Dominion Finance shares hit record after dividend

Shares in Dominion Finance Holdings jumped over 5 per cent to a record high today as the finance company shrugged off woes in the industry to report pre-tax profits at over a third of turnover.

It more than doubled its interim dividend after it doubled its September half year net profit to $7.48 million.

The company's pre-tax profit rose 84 per cent to $11.5m compared with total revenue of $33.7m.

Shares in the company rose 8c to a record $1.60. The stock is up from $1.24 this time last year.

The Dominion Finance Group unit's net profit after tax rose 35 per cent to $5.6m, on revenue up 54 per cent to $14.2m.

Net profit at North South Finance (NSF), bought on March 31, reported a net profit of $3.2m on revenue of $11.6m.

A fully imputed interim dividend of 4.83 cents per share will be paid on November 17. The dividend is up from 2.1865 cents per share paid last year.

Former ceo and now deputy chairman Terry Butler said the integration of NSF had gone very smoothly and substantially increased profitability.

He said there had been a "flight to security" in the wake of the collapse of three finance firms this year.

Mr Butler said Dominion Finance was looking for acquisitions and further growth opportunities.

Chairman Rick Bettle said: "When you have been around for decades like us, and have been through the ups and downs of the financial cycles, you put controls in place to ensure continuity."

Dominion Finance bought North South Finance for $30m plus shares issued at $1.40 each - above the then prevailing share price.

The company is 13 per cent owned by Mr Butler while South Canterbury Finance, controlled by Timaru millionaire philanthropist Allan Hubbard, owns 5.6 per cent.

- NZPA