Forum Archive Index - September 2001

["Mike Hudson" <mikehudson@clear.net.nz>]

Hoop.

Good on yer mate, we need a bit of stirring up - it is getting a bit boring and over analytical.

 

I have a similar view to you on DPC but the recent full years result did not make good reading which IMO has kept the share price flat. On the face of it the results looked good with an increase in Profit After Tax of 19.8% but there was a large tax credit (due to a change in tax treatment of the insurance subsidiaries) and the actual Profit Before Tax fell by 19.2%

 

Also Bad Debts written off for the year of $2.4m on finance receivables of $120m seems rather high to me given that they presumably lend on a fully secured basis.

 

The test will be how well they can integrate the businesses they have bought and how quickly they can achieve the scale they need to dilute the effect of their rather high overheads.

 

Having said that they seem to be on the right track and I'll hang on to my shares for a while.

 

Cheers

Mike H