Baycorp A$19 million net loss betters previous year

Australasian debt collector Baycorp Advantage posted a net annual loss of A$19.4 million ($22.0 million), compared with the previous year's A$300 million loss.

Baycorp's profit before significant items and amortisation was A$18.7 million, on the back of an improved performance in the second half of the year ended June.

The group's credit bureau accounted for 52 per cent of total revenues, or A$94.6 million. Collection services revenue rose 14 per cent to A$38.8 million; and purchased debt ledgers' revenues were worth A$24.2 million.

Baycorp is undertaking a three-year project to increase the size and scale of products.

Managing director Keith McLaughlin said in a statement today that the group's operating cash flow remained strong, up 43 per cent on the previous year to A$64.4 million, before one-off items.

However, further reducing costs remained the "standout challenge", Mr McLaughlin said.

Significant items, previously been announced, include litigation settlement and costs, an executive share plan write-down and a number of asset write-downs, company restructuring, integration and employee termination costs.

Baycorp will pay no final dividend.

The company's shares were last trading at $2.00, up 3c.

Mr McLaughlin said he would leave the position at the end of his contract, which finishes in June 2004.

He said he had largely achieved his objectives -- to consolidate the merger of New Zealand business Baycorp and Australia's Data Advantage, and provide a solid foundation for the company to move ahead.

The board is currently searching for a new managing director.

- NZPA