Finance Direct concentrates on brokerage

NZF announced the sale of its 70% stake in Finance Direct to its managing director Wayne Croad at the end of March, who owned the other 30%, but didn't say at what price.

Croad, who says: "I felt elated. It's a really good feeling" to gain full ownership of the company, says the terms of the sale are confidential.

NZF bought 51% of Finance Direct in April 2007, paying $1.425 million. In December 2008, it increased its stake to 70% for an undisclosed sum. However, NZF's annual reports for the years ending March 2009 and 2010 valued the stake at $1.708 million.

Finance Direct has always had a big brokerage business which means it isn't completely dependent on its finance company and investor loyalty to keep taking up its debentures, Croad says