KEY POINTS:
Dominion Finance chief executive Paul Cropp told shareholders yesterday that his company would welcome the new regulatory regime for the finance sector and would move soon to seek a rating from a reputable agency.
Speaking at the company's annual general meeting in Auckland, Cropp said Dominion Finance was in good health.
But the move to a more regulated environment was a good one in the wake of a series of highly publicised failures in the sector. The most recent company to collapse, Bridgecorp, went into receivership last month putting $458 million of investors' money at risk.
Dominion Finance - which is listed on the NZX - continues to trade well, Cropp said.
"Despite some nervousness in investors, we continue to see good levels of lending inquiry and a continuation of debenture reinvestment rates above expectations."
The company reported a profit of $17.11 million in the year to March 31 and expected to produce a strong result for the first six months of the current year.
Last year Dominion Finance bought North South Finance, which Cropp said had contributed to net profits and was growing steadily.
"Our desire to acquire is unchanged," he said.
While there were some worrying economic indicators - such as trade figures, housing affordability and exchanges rates - there were still plenty of positives, Cropp said.
"We are in close proximity to the vibrant Australian and Asia economies, unemployment is at record lows, our primary industries are looking enviable and we have a government who on one hand is trying to slow the economy but on the other is sitting on a nice surplus which will no doubt start to be used over the coming 12 months."
Dominion Finance now has more than 16,000 individual investments and, as at March 31, had $355 million in debentures. Its loan receivables to March 31 were $428 million.
The company's shares closed unchanged at $1.90 yesterday.
