TRA - Turners Automotive Group [previously TNR - Turners Limited]

[dsurf]

I would like to highlight the brilliant communication skills by the CEO in todays herald article. (give him a pay rise!!!)

Providing info is annoying!!!!!!!!
By definition DPC already comply!!!!!!!!!

Andrew Walker, chief executive of Dorchester Pacific Group, one of a handful of remaining listed finance companies, said the request from NZX was clearly a kneejerk reaction to Lombard's failure and "a rather annoying hindrance to our business".

He said it would divert management from core tasks "to come up with answers to questions which by definition you should already be in compliance with".




NZX puts finance firms on notice after failure
5:00AM Tuesday April 22, 2008
By Adam Bennett



Finance companies in freefall
Geneva fate in hands of debenture investors
Trade in PFG suspended
In the aftermath of Lombard Finance's failure, New Zealand Exchange has moved to improve the information disclosed by the remaining handful of listed finance companies.

The market operator and regulator said that "in the current environment" it considered finance firms' monthly reinvestment rates, debt servicing obligations, expected monthly income and loan concentration "material information" that should be disclosed to the market.

Unless they explain by the close of trade today why they do not consider this information material, they will be required to disclose it by the end of each month beginning on April 30.

NZX specified that information on loan concentration should detail the proportion of a firms' overall lending to its biggest five borrowers, "and any significant connections" between them.

This month, the Herald reported that the loan book of Lombard Finance and Investments, a subsidiary of the listed Lombard Group, had become highly concentrated. The information was in an amendment to the company's prospectus filed to the Companies Office last Christmas Eve, but despite its apparent significance, Lombard's parent did not disclose it to the market.


After Lombard Finance's receivership on April 10, NZX confirmed it was investigating the company's compliance with disclosure rules.

Andrew Walker, chief executive of Dorchester Pacific Group, one of a handful of remaining listed finance companies, said the request from NZX was clearly a kneejerk reaction to Lombard's failure and "a rather annoying hindrance to our business".

He said it would divert management from core tasks "to come up with answers to questions which by definition you should already be in compliance with".

NZX head of market supervision Elaine Campbell denied that the request was a reaction to Lombard. "This is a sector that has been seeing troubles now for some lengthy period of time."

Under the present conditions the information NZX was asking for was clearly material in that it was "what a reasonable person would expect to have an effect on the price of securities".

"This is what we believe these companies should be disclosing and we have given them the opportunity to dispute that."

NZX's beefed-up approach to disclosure applies to listed finance companies or companies with material finance company subsidiaries. It would apply to Cynotech Holdings, Dominion Finance, Dorchester Pacific Group, Marac Finance's owner, Pyne Gould Corporation, and New Zealand Finance.


Listed finance companies or finance company subsidiaries of listed companies which have struck difficulties in the past two years are Lombard, OPI Pacific Finance -formerly known as MFS Pacific Finance, and Nathans Finance.

OPI Pacific Finance is not in receivership and is seeking a moratorium from investors. Campbell said its parent company was expected to comply with NZX's request.

Meanwhile, Lombard Group chief executive Michael Reeves yesterday said no value would be attributed to Lombard Finance in the group'scoming March year results. The value of $2 million in Lombard Finance debenture stock held by the group would be assessed after an initial receivers' report.

Reeves also said that Lombard Group has sold its Maestro online insurance and mortgage facilitation business to the company's general manager, and Lombard's board was reviewing the group's operations in the light of the Lombard Finance receivership.

WHAT NZX WANTS

* Listed finance company information - NZX deems the following "material":
* The reinvestment rate of investors for the month to date.
* The debt being serviced for the month to date.
* The expected income for the following month.
* The concentration of the loan book, specifically the proportion of the overall loan book in the top five borrowers and any significant connections between the top five borrowers such that the failure of one could impact on the other.

[Hoop]

I must admit ..D surf.. reading between the lines from Andrew's statement it sounds very much like they(DPC) haven't an ongoing updating financial monitoring system in place...if that's the case a financial company not monitoring its own performance is scary to say the least. With a monitoring system in place it should not be a onerous task in reporting to the NZX every month.

I also have a feeling these guys still don't get it!!
....Andy, my lad, have a look at your companies share price...it could tell you why the NZX acted this way....there is no knee jerk reaction from where I sit.

Anyway....Guys...tough!!! If NZ small finance companies want to act like secret societies and ignore your investors and shareholders, treat them like second class citizens, and feed them with childish like sales propaganda bullsh1t..then you get want you deserve....regulations!!

As I said in my last post ..Good idea NZX.

I hope now that the industry wakes up and gives it's shareholders/investors the respect they deserve. It's long overdue.


Disc: I have no shares in this sector at the moment.

[Hoop]

James Bond I agree buying St Laurence was very stupid

At that time, that it was a defensive move...a textbook example of merging with the big guys so they can protect ones backside from a hostile takeover as well as protection against an increasingly hostile financial environment. At the time DPC was exposed (high NTA value) with funds drying up, a shortage of experienced skilled personnel, and Hugh Green at that time may not had been seen as a reliable white knight stockholder.

In hindsight... a good move for DPC as a ongoing company.....bad news/no win situation for the shareholders.

[Toddy]

I must admit ..D surf.. reading between the lines from Andrew's statement it sounds very much like they(DPC) haven't an ongoing updating financial monitoring system in place...if that's the case a financial company not monitoring its own performance is scary to say the least. With a monitoring system in place it should not be a onerous task in reporting to the NZX every month.

I also have a feeling these guys still don't get it!!
....Andy, my lad, have a look at your companies share price...it could tell you why the NZX acted this way....there is no knee jerk reaction from where I sit.

