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

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news