Forum Archive Index - March 2001

["Peter Maiden" <pmaiden@xtra.co.nz>]

GDC result for full year to Dec 2000 interesting for one thinng - the lack of emphasis put on earnings per share in New Zealand.

 

GDC report a $3M profit. Mention in their announcement is this is down 6.2% down on previous year and ' profit before tax was steady'.

 

Not good - but on the face of it not going backwards.

 

However reported earnings per share went from 10.6cents to 8.5cents - an earnings drop of 20%.

 

These have been calculated on the average number of share over the year (some 7.5 million new shares were issued over the year when they listed and to fund staff retention). If the esrnings per share were calculated on the year end numbers the figure the result is 8.0 cents - a drop in earnings of 25%.

 

GDC Shareholders have in reality seen a significant drop in earnings. It has happened recently with other comapnies, not just GDC.

 

It is the earnings per share that forms the basis of the share price. Therefore more attention should be paid to this ratio when assessing performance.

 

Cheers

 

Peter

(Don't have any GDC)

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