Baycorp boosts interim result

By Phil Boeyen, ShareChat Business News Editor

Wednesday 21st February 2001

Baycorp Holdings (NZSE: BCH) says it is on track to deliver its seventh consecutive year of at least 20% growth following an interim profit announcement of just over $8 million.

The figure is 21% higher than the previous year's $6.63 million but included a loss from its Australian and Asian businesses of $945,000.

Chairman Roseanne Meo says the small loss from its joint venture in Australia, Alliance Holdings, reflected establishment costs and the initial business it has contracted.

"We expect Alliance will make a positive contribution to Baycorp's profit in the second half of this year," says Mrs Meo.

"There are significant opportunities that remain open to Baycorp within the Australian marketplace, and following our strategic stake in Data Advantage Ltd, the two companies have been exploring opportunities to work more closely together."

Baycorp owns around 10% of Data Advantage, which it bought last year at an average price of A$4.64 against yesterday's closing price of A$5.65. Mrs Meo says the company's investment has not been revalued in the half-year accounts, but at the end of the period it had made an unrealised gain of about $9 million.

Mrs Meo describes the interim result as an exceptional achievement, given the company's attention to its future growth platforms in Asia and Australia.

"Baycorp's core business growth remains extremely robust and the company's initiatives in the Asia/Pacific region are progressing from strength to strength."

She says while expenses have grown, these have largely been related to the development of Baycorp's international expansion rather than the core New Zealand business.

Baycorp's revenue grew across all its division's, including a 15% jump in business data services, which Mrs Meo says had strong growth in both credit inquiries and "non-core" services.

"With Baycorp's already comprehensive range of national property information, motor vehicle data and credit information, and plans to further enhance its content and delivery mechanisms, we are confident this growth will continue."

The company is paying out 94% of tax-paid profit in the form of a 9 cents per share fully imputed dividend. This is the same as the previous year's dividend payout, and has been slightly diluted due to an increase in the number of shares on issue from 76 million to 84 million.

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