Bay corp predicts 50 per cent lift

Press, 9 October 1987, Page 14

Bay corp predicts 50 per cent lift

PA Wellington Financial services group Baycorp Holdings is predicting an increase in tax-paid profit of at least 50 per cent in its second year as a public company. Its maiden tax-paid profit for the year ended June 30, 1987 was 55.586 M, substantially ahead of the prospectus forecast of $1514M. “Emphasis will be placed on achieving quality cash earnings,” the chairman, Mr Neil McLaughlin says in Baycorp’s annual report. In its first year as a public company Baycorp quickly realised emphasis should be placed on expanding into areas where there was a direct link with its known expertise, he said. The company’s core activities now are orovidinE bust-

ness Information services, credit reporting, and debt collecting. The key to the company’s success in these related fields has been the development of innovative computer systems. Expansion in the coming year will be achieved by increasing the number of collection and reporting offices, by better marketing of computerised credit reporting, and by the introduction of the dial-up computerised information system. In addition. Baycorp has researched debt collecting in other countries and is likely to set up debt collecting operations overseas in the next year. Debt collecting was the main activity when the company was floated in June 1986 and in the oast year the

number of offices has grown from nine to thirteen, with more offices planned. But debt factoring is likely to prove as important as the collection of overdue accounts. Baycorp purchased the loans ledger of the Ministry of Energy’s Alternative Fuels Scheme tn August 1986. It has recently won a tender for the collection of royalty payments on geothermal bores, and is tendering for the collection of the Public Broadcasting fee. With the purchase of Nationwide Credit Services, Mercantile Gazette Marketing, and Datacorp Systems in March this year. Baycorp became a force in the credit reporting field, Mr McLaughlin said. Emphasis is now being

placed on the computerisation of all credit reporting. Baycorp’s latest venture — the provision of credit, business, and investment information via computer — has the most potential, he said. The customer will access information through telephone line from a supplied computer terminal Prototype of the system will be available this month. Investments in areas not compatible with the company’s main activitie have been disposed of during the year. The 25 per cent stake in Securitie Corp, Ltd, and the 50 per cent stake in Rotorua sharebroker, Franklin Home and CO, has been sold. After 29 years as a family company. Baycorp floated

last year with the issue of 10M shares with 5M separately transferable attached options. Apart from 75482 shares issued under the dividend reinvestment scheme, no further capital was issued during the year, bringing the issued capital at balance date to 10,075482 ordinary shares and 5M options. But on November 2 this year a 4 for 1 share split will see the nominal value of the shares reduced to 25c. "This will have the effect of bringing the price per share into the range of the smaller investor and at the same time make more shares avaitabie,” Mr MdaugNin said. The share split wifi be followed by a I for 5 bonus issue. - ■