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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news