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


Dorchester Half Year Trading Tracks Ahead

Dorchester Half Year Trading Continues to Track Ahead of Forecasts

Dorchester Pacific Limited (DPC) today posted its unaudited interim results for the 6 month period to 30 September 2010 reporting a Net Profit after Tax of $15.7million (2009 $8.5 million loss).

The major item contributing to the profit was the Fair Value Adjustment arising from the Capital Reconstruction Plan approved by investors in June 2010. The restructuring involved a complex set of transactions to effect forgiveness of Debenture liabilities, issue of 4 securities (Property Trust Units, 2013 Notes, Shares and Options), a buy-back of the Subordinated Notes and a $10.3 million capital raising.

Executive Director & CEO Paul Byrnes commented;
“The transactions that were part of our capital restructuring plan have now all been successfully completed with all costs written off. As at 30 September 2010, we have a clean balance sheet with positive Shareholder Funds of more than $25 million, which is slightly ahead of forecast.

In the last three months our focus has turned to business growth and the operating performance of our Dorchester Finance and Dorchester Life businesses and this is helping to drive our improved performance”.

Dorchester’s 5 Year Prospective Financial Statements prepared as part of the Capital Reconstruction Plan showed an operating loss before Fair Value Adjustment of some $3 million after tax in the first year to March 2011 followed by a slightly better than break-even result for year 2 and a profit above $4 million in Year 3.

Byrnes added: “At the AGM in early September we were able to advise that we were trading ahead of budget by $500,000 after the first quarter. It is pleasing to note that this reported half year operating result of $921,000 loss is ahead of budget by more than $1 million.

Dorchester Finance and Dorchester Life contributed equally to the better than expected interim group result. Dorchester Finance cash collections and bad debts recovered on

the legacy Senate motor vehicle book have consistently been ahead of forecast and new lending demand has been stronger than expected from the business sector.

We now expect close to 50% of the new lending receivables book to be commercial loans with the balance being our more traditional motor vehicle lending.

Dorchester Life has begun to expand its sales agent force, including establishing a new team in Christchurch. The business also launched a new Group Life Insurance product in October, with further products expected to launch as the Company looks for additional growth opportunities in the sector. Within its existing portfolio of products, SuperLife Savings and Insurance sales activity is expected to further pick up in the run up to Christmas”.

Byrnes concluded: “Looking ahead, while we wouldn’t at this stage promise to beat the forecast 2nd half operating result by the same margin, we do anticipate at least holding on to the first half gains. We will continue to look for prudent growth and M & A opportunities for the business in order to drive value for our shareholders. With positive developments such as the new senior appointments we have made and our increased focus on marketing the business, we are confident that we can continue the business rebuilding and growth momentum”.


© Scoop Media

Business Headlines | Sci-Tech Headlines


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>


Electricity: New Zealand Remains In Top 10 For Energy Balance

The World Energy Council’s Energy Trilemma Index has become part of the energy dialogue both globally and in New Zealand. The Index illustrates the need for countries to balance energy security, energy equity and environmental sustainability. New Zealand ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>


Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>