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

[mskv]

1 May 2008
Company Announcement

DORCHESTER PACIFIC ANTICIPATES INCREASED PROVISIONING

The board of Dorchester Pacific today advised that the previous profit
guidance of $3 to $4 million for the financial year ended 31 March 2008 will
not be achieved as a result of trading conditions in a difficult finance
market and a lower than anticipated contribution from St Laurence Limited.

The directors also advised that given a recent deterioration in the property
market which they believe is significant and unlikely to improve in the short
term, they have determined to take additional provisions on property loans.
This provisioning takes into account the longer time it is now expected to
take to realise some property positions. A review is also underway of the
carrying value of investments, including the 25% holding in St Laurence
Limited which may further impact the FY08 profit.

Chairman of Dorchester Pacific, Mr Barry Graham, said: "There has been a
deterioration in property asset values against which lending is secured and
we anticipate this could result in an increase in provisioning of around $5
million after tax. The review of the value of St Laurence may result in a
non-operating impact to shareholder's equity.

"Cash holdings continue to remain consistently above $30 million and we
maintain positive matching between our debenture obligations and incoming
cash from the repayment of loan receivables. We are therefore currently
comfortable in our ability to repay debenture obligations as they fall due.
We have maintained a diversified loan book, with our top five loans
accounting for only around 25% of our total receivables with none of these
being inter-related parties."

The company also today announced that CEO Andrew Walker has resigned to take
up a role at Auguste Holdings Limited. Auguste Holdings holds a substantial
majority of the shares in Auguste Finance Limited, which is the majority
shareholder in St Laurence Limited and a substantial shareholder in
Dorchester Pacific. Dorchester Pacific holds a 25% stake in St Laurence.

Mr Andrew Walker said: "Having set the path forward for Dorchester in a
difficult finance market I feel that the time is right for me to move on and
to take on a new challenge. I am proud to be leaving the company in a strong
and liquid position."

Mr Graham said: "Andrew's services will be available to Dorchester through
his new role at Auguste Holdings which will ensure continuity while new
management arrangements are put in place.

"Going forward we will continue to simplify the business and reduce costs.
We will de-emphasise capital intensive activities and focus on new business
opportunities which leverage the company's existing expertise and
infrastructure.

"On behalf of Dorchester, I would like to thank Andrew for his leadership
over a period of major market upheaval and uncertainty. He has contributed
significantly to re-engineering Dorchester Pacific for a changed market
environment."

ENDS

What have we been saying the current management have destroyed any value in Dorchester.
They are having to write down St Laurence, now that's a surprise, NOT.
Did the CEO describe it as the "best deal he had ever done", hate to see his other deals.

[lewinsky]

Is anyone really surprised by todays announcement?
It was inevitable that Walker would go before the Annual Result was announced and certainly before the Annual Meeting.
I am really looking forward to DSurf's interpretation of todays announcement.
I am not looking forward to receiving the Annual Report and reading the payments to Directors and Executives.
I own the minimum number of shares in DPC to attend the Annual Meeting, which I think should be made to coincide with the dates of the Comedy Festival.

Lew

[Dr_Who]

This has to be one of my worst investments in the portfolio. I will attend the AGM and ask some hard questions. Best thing is for DPC to sell all the assets and return cash to shareholders. :mad:

It strikes me as odd that Brynes continues to buy and average down. Does he know something we dont? The only reassurance is that Stl, HG and Brynes are all in this and if it goes under, we all go with it.

[Nitaa]

The hits just keep in coming

DPC to be in the 20's by end of June? Next news from DPC will be bad I am afraid.

AW said he is proud of his achievements. The company is very liquid (except shareholders value has been decimated) Hmm. Glad he didnt have a bad couple of years.

Again, lack of info i am afraid....going...going..gone?

[bermuda]

Nita,
I hope you are not buying. You cant turn a profit if enquiries are diminishing. A mate of mine who works for them said it is very hard when the enquiry level is down 60 %.

Why bother with this stock which is under pressure?

Nita,
I hope you took the opportunity to get out in March.

[Dr_Who]

DPC has a market cap of $14 M, NTA $1.70(?) and cash in the bank of $30 M. Am I missing something or is DPC trading way below NTA and cash holding?

[mskv]

[QUOTE=Nita;197697]The hits just keep in coming

I'm astonished that AW thinks he thinks he has left the company in a strong position. I wonder what he considers a poor position.

The fact is he has left DPC with
- no direction
- a $30m investment in ST Laurence that is probably at best worth $10m
- $35m less cash
- Shareholders facing large writedowns in property (which when he started was his new direction.
- unusually large loan exposures to Queenstown property

In defence of AW, when he started he had no finace sector experience, no CEO experience, no management experience, yet the board appointed him.

The board must take responsibility for this and some of the ludicrious decisions in the last year and a bit

I really wonder what role Kevin Podmore has employed AW to do?

[Billy Boy]

Dont be to quick to judge DPC yet....
Lets get a look at their book at F/Y and I hope they dont try to fudge them.
They are cleaning out the cuppboards in regards ceo's etc, they dont have immediate problems in repaying their debentures. and the assets here in Q,town are all earners and established (except beacon & Alpine village but they should earn over the ski season)
We need a clear picture on the/any defaulters
and as bermuda always says " the info is there is you look hard"
BB

[mskv]

Dont be to quick to judge DPC yet....
Lets get a look at their book at F/Y and I hope they dont try to fudge them.
They are cleaning out the cuppboards in regards ceo's etc, they dont have immediate problems in repaying their debentures. and the assets here in Q,town are all earners and established (except beacon & Alpine village but they should earn over the ski season)
We need a clear picture on the/any defaulters
and as bermuda always says " the info is there is you look hard"
BB

I hope you are right about repaying debentures. Not certain you can trust they know what is happening. Have they only just realised that property values are falling. To put out two profit downgrades in a month is unbelievable.

Do they really know there liquidity profile. Has it accounted for the slower and lower property sales?

The major shareholders need to act and ensure that they get some experience in at CEO. Maybe it would be in the best interests of shareholders to put it into voluntary administration and appoint an administrator.

[Nitaa]

Nita,
I hope you took the opportunity to get out in March.

Bermuda. I got out of this stock some 2 to 3 years ago when it was over $2.60. I still lost a little bit but it was negligable