Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Dorchester returns to 1H profit, delays resuming dividends

Dorchester returns to 1H profit, delays resuming dividend payments on acquisition opportunities

Nov. 11 (BusinessDesk) - Dorchester Pacific, which avoided failure in 2010 by convincing investors to accept a debt-for-equity swap, returned to first-half profit as revenue almost tripled, though the firm has put off a return to making dividend payments amid potential acquisition opportunities.

The Auckland-based firm made a net profit of $1.79 million, or 0.6 cents per share, in the six months ended Sept. 30, turning from a loss of $87,000 a year earlier, it said in a statement. That included a $1.67 million interest payment to allow for the conversion of convertible notes, and came as revenue soared 190 percent to $15.7 million.

“The higher trading profit has been achieved in market conditions that have remained more subdued than most expected,” chief executive Paul Byrnes said. “With fixed operating costs now covered, these business units will benefit from the continuing organic growth and from M&A activity.”

The board decided to delay resuming dividends with an interim payment, due to “a number of merger and acquisition opportunities under consideration,” the company said. The firm had previously indicated it would start paying dividends, having suspended them five years ago when it convinced debenture holders to accept a moratorium on interest payments.

The shares were unchanged at 23 cents today, and have shed 30 percent this year, though that period includes the conversion of options and convertible notes which has more than doubled the shares on issue.

The company’s finance unit lifted earnings 14 percent to $1.4 million on a 33 percent increase in revenue to $3.2 million, and its insurance arm reported a 26 percent slide in segment profit to $581,000 on an 8 percent fall in revenue to $2.3 million.

Its debt collection unit made a segment profit of $2.4 million on sales of $9.1 million.

Dorchester affirmed annual guidance of a $6 million trading profit in the 12 months ending March 31, 2014.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news