KEY POINTS:
Dominion Finance Holdings yesterday shrugged off "challenging times" for the sector to report a record net profit of $9.4 million for the six months to September 30, up 33 per cent on a year ago.
Chairman Rick Bettle said the result was very pleasing given the recent uncertainty for investors in the sector. The profit was generated by the two operating subsidiaries Dominion Finance Group and North South Finance Limited.
Dominion Finance Holdings, which said it had no related party lending, intends to secure a credit rating from Standard & Poor's by March 31.
Chief executive Paul Cropp said a rating was important for investors but not a saviour. Shrugging off an environment which has seen investors shy from finance companies after 10 collapses in the past 18 months, Dominion Finance Holdings said revenue rose 14 per cent on higher interest rates and fees.
Costs also rose 10 per cent.
The company is forecasting lower revenue in the second half as the ugly climate for finance companies bites.
However, Bettle said profitability was good, "so we are looking at a 10-15 per cent increase in the net profit after-tax result for the full financial year".
A fully imputed interim dividend of 5.0c per share, up from 4.8c last year, will be paid on November 16.
- NZPA
