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

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news