Dorchester narrows first-half loss, forecasts FY profit helped by EC Credit
Nov. 22 (BusinessDesk) – Dorchester Pacific, which avoided failure in 2010 by convincing investors to accept a debt-for-equity swap, narrowed its first-half loss and reiterated its target for a full-year profit, helped by earnings from recently acquired debt collector EC Credit Control.
The shares climbed 8 percent to 27 cents on the NZX, bringing their gain this year to about 207 percent. The net loss was $87,000 in the six months ended Sept. 30, from a loss of $993,000 a year earlier, the Auckland-based company said in a statement. Operating revenue rose 26 percent to $5.4 million.
Dorchester has added EC Credit to its existing insurance and finance businesses, which both lifted income in the first half.
The company first flagged a full-year profit of at least $1 million when it announced the acquisition in September. Profit for the 2014 year would be $4 million to $5 million, it said today.
The company’s turnaround includes the early buyback of $15 million of June 2013 notes after it secured an equivalent amount of bank funding. It anticipates a jump in shareholders’ funds in 2013 when 150 million options are exercisable next June at 12.5 cents apiece.