By DANIEL RIORDAN
Market outperformer Baycorp Holdings is not letting up.
Managing director Keith McLaughlin, speaking after the company yesterday posted a 17 per cent increase in net profit, said he expected 20 per cent annual profit growth over the next three to five years.
The debt collection and credit information company made a net profit of $15.73 million in the year to June, compared with the previous year's $13.45 million.
Operating profit was 24 per cent higher at $16.74 million, after adjusting for $1 million of setup costs for its nine-month-old Australian joint venture, Alliance Group Holdings.
Baycorp expects to turn that loss around to a $1 million profit this year, with other parts of the company's operations expected to continue their strong performance.
Mr McLaughlin said the new financial year had started as strongly as the old year finished.
However, while most growth in the first part of the last financial year came from credit information business, indicating a robust economy with high consumer confidence, growth in recent months had been fuelled by debt collection.
He highlighted the company's solid performance in its core local business in a year when much of its management time and other resources were focused on expansion into Australia and Asia.
These include strategic alliances with Singapore-based Keppel Communications, a subsidiary of telecommunications and logistics provider Keppel T&T, and with business information provider Dun and Bradstreet, also in Singapore.
Mr McLaughlin said Baycorp's intellectual property was in as much demand in Asia as its technology, which although pleasing, had meant a more hands-on role from Baycorp management than expected.
Looking further ahead, Mr McLaughlin said it would not be too long before income from the Australian receivables management business would top its counterpart in New Zealand, but there was no reason why the company could not maintain its presence here while drawing income from Australia.
He said Baycorp's February purchase of 128i Limited - since renamed Baycorp ID Services - had already brought the company market leadership in the newly emerging service area of secure internet communication and digital certification.
Baycorp shares have almost doubled since last October.
Asked if the company would consider further share splits if its price went any higher, Mr McLaughlin said it would need a good reason.
"Maybe if we found stock liquidity had become an issue, but that's not yet the case."
Baycorp shares closed 35c down at 1255c after the result came in under analysts' consensus forecast for operating profit of $16.4 million.
Baycorp: you ain't seen nothing yet
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