Dorchester Pacific, which avoided failure in 2010 by convincing investors to accept a debt-for-equity swap, narrowed its first-half loss and reiterated its target for a full-year profit, helped by earnings from recently acquired debt collector EC Credit Control.
The shares climbed 8% to 27 cents on the NZX, bringing their gain this year to about 207%. The net loss was $87,000 in the six months ended September 30, from a loss of $993,000 a year earlier, the Auckland-based company says in a statement. Operating revenue rose 26% to $5.4 million.
Dorchester has added EC Credit to its existing insurance and finance businesses, which both lifted income in the first half.
The company first flagged a full-year profit of at least $1 million when it announced the acquisition in September. Profit for the 2014 year would be $4 million to $5 million, it said today.
The company's turnaround includes the early buyback of $15 million of June 2013 notes after it secured an equivalent amount of bank funding.
It anticipates a jump in shareholders' funds in 2013 when 150 million options are exercisable next June at 12.5 cents apiece.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- NBR Radio Rich List Special: Interviews with Rich Listers, philanthropists, property gurus, investors and much, much more
- “An RBA interest rate cut is pretty much a done deal,” says Capital Economic's Paul Dales
- Japan’s Prime Minister Shinzō Abe opens the floodgates to more stimulus. Join NBR's Jason Walls as he explains why
- Despite a few howls of protest, land economics expert Adam Thompson rates the Auckland Unitary Plan
- Hamish McNicol discusses the Serious Fraud Office’s warning to companies about employee fraud