1 May 2013

New profit forecast for finance company

8:50 pm on 1 May 2013

Dorchester Pacific has upgraded its profit forecasts and announced a streamlining of its capital structure.

The finance company now expects to report a profit of $1.6 million for the year ended March, up from the previous forecast of between $1.2 - $1.3 million.

It also expects profit for the year ending March 2014 will be $6 million, which will rise to about $10 million in each of the subsequent two years.

Chief executive Paul Byrnes said trading conditions in the past year were as expected, but a number of one-off factors will boost profit.

The company may have been conservative in its 2014 forecast.

Dorchester expects to raise its shareholder funds from $29 million to about $61 million through the exercise of options and by converting notes to equity nearly two years early.

Mr Byrnes said the company is taking various measures to persuade option holders to take action, including writing to them individually and providing an 0800 help line.