Record interim profit for Baycorp

By Phil Boeyen, ShareChat Business News Editor

Monday 12th February 2001

Credit and financial services company Baycorp (NZSE: BCH) says it will announce a record profit when it releases its interim report next week.

The company says results for the six months to the end of December will show enhanced earnings and revenue growth for the group, and are in line with analysts' expectations.

Baycorp has released the direction of its interim report ahead of time in response to a media report in the Sunday Star Times which claimed the company had received two earnings downgrades by brokers in the run-up to this month's half-yearly reporting season.

The paper cited increasing competition from another credit and receivables company, RMG (NZSE: RMG), which has been making inroads into the New Zealand debt collection market.

However Baycorp MD, Keith McLaughlin says his company remains on track to achieve its projected earnings for the current year and beyond.

"Baycorp will announce a record interim profit when it reports the financial results for the six months to December 2000 on the 21stFebruary.

"Baycorp has already recorded six consecutive years of 20 percent plus growth in after-tax earnings from its core business. This has continued during the first half of 2000/01 with growth occurring across all the major business sectors that the company interfaces with."

Last year the company announced an interim profit of $6.6 million, up 17% on the previous year. Its full year profit for the year to June 2000 was $15.7 million, also up 17% on the year before.

Mr McLaughlin says a number of analysts have revised up their earnings forecasts for Baycorp in the last few months and the company is very confident of meeting the market consensus forecasts for the foreseeable future.

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