Rates Round Up

Hawkins' Cynotech foregoes interim dividend; Dorchester Pacific makes fourth payment to investors; PGG Wrightson Finance ups ante across the board, Savings & Loans looks long.

Sunday, September 27th 2009, 9:20PM

by Paul McBeth

Hawkins' Cynotech foregoes interim dividend
Cynotech Holdings chairman Allan Hawkins has told investors they will have to forego an interim dividend as the company takes an "unashamedly conservative" approach to protect the company in the current environment.

Hawkins, who has criticised the provisions taken by some other finance companies, expects more firms in moratorium to fall over and that there won't be an improvement in the sector in the calendar year.

Still, he predicts Cynotech will continual to improve next year as a result of the prudent measures the company has taken.

Dorchester Pacific makes fourth payment to investors
Dorchester Finance, the subsidiary of Dorchester Pacific, made its fourth payment to debenture stock investors under its deferred repayment plan, taking the total amount repaid to 35%.

Last month, executive director Paul Byrnes told Dorchester Pacific shareholders a settlement with debenture holders was one of four steps that would help ensure the future of the business. The other options on the table were for the firm to improve its operating performance, realise the value of assets or to raise new capital.

PGG Wrightson Finance ups ante across the board, Savings & Loans looks long
PGG Wrightson Finance upped the ante across the board, boosting its deposit rates 20 basis points for three-month terms, 50 points for six-months, 35 points for nine-months, and 50 points for 12- and 18-months and two- and three-year deposits.

Meanwhile, Savings & Loans took a long-term view, boosting its 12-month deposits 50 points, its 18-month terms 100 points, two-year 125 points, and introduced three-year rates at 8.75%. It also increased its call rate 50 points and its six-month rate 25 points.

ASB switched its five-month 5% term deposit special to six months, while TSB also entered the six month space, upping its rates 100 basis points.

MARAC, which announced details about a capital raising to clear its books, cut its three- and 12-month rates 25 points, and slashed 150 points from its two-year rates, while boosting nine- and 18-month terms by 75 points.

Paul is a staff writer for Good Returns based in Wellington.

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