Anyway....Guys...tough!!! If NZ small finance companies want to act like secret societies and ignore your investors and shareholders, treat them like second class citizens, and feed them with childish like sales propaganda bullsh1t..then you get want you deserve....regulations!!

As I said in my last post ..Good idea NZX.

I hope now that the industry wakes up and gives it's shareholders/investors the respect they deserve. It's long overdue.


Disc: I have no shares in this sector at the moment.

Why not just ask for a monthly cashflow statement. And if DPC cannot provide this then they can send in copies of their bank statements to the NZX and highlight capital items vs p&l items. Forget about the bulls*it, no depreciation etc .All as they need is a photocopier and a highlight pen.

The NZX will soon work out if the Company is in trouble of not. Hell, I'll do it for a $1000 a month. I'm sure that the shareholders will not mind paying this small amount for an independent report each month on the cash position.

Qualifications. Member C.A since 1990, B.Com, U.K banking 8 years. Now mucking around home growing Kiwifruit and analysing companies on the NZX,ASX.

[POSSUM THE CAT]

Hoop how do you come to your hindsight decision. Because my thoughts are that the colapse of ST Laurence will kill Dorchester and I think there is a big probability that ST Laurence will colapse

[Hoop]

Hoop how do you come to your hindsight decision. Because my thoughts are that the colapse of ST Laurence will kill Dorchester and I think there is a big probability that ST Laurence will colapse

StL collapse??? I'm under the impression StL is one of the few very strong Financial company Groups in NZ and Australia...Chris Lee who is in regular contact rates it highly.

A La, secret society...I'm probably the last to know ..so Possum (without libeling yourself) what's the gos??

[dsurf]

At that time, that it was a defensive move...a textbook example of merging with the big guys so they can protect ones backside from a hostile takeover as well as protection against an increasingly hostile financial environment. At the time DPC was exposed (high NTA value) with funds drying up, a shortage of experienced skilled personnel, and Hugh Green at that time may not had been seen as a reliable white knight stockholder.

In hindsight... a good move for DPC as a ongoing company.....bad news/no win situation for the shareholders.

Don't you mean ......In hindsight Great for ongoing management jobs etc ...... paid for by shareholders, debenture holders .....creditors coming?

[POSSUM THE CAT]

Hoop just my nose tells me it smells. & My nose detected a very foul odour from Provincial Finance over four years ago and Cris Lee was rating it very highly. Do some research on national property trust and there conection with some of the ST Laurence people. My nose has told me that Strategic Finance is not in the best of condition either. Some very big holes in the ground here in Auckland that are not going anywhere at moment the newspapers say they are financing. Very glad to have my money out of Strategic.

[Steve]

In the aftermath of Lombard Finance's failure, New Zealand Exchange has moved to improve the information disclosed by the remaining handful of listed finance companies.

The market operator and regulator said that "in the current environment" it considered finance firms' monthly reinvestment rates, debt servicing obligations, expected monthly income and loan concentration "material information" that should be disclosed to the market.

The NZX should have demanded this long ago. It would have been preferable to the weak 'confirm that nothing is wrong' request that they did when it was first hitting the fan. Better later than never, I guess...

I must admit ..D surf.. reading between the lines from Andrew's statement it sounds very much like they(DPC) haven't an ongoing updating financial monitoring system in place...if that's the case a financial company not monitoring its own performance is scary to say the least. With a monitoring system in place it should not be a onerous task in reporting to the NZX every month.

What's surprising is that they obviously don't have daily management reporting with regards to liquidity etc, given their loan book size and current market conditions, which should be available with the push of a buttom on any halfway decent finance-company accounting system.

Disc: have previously worked in the finance industry.

[Hoop]

Well I read DPC response to NZX enquiry.....hate to admit it.. but.. I didn't understand one word that was written ...could anyone with a higher IQ than me please tell me the state of DPC with facts from this piece of gobbledygook nonsense.

Oh dear!!! as an investor I going off DPC and the rest of these financial companies in a big way!!!!

NZX..I consider this disclosure as unacceptable.


DPC 22/04/2008 GENERAL REL: 1648 HRS Dorchester Pacific Limited GENERAL:

DPC: Dorchester Pacific Limited -

Continuous Disclosure Inquiry 22 April 2008

Ms Elaine Campbell
Head of Market Supervision
New Zealand Exchange Limited
P O Box 2959
Wellington

Dear Ms Campbell

Dorchester Pacific Limited - Continuous Disclosure Inquiry

Dorchester Pacific Limited ("DPC") has received the letter from NZX Regulation referred to in their press release dated 18 April 2008 entitled "Finance Company Disclosure".

DPC undertakes regular reviews of a broad suite of financial metrics relevant to assessing its financial and trading position, and its solvency. Whilst the matters listed by NZX Regulation in its 18 April 2008 letter are important considerations, they are a subset of the broader suite and focussing on these factors without regard to the other metrics provides an incomplete and potentially misleading picture.

These financial metrics are reviewed by DPC against the background of its continuous disclosure obligations under Rule 10.1.1 of the NZSX Listing Rules and the disclosure requirements placed upon Dorchester by its various trust deeds. Should any such factor, when considered in the context of other relevant information, be "material information" under the NZSX Listing Rules, then DPC is required to disclose such information to the market.

The Directors confirm that as at the date of this letter DPC is in full compliance with its obligations under Rule 10.1.1. In providing this confirmation, the Directors have specifically considered the matters listed by NZX Regulation.

Yours sincerely
Barry Graham Chairman

End CA:00163570 ForPC Type:GENERAL Time:2008-04-22:16:48:30