Dorchester Pacific puts on the ritz

By Deborah Hil Cone

Friday 28th May 2004

Finance company Dorchester Pacific's shares were up 16c in a day at presstime after it reported an increased profit for the sixth year in a row.

The booming finance company market helped it to a $6 million after-tax profit in the year to March, up from $4 million the previous year.

But managing director Brent King sounded a note of caution saying "the looming economic concerns of oil price rises, increasing interest rates and growing household debt give cause for concern."

King said the result showed Dorchester's finance division continued to grow and remained the mainstay of the group, although the investment adviser and life insurance businesses also performed well.

The finance business generated revenue of $44 million, producing a before-tax surplus of $4.6 million on assets of $294 million.

Dorchester's shares shot up to $3 yesterday above its previous 52 week high of $2.95.

Meanwhile, 42 Below shareholders Grant Baker and Shane McKillen have taken stakes in the company with about one million new shares issued to them, according to a filing with the Stock Exchange.

Dorchester promoted the 42 Below float last year.

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