Monday, 26 March 2007
Southern Finance broadens market footprint
Christchurch-based Southern Finance Ltd (SFL) has increased its presence in the
South Island vehicle finance market by taking a 50% stake in another finance business in the same city, South Island
Vehicle Finance Ltd.
Layton Martin founded South Island Vehicle Finance (SIVF) in 1994. He will continue to be managing director of the
company and will be joined on the board by SFL managing director Tony Wilkins.
Through SIVF’s position in the personal loan and dealer finance markets SFL has widened its footprint in the vehicle
finance market where it still sees opportunity, said Mr Wilkins.
“South Island Vehicle Finance is in a different sector of the market to SFL and we have virtually no crossover in terms
of lending clients between the two businesses. This gives SFL greater depth in the vehicle finance market and a stronger
focus on Canterbury and the South Island.”
Meanwhile, SFL has also bought out the remaining 30% of Pacific Invoice Finance Ltd it did not own from that business’s
founder Jim Hughes. SFL bought into the business in 2004 as it recognised invoice financing as an increasingly important
funding tool for emerging business. Now that it has 100%, SFL director Michael Bushell has been appointed managing
director.
Mr Bushell said invoice financing was “the real growth area of the finance sector.” He pointed to the sector’s 30%
compound annual growth in Australia and saw no reason the same growth could not be achieved here.
Pacific Invoice Finance has offices in Auckland, Tauranga and Christchurch.
The quietly growing SFL now controls group receivables of $30m and a staff of 23 across the group. While it still sees
continuing “selected opportunities” in the motor vehicle finance sector, it is also broadening its sphere of activity,
said Mr Wilkins.
“It would be fair to say that Southern Finance is at the same time focusing on lending direct to the public, and
engaging in some commercial and residential property lending in the South Island.
“The property skills of director Bert Govan and the governance of our independent director Brian Johnstone balance well
with our loyal and talented staff.”
SFL’s directors are also involved in the structuring of debt, arising from large transactions, to trading banks and
other financial institutions, as well as outsourcing finance for commercial and residential property developments, he
said.
ENDS