Growth streak continues for Dorchester

By Phil Boeyen, ShareChat Business News Editor

Tuesday 5th June 2001

Financial services group Dorchester Pacific (NZSE: DPC) has increased net profit for the fifth year in a row.

For the year ended March the company has made a profit after tax of $3 million, up 20% from last year's $2.5 million. Sales were up 28% at $32.2 million and earnings per share increased 9% to 16.48 cents per share.

MD, Brent King, says the finance and investment advisory and sharebroking divisions contributed positively to the result, although at a lower level than for the previous period.

He says the insurance division showed an improved return and the group tax charge was reduced by benefits available to the group and to the insurance industry.

The company's accounts showed a tax benefit of $27,000 for the year compared with last year's tax bill of $1.18 million.

Despite the improved result Mr King says more improvements can be made.

"We need to make further progress in maximising the benefits of the infrastructure we have developed. The management is committed to improving profitability and shareholder value."

Mr King says the financial services industry still has significant challenges relating to the performance of the New Zealand economy.

A dividend of 3 cents per share has been declared.

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