By Phil Boeyen, ShareChat Business News Editor
Thursday 24th August 2000
|Text too small?|
The NZSE favourite has announced a full year profit up 24.4% to $16.74 million, after tax but excluding minority interests. After adjusting for a million-dollar loss from minority interests and subsidiary and associated companies, the group net profit was $15.733 million.
Revenue for the year increased by 13% to $58.536 million from $51.836 million.
In announcing its results BCH has is being especially bullish on Australian market potential, where it is in a joint venture with Alliance Group.
BCH chairman, Rosanne Meo, says the venture has been established as a major force in the Australian debt management industry, after becoming the leading provider of services to the telecommunications industry, and entering into a strategic partnership with the Commonwealth Bank.
"Alliance has built a cornerstone position in the market, and is well on the way to becoming the leading debt management company in Australia. As a result, we expect the first year losses associated with establishing the joint venture to be reversed within the current financial year."
The statement throws down yet another gauntlet to Baycorp's major competition in Australian, RMG. RMG is currently leading the market with a 25% share following its purchase of business-to-business debt collecotr, Credit Solutions Australia. RMG has projected June 2001 revenues of just under $89 million.
Mrs Meo says Asia also offers future growth opportunities.
"Baycorp is emerging as a significant technology provider in the credit services markets of the Asia/Pacific region, particularly in Singapore and Malaysia. In the coming years, Baycorp's earnings will be boosted by both its technology licensing revenues and joint venture APAC BizInfo's direct equity investments in local operators across Asia."
The company is also claiming the leading position in what it calls "the newly emerging service area of secure Internet communication and digital certification".
Mrs Meo says security is seen as a major constraint to the growth in e-commerce and digital certificates, the on-line equivalent of passports, are central to the solution.
"Baycorp ID Services is well positioned to grow rapidly as market demand for digital certification accelerates. While the Board does not anticipate Baycorp ID Services will have a significant impact upon the company's performance this year, it is expected to contribute positively to the group's earnings in the near-term."
BCH announced a final dividend of 17 cents per share. The shares were trading down 70 cents at $12.20 on Thursday on light turnover.
No comments yet