Baycorp relaxed on rival

By Nick Stride

Friday 10th May 2002

Baycorp Advantage's share price fell further this week, despite the company's assurances a new competitor wouldn't hurt its business.

Managing director Keith McLaughlin told Australian media Dun & Bradstreet Australasia's plans to roll out a transtasman consumer credit reference bureau in July would not seriously affect Baycorp's margins.

He stuck to forecasts of 20% growth in earnings before interest, tax, depreciation and amortisation over the next three to five years.

DBA will draw on the strength of the worldwide Dun & Bradstreet business but the giant has ownership of only 2.5% in the local unit.

The majority shareholder is AMP, which owns 77.5%. Management owns 20%.

The new operation, which will be headed by former Experian executive John Erskine, has surprised some with the speed of its development but Mr McLaughlin said Baycorp was unworried.

"I don't think there was anything we didn't expect and nothing that gives us cause for concern," he told the Sydney Morning Herald.

Baycorp shares fell 18c to $4.53 after Tuesday's announcement but had steadied at $4.55 yesterday lunchtime. They have lost more than 40% of their value since last December's merger between Baycorp Holdings and Data Advantage. Early this year they were trading at $7.70.

DBA chief executive Christine Christian told Reuters the new operation intended to list on the Australian Stock Exchange in 2004. She said DBA had already signed key agreements with major credit providers and would maintain a comprehensive consumer credit database covering all market sectors.

Consumer spending financed by debt was expected to grow to $A150 billion from the current $A72 billion by 2005, she said.

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