NZF Group lifts Finance Direct stake to 70%

Friday 5th December 2008

NZF Group, the finance company that was involved in the buyout of Mike Pero Mortgages in 2006, has increased control of its Finance Direct unit to 70% from 51%.

Wayne Croad, executive director at Finance Direct, increases his stake in the business to 30%, according to a statement.

Finance Direct is approved under the Crown Deposit Guarantee Scheme and NZF managing director John Callaghan said he's confident it can "continue to offer both competitive investment rates and remain a provider of choice in the consumer lending market."

It currently has a term deposit offer of 9.3% annual for a minimum 28 months. NZF managed to keep itself in profit in its first half ended Sept. 30, with $1.3 million, meeting the forecast it made in August.

As at Sept. 30, NZF had cash reserves of $6.7 million and total undrawn bank facilities of about $73 million.

Shares of NZF trade infrequently on the NZX, with 5,000 shares changing hands on Nov. 20 at 35 cents. The shares are down 46% this year.

By Jonathan Underhill

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