encourages an expedient introduction of the proposed regulation changes in the market, particularly in regard to the financial advisor role.

“The expected regulatory interventions combined with continued investment in infrastructure will see the company secure a rating from a reputable rating agency in due course,” says Cropp.

Cropp also believes the current economic environment is giving mixed signals.

“On one hand we have worrying trade figures, housing affordability and exchange rates, but then on the other hand we are in close proximity to the vibrant Australian and Asia economies with our unemployment at record lows and our primary industries looking enviable. In addition we have a government that is trying to slow the economy but is also sitting on a nice surplus which will no doubt start to be used over the coming 12 months.

“Although this does create some nervousness we continue to see good levels of lending inquiry and a continuation of debenture reinvestment rates above expectations.”

Cropp also reiterated the company’s desire to acquire other businesses as long as they provide increased shareholder value.

Financial Highlights
31 March 2007 31 March 2006
Operating Revenue $m 70.20 30.67
Net Profit After Tax $m 17.11 8.96
Dividend (cents per share) 13.30 7.60
Total Assets $m 484.27 374.60
Euity $m 51.58 38.90

ENDS

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