In mid-June, the company said it was considering a moratorium on payments to debenture holders after becoming concerned about the liquidity of subsidiaries Dominion Finance Group (DFG) and North South Finance.
At the time of that announcement, the company's shares were in a trading halt, and when that halt was lifted, the price slid 76% to a record low.
The company wanted the shares suspended when it originally announced the moratorium but the NZX did not allow the suspension.
By not providing the annual report, Dominion yesterday got what it wanted two weeks ago.
NZX said last week that Dominion had not provided its annual report for the year to the end of March, which had been due on June 30, and gave the company until Monday to issue the report.
Yesterday, the exchange operator said Dominion had still not provided the annual report and trading in its shares would be suspended immediately.
DFH shares closed at 13.5c on Monday, having fallen from a record high of $2.86 in May 2007.
The Companies Office has laid criminal charges in the Auckland District Court against Marcus MacDonald, Anthony Bowden and Nicholas Kirk, the directors of Five Star Finance and Five Star Debenture Nominee.
Both companies went into liquidation on September 5 last year.
Companies registrar Neville Harris said the charges related to securities being offered and allotted to members of the public without there being a registered prospectus, investment statement or trustee appointed.
Cynotech had been "able to avoid the devastation surrounding us in the finance industry", chairman Allan Hawkins said.
The finance group yesterday reported net profit for the six months to the end of June up 18% from a year earlier to $1.23 million.
Mr Hawkins said growth in new lending had been conservatively constrained to reflect the company's concerns for overall conditions in the finance market, particularly in the property development sector.
"We simply cannot see the point in lending into a business sector where valuations are so unstable and where there is a distinct absence of end purchasers," he said.
Receivables growth would be constrained for the foreseeable future as Cynotech curtailed lending until the finance industry sorted itself out.
"We do not expect a return to any sort of normality with the finance company markets until after the end of calendar 2009 and we believe the flow-on effects of the devastation in the fringe property development sector will continue long after that," Mr Hawkins said.
In the meantime, the company was concentrating on collecting the National Finance and Western Bay loan books which it had bought.
The continuing collection of those distressed loan ledgers would provide cash flow and profit opportunities for the foreseeable future.
In the current climate, Cynotech was fortunate not to have a debenture prospectus and borrowings from the public, he said.
Its percentage of shareholder equity at 41.3% of total assets was one of the most conservative of any finance group.
Other funding came from friends of the company and large shareholders, Mr Hawkins said.
"We have a base number of very loyal shareholders and we have greatly appreciated their support and contribution to our stability in this economically unstable and trying period."
