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

 


Dorchester pays first div in 7 yrs after meeting guidance

Dorchester pays first dividend in 7 years after meeting guidance with jump in profit

By Suze Metherell

May. 22 (BusinessDesk) - Dorchester Pacific, the finance company whose shares have more than doubled since a capital restructure in 2010, posted full-year earnings growth that met last month's guidance and declared its first dividend in seven years.

Net profit jumped to $8.21 million for the year ended March 31, from $1.72 million a year earlier, and included a $1.67 million,interest prepayment relating to its convertible notes and a $3.23 million gain to bring tax losses onto the balance sheet, the Auckland-based company said in a statement. Sales increased 63 percent to $31.3 million.

Dorchester has turned itself around since convincing investors in 2010 to agree to a complex debt-for-equity swap, allowing the company to avoid the financial sector collapse that wiped out many of its rivals in the wake of the global financial crisis. Since then it has attracted shareholders such as the Business Bakery, whose principals were behind success stories such as 42 Below vodka, and added business including car loans and debt collection. The shares jumped 6.7 percent to 24 cents on the NZX today, up from about 12 cents at the end of 2010. The stock was as high as 36 cents in early 2013.

"The results reflect a completely transformed business with a strong, conservatively geared balance sheet and sustainable and growing trading profits," said chief executive Paul Byrnes, who directly owns 6.7 percent of the company, making him the third-largest investor after Hugh Green Investments and the Business Bakery.

Shareholders will receive a final dividend of 0.5 cents a share, amounting to,$2.5 million, or about 40 percent of Dorchester's underlying profit of $6.7 million.

Revenue from debt collection services, the biggest source of sales, jumped 120 percent to $17 million, reflecting the contribution from EC Credit, which was acquired in 2012. Revenue from its finance arm rose 31 percent to $6.87 million and insurance sales barely budged at $4.98 million.

The finance company owns the DPL Insurance and EC Credit brands and is chasing growth through acquisitions, buying Oxford Finance in March and boosting its stake in Turners Auctions last year. Dorchester reiterated its target of achieving annual pretax earnings of $15 million over the next two years.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news