Baycorp Advantage’s share price peaked at $7.50 in June 2002. It reached a record low of 95 cents 18 months later. The share price has since risen to about $3.
Profile: Baycorp Advantage was formed by a merger between two of Australasia’s most prominent credit businesses. Baycorp was the leading information solutions provider in New Zealand, while Data Advantage was the leading supplier of credit support services, data and software in the Asia-Pacific region.
While debt collection is historically its core business, it provides only 34 per cent of its profits. The company’s Business Information Services (BIS) delivers 57 per cent of profits, and provides credit history information to companies. Decision and Marketing Solutions contributes 9 per cent of profits and helps businesses automate their credit processes using analytical technology and software.
The major slump in Baycorp’s share price was due to significant writedowns of costs associated with combining the two merged businesses and the writing off of goodwill.
Current details: Baycorp Advantage announced a $21 million net profit for the financial year to June – up 56 per cent from last year. Overall the company produced a strong result, with operating cash-flows doubling and a significant improvement in working capital. BIS produced a 23 per cent growth in earnings and Decision Solutions returned to profit after losses the year before. No dividends were paid; because of this and the increased working capital net debt levels fell from $62 million to $12 million.
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