Dorchester strengthens position

Thursday, 23 August 2007, 4:31 pm
Press Release: Alastair Thompson

Media release
23 August 2007

Dorchester strengthens position to take advantage of industry consolidation

Refocusing, simplifying and strengthening the company were the key messages announced to shareholders at Dorchester’s annual meeting today.

At the meeting, chairman of Dorchester, Mr Barry Graham, commented on the company’s performance and the finance sector generally:

“The company is performing well and is on track to deliver a Net Profit after Tax in excess of $6 million for the 2008 financial year.

“Fallout from the collapse of a few less robust finance firms, including Bridgecorp and more recently Nathans Finance, continues to impact the sector. In these times it is important to differentiate and to understand where your money is going and who is managing it.

“Dorchester is a sound financial solutions company, with strong cashflow and liquidity. We are well positioned to take advantage of opportunities that may arise through industry consolidation.”

Chief executive officer, Mr Andrew Walker, detailed a streamlined future direction for the company that was the result of a 12 month strategic review.

“A key part of the review was to identify the most appropriate strategy for the company. We concluded that in order to move forward, we needed to simplify and focus the company on those businesses with the greatest potential.

“Our future focus is on non-consumer related finance activities, the home equity release market and savings products. We are exiting the Auckland used car market, shutting down sub-scale operations, and selling the investment advisory business and non core property assets.

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“The funds released will be used to strengthen the company’s position to take advantage of opportunities arising from industry consolidation.”

Mr Walker also commented on Dorchester’s acquisition of a 25% shareholding in St Laurence Limited.

“We are very pleased with the investment and are starting to leverage each other’s expertise and explore joint opportunities. Kevin Podmore is a welcome addition to the board as is his industry experience. It is too early to outline the definitive next steps for the companies except to say that currently the St Laurence investment is very positive for Dorchester shareholders and the closer the working relationship becomes, the more value will be realised.

‘We have strong and supportive stakeholders, are well funded and have good liquidity – all of which are important factors in this environment.”

Voting on resolutions at the meeting was determined by polls. Results from the polls are to be released to the market by 9am on Friday 24 August 2007.

ENDS

Summary of key announcements at Dorchester annual meeting, held 23 August 2007:

* Refocusing, simplifying and strengthening the company were the key messages announced to shareholders at Dorchester’s annual meeting.
* The company is on track to deliver a Net Profit after Tax in excess of $6 million for the 2008 financial year.
* Following a twelve month strategic review, it was decided to simplify and focus the company on those businesses with the greatest potential.
* Dorchester’s future focus is on non-consumer related finance activities, the home equity release market and savings products. The company is exiting the Auckland used car market, shutting down sub-scale operations, and selling the investment advisory business and non core property assets.
* The funds released will be used to strengthen the company’s position and will allow us to take advantage of opportunities arising from industry consolidation.
* The St Laurence investment is very positive for Dorchester shareholders and the closer the working relationship becomes, the more value will be realised.
* Dorchester is a sound financial solutions company, with strong cashflow and liquidity. The company is well placed to take advantage of opportunities that may arise through industry consolidation.

Alastair Thompson

Scoop Publisher

Alastair Thompson is the co-founder of Scoop. He is of Scottish and Irish extraction and from Wellington, New Zealand. Alastair has 24 years experience in the media, at the Dominion, National Business Review, North & South magazine, Straight Furrow newspaper and online since 1997. He is the winner of several journalism awards for business and investigative work.