Dominion Finance on the lookout for good buys

Shrugging off signs of a slowing economy, Dominion Finance Group yesterday reported a 17 per cent increase in net profit and says it will continue to look for acquisition opportunities.

Chief executive Terry Butler said net profit rose to $8.96 million from $7.6 million last year, "during a period when some commentators had been predicting a potential recession in the New Zealand economy".

"It is accepted that the economy is slowing, but 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 Dominion Finance Group and North South Finance will concentrate on."

Dominion completed its purchase of North South Finance in March for almost $40 million in cash and new shares.

Butler said the company would continue to look for acquisitions of similar quality, but only where there was obvious synergy with its existing businesses.

Dominion Finance shares closed steady at $1.45.

Fifty-year-old Dominion Finance specialises in business loans, management buy-out finance, commercial and residential property funding, agriculture, tourism, healthcare and business loans.

Dominion Finance's net finance receivables, essentially the amount lent to it by debenture holders, increased by $63.5 million or 42.3 per cent to $213.5 million. Including North South, Dominion Finance Group's net finance receivables stood at $302.8 million.