Dorchester - Reverse Mortgages
Quote:
Originally Posted by
COLIN
you mention reverse mortgage business - are DPC intio that in a significant way?
You can find some information on Dorchester's Reverse Mortgage offering here:
Dorchester - Reverse Mortgages and Home Equity Release
DPC writedown of property and St Laurence
1 May 2008
Company Announcement
DORCHESTER PACIFIC ANTICIPATES INCREASED PROVISIONING
The board of Dorchester Pacific today advised that the previous profit
guidance of $3 to $4 million for the financial year ended 31 March 2008 will
not be achieved as a result of trading conditions in a difficult finance
market and a lower than anticipated contribution from St Laurence Limited.
The directors also advised that given a recent deterioration in the property
market which they believe is significant and unlikely to improve in the short
term, they have determined to take additional provisions on property loans.
This provisioning takes into account the longer time it is now expected to
take to realise some property positions. A review is also underway of the
carrying value of investments, including the 25% holding in St Laurence
Limited which may further impact the FY08 profit.
Chairman of Dorchester Pacific, Mr Barry Graham, said: "There has been a
deterioration in property asset values against which lending is secured and
we anticipate this could result in an increase in provisioning of around $5
million after tax. The review of the value of St Laurence may result in a
non-operating impact to shareholder's equity.
"Cash holdings continue to remain consistently above $30 million and we
maintain positive matching between our debenture obligations and incoming
cash from the repayment of loan receivables. We are therefore currently
comfortable in our ability to repay debenture obligations as they fall due.
We have maintained a diversified loan book, with our top five loans
accounting for only around 25% of our total receivables with none of these
being inter-related parties."
The company also today announced that CEO Andrew Walker has resigned to take
up a role at Auguste Holdings Limited. Auguste Holdings holds a substantial
majority of the shares in Auguste Finance Limited, which is the majority
shareholder in St Laurence Limited and a substantial shareholder in
Dorchester Pacific. Dorchester Pacific holds a 25% stake in St Laurence.
Mr Andrew Walker said: "Having set the path forward for Dorchester in a
difficult finance market I feel that the time is right for me to move on and
to take on a new challenge. I am proud to be leaving the company in a strong
and liquid position."
Mr Graham said: "Andrew's services will be available to Dorchester through
his new role at Auguste Holdings which will ensure continuity while new
management arrangements are put in place.
"Going forward we will continue to simplify the business and reduce costs.
We will de-emphasise capital intensive activities and focus on new business
opportunities which leverage the company's existing expertise and
infrastructure.
"On behalf of Dorchester, I would like to thank Andrew for his leadership
over a period of major market upheaval and uncertainty. He has contributed
significantly to re-engineering Dorchester Pacific for a changed market
environment."
ENDS
What have we been saying the current management have destroyed any value in Dorchester.
They are having to write down St Laurence, now that's a surprise, NOT.
Did the CEO describe it as the "best deal he had ever done", hate to see his other deals.