Dorchester on the up

Friday 8th November 2002

With a market capitalisation of about $30 million Dorchester Pacific is still a market minor but its controlled growth formula has been delivering for shareholders.

Over the past four years net earnings have grown at an average annual 39% to $3.7 million this March year. Dividends over the same period have risen from 2.05c to 6.6c.

The company is pursuing a strategy of diversification, organic growth and growth by acquisition but it has been careful to ensure each step is profitable and doesn't stretch the balance sheet. Operating cashflows have been strongly positive.

It now operates in three divisions: consulting, including sharebroking (Direct Broking), financial planning and immigration consulting; finance, mainly to the commercial sector; and insurance (Save and Invest Group). This gives the company diversified income streams from fees, interest margins and premiums.

Dorchester reports its September first-half result next week and is confident the upward momentum will be sustained.

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