18 Nov 2010

Dorchester Pacific loss smaller than expected

7:39 am on 18 November 2010

Dorchester Pacific has made a smaller than expected loss and says it's well-positioned for growth.

In June, Dorchester's investors approved a restructuring plan, making it the first finance company to emerge from moratorium.

It made a profit of $15.7 million in the six months to September, most of which is due to a one-off charge that arose from the capital reconstruction plan approved by investors in June.

That compares with a loss of $8.5 million in the same period a year earlier.

Excluding one-off-items, Dorchester reported an operating loss of $921,000.

Chief executive Paul Byrnes says that's still $1 million better than expected and is due to improved contributions from its finance and insurance businesses.

Mr Byrnes says he can't promise to beat the forecast second half operating result by the same margin, but anticipates at least holding on to the first half gains.

He says the company has a clean balance sheet and had $25 million of shareholders funds at the end of September